10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER 001-36379

ENERGOUS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	46-1318953
(State of incorporation)	(I.R.S. Employer Identification No.)

3590 North First Street, Suite 210, San Jose, CA 95134

(Address of principal executive office)   (Zip code)

(408) 963-0200

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ   No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ   No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  ¨	Accelerated filer  þ
Non-accelerated filer  ¨ (Do not check if smaller reporting company)	Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes ¨          No þ

As of May 5, 2016, there were 16,554,966 shares of our Common Stock, par value $0.00001 per share, outstanding.

ENERGOUS CORPORATION

FORM 10-Q

FOR THE THREE MONTHS ENDED MARCH 31, 2016

INDEX

PART I - FINANCIAL INFORMATION	3
Item 1.  Financial Statements	3
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.  Quantitative and Qualitative Disclosure About Market Risk	25
Item 4.  Controls and Procedures	25
PART II – OTHER INFORMATION	26
Item 1.  Legal Proceedings	26
Item 1A.  Risk Factors	26
Item 2.  Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities	26
Item 3.  Defaults Upon Senior Securities	26
Item 4.  Mine Safety Disclosures.	26
Item 5.  Other Information	26
Item 6.  Exhibits	26

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Energous Corporation

CONDENSED BALANCE SHEETS

	As of
	March 31, 2016			December 31, 2015
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	23,710,666		$	29,872,564
Prepaid expenses and other current assets		667,077			722,249
Prepaid rent, current		80,784			80,784
Total current assets		24,458,527			30,675,597
Property and equipment, net		1,658,631			1,730,365
Prepaid rent, non-current		198,040			218,236
Other assets		51,330			51,330
Total assets	$	26,366,528		$	32,675,528
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4,436,972		$	2,324,973
Accrued expenses		850,185			1,075,879
Deferred revenue		363,636			-
Total current liabilities		5,650,793			3,400,852
Commitments and contingencies
Stockholders’ equity
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at March 31, 2016
and December 31, 2015; no shares issued or outstanding		-			-
Common Stock, $0.00001 par value, 50,000,000 shares authorized at March 31, 2016
and December 31, 2015; 16,488,977 and 16,298,208 shares issued and outstanding
at March 31, 2016 and December 31, 2015, respectively.		163			161
Additional paid-in capital		110,219,294			107,981,695
Accumulated deficit		(89,503,722	)		(78,707,180	)
Total stockholders’ equity		20,715,735			29,274,676
Total liabilities and stockholders’ equity	$	26,366,528		$	32,675,528

The accompanying notes are an integral part of these condensed financial statements.

3

Energous Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended March 31,
	2016			2015
Revenue	$	136,364		$	200,000
Operating expenses:
Research and development		7,674,093			4,275,565
Sales and marketing		807,067			1,043,894
General and administrative		2,455,612			1,812,141
Total operating expenses		10,936,772			7,131,600
Loss from operations		(10,800,408	)		(6,931,600	)
Other income:
Interest income		3,866			6,321
Total		3,866			6,321
Net loss	$	(10,796,542	)	$	(6,925,279	)
Basic and diluted loss per common share	$	(0.66	)	$	(0.54	)
Weighted average shares outstanding, basic and diluted		16,382,691			12,787,884

The accompanying notes are an integral part of these condensed financial statements.

4

Energous Corporation

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

	Common Stock				Additional Paid-in			Accumulated			Total Stockholders'
	Shares		Amount		Capital			Deficit			Equity
Balance at January 1, 2016	16,298,208	$	161	$	107,981,695		$	(78,707,180	)	$	29,274,676
Stock-based compensation - stock options	-		-		423,062			-			423,062
Stock-based compensation - restricted stock units ("RSUs")	-		-		1,223,096			-			1,223,096
Stock-based compensation - employee stock purchase plan ("ESPP")	-		-		62,937			-			62,937
Stock-based compensation - performance share units ("PSUs")	-		-		214,465			-			214,465
Stock-based compensation - deferred stock units ("DSUs")	-		-		29,974			-			29,974
Issuance of shares for RSUs	132,630		1		(1	)		-			-
Issuance of shares for PSUs	13,768		-		-			-			-
Exercise of stock options	44,290		1		110,282			-			110,283
Cashless exercise of warrants	81		-		-			-			-
Proceeds from contributions to the ESPP	-		-		173,784			-			173,784
Net loss	-		-		-			(10,796,542	)		(10,796,542	)
Balance, March 31, 2016 (unaudited)	16,488,977	$	163	$	110,219,294		$	(89,503,722	)	$	20,715,735

The accompanying notes are an integral part of these condensed financial statements.

5

Energous Corporation

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Three Months Ended March 31,
	2016			2015
Cash flows from operating activities:
Net loss	$	(10,796,542	)	$	(6,925,279	)
Adjustments to reconcile net loss to:
Net cash used in operating activities:
Depreciation and amortization		192,104			191,219
Stock based compensation		1,953,534			1,679,221
Amortization of prepaid rent from stock issuance to landlord		20,196			20,196
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		55,172			(265,767	)
Accounts payable		2,111,999			91,359
Accrued expenses		(225,694	)		124,983
Deferred revenue		363,636			300,000
Net cash used in operating activities		(6,325,595	)		(4,784,068	)
Cash flows used in investing activities:
Purchases of property and equipment		(120,370	)		(209,828	)
Net cash used in investing activities		(120,370	)		(209,828	)
Cash flows from financing activities:
Proceeds from the exercise of stock options		110,283			-
Proceeds from contributions to employee stock purchase plan		173,784			-
Net cash provided by financing activities		284,067			-
Net decrease in cash and cash equivalents		(6,161,898	)		(4,993,896	)
Cash and cash equivalents - beginning		29,872,564			31,494,592
Cash and cash equivalents - ending	$	23,710,666		$	26,500,696
Supplemental disclosure of non-cash financing activities:
Common stock issued for services	$	-		$	147,900
Common stock issued for RSUs	$	1		$	1

The accompanying notes are an integral part of these condensed financial statements.

6

ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 1 - Business Organization, Nature of Operations

Energous Corporation (the “Company”) was incorporated in Delaware on October 30, 2012. The Company is developing a technology called WattUp® that consists of proprietary semiconductor chipsets, software, hardware designs and antennas that can enable RF-based wire-free charging for electronic devices, providing power at a distance and ultimately enabling charging with mobility under full software control. The Company’s anticipated business model is to supply silicon components with reference designs and license our WattUp technology to device and chip manufacturers, wireless service providers and other commercial partners to make wire-free charging an affordable, ubiquitous and convenient option for end users. The Company believes its proprietary technology can potentially be utilized in a variety of devices, including wearables, Internet of Things (IoT) devices, smartphones, tablets, e-book readers, keyboards, mice, remote controls, rechargeable lights, cylindrical batteries and any other device with similar charging requirements that would otherwise need a battery or a connection to a power outlet.

The Company is developing solutions that charge electronic devices by surrounding them with a contained three dimensional (“3D”) radio frequency (“RF”) energy pocket (“RF energy pocket”). The Company is engineering solutions that are expected to enable the wire-free transmission of energy from multiple WattUp transmitters to multiple WattUp receiving devices within a range of up to fifteen (15) feet in radius or in a circular charging envelope of up to thirty (30) feet. The Company is also developing a transmitter technology to seamlessly mesh, (much like a network of WiFi routers) to form a wire-free charging network that will allow users to charge their devices as they walk from room-to-room or throughout a large space. To date, the Company has developed multiple transmitter prototypes in various form factors and power capabilities. The Company has also developed multiple receiver prototypes supporting smartphone battery cases, toys, fitness trackers, Bluetooth headsets, as well as stand-alone receivers.

Note 2 – Liquidity and Management Plans

During the three months ended March 31, 2016 and 2015, the Company recorded revenue of $136,364 and $200,000, respectively. During the three months ended March 31, 2016 and 2015, the Company recorded a net loss of $10,796,542 and $6,925,279, respectively. Net cash used in operating activities was $6,325,595 and $4,784,068 for the three months ended March 31, 2016 and 2015, respectively. The Company is currently meeting its liquidity requirements principally through the November 2015 sale of common stock pursuant to a shelf registration and payments received under product development projects entered into with a customer.

As of March 31, 2016, the Company had cash on hand of $23,710,666. On April 24, 2015, the Company filed a “shelf” registration statement on Form S-3, under which the Company may from time to time, sell any combination of debt or equity securities up to an aggregate of $75,000,000. In November 2015, the Company consummated an offering under the shelf registration of 3,000,005 shares of common stock through which the Company raised net proceeds of $19,048,456. The Company expects that cash on hand as of March 31, 2016, together with anticipated revenues, will be sufficient to fund the Company’s operations into the second quarter of 2017.

Research and development of new technologies is, by its nature, unpredictable.  Although the Company will undertake development efforts with commercially reasonable diligence, there can be no assurance that its available resources including the net proceeds from the Company’s IPO, secondary offering, issuance lender shelf registration, and strategic investor financing will be sufficient to enable it to develop and obtain regulatory approval of its technology to the extent needed to create future revenues sufficient to sustain its operations.  The Company may choose to pursue additional financing, depending upon the market conditions, which could include follow-on equity offerings, debt financing, co-development agreements or other alternatives. Should the Company choose to pursue additional financing, there is no assurance that the Company would be able to do so on terms that it would find acceptable.

7

ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 3 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).

These unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended December 31, 2015 included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2016.  The accounting policies used in preparing these unaudited condensed interim financial statements are consistent with those described in the December 31, 2015 audited financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements as well as the reported expenses during the reporting periods.

The Company’s significant estimates and assumptions include the valuation of stock-based compensation instruments, recognition of revenue, the useful lives of long-lived assets, and income tax expense. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Although the Company believes that its estimates and assumptions are reasonable, they are based upon information available at the time the estimates and assumptions were made. Actual results could differ from those estimates.

Reclassification

Certain amounts in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net loss.

Cash and Cash Equivalents

The Company considers all short-term, highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. The Company maintains cash balances that may be uninsured or in deposit accounts that exceed Federal Deposit Insurance Corporation limits. The Company maintains its cash deposits with major financial institutions.

Revenue Recognition

The Company recognizes revenue when the following criteria have been met: persuasive evidence of an arrangement exists, services have been rendered, collection of the revenue is reasonably assured, and the fees are fixed or determinable.

The Company records revenue associated with product development projects that it enters into with certain customers.  In general, these projects are associated with complex technology development, and as such the Company does not have certainty about its ability to achieve the program milestones. Achievement of the milestone is dependent on our performance and the milestone typically needs to be accepted by the customer. The payment associated with achieving the milestone is generally commensurate with the Company’s effort or the value of the deliverable and is nonrefundable. The Company records the expenses related to these projects, generally included in research and development expense, in the periods incurred.

The Company also receives nonrefundable payments, typically at the beginning of a customer relationship, for which there are no milestones. The Company recognizes this revenue ratably over the initial engineering product development period. The Company records the expenses related to these projects, generally included in research and development expense, in the periods incurred.

8

ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 3 – Summary of Significant Accounting Policies, continued

Research and Development

Research and development expenses are charged to operations as incurred. For internally developed patents, all patent application costs are expensed as incurred as research and development expense. Patent application costs, generally legal costs, are expensed as research and development costs until such time as the future economic benefits of such patents become more certain. The Company incurred research and development costs of $7,674,093 and $4,275,565 for the three months ended March 31, 2016 and 2015, respectively.

Stock-Based Compensation

The Company accounts for equity instruments issued to employees in accordance with accounting guidance that requires awards to be recorded at their fair value on the date of grant and are amortized over the vesting period of the award. The Company recognizes compensation costs on a straight line basis over the requisite service period of the award, which is typically the vesting term of the equity instrument issued.

On April 10, 2015, the Company’s board of directors approved the Energous Corporation Employee Stock Purchase Plan (the “ESPP”), under which 600,000 shares of common stock were reserved for purchase by the Company’s employees, subject to approval by the stockholders. On May 21, 2015, the Company’s stockholders approved the ESPP. Under the plan, employees may purchase a limited number of shares of the Company’s common stock at a 15% discount from the lower of the closing market prices measured on the first and last days of each half-year period. The Company recognizes compensation expense for the fair value of the purchase options, as measured on the grant date.

Income Taxes

Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. As of March 31, 2016, no liability for unrecognized tax benefits was required to be reported. The guidance also discusses the classification of related interest and penalties on income taxes. The Company’s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. No interest or penalties were recorded during three months ended March 31, 2016 and 2015.

Net (Loss) Income Per Common Share

Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants (using the treasury stock method), the vesting of restricted stock units (“RSUs”) and performance stock units (“PSUs”) and the enrollment of employees in the ESPP. The computation of diluted loss per share excludes potentially dilutive securities of 4,928,753 and 3,511,890 for the three months ended March 31, 2016 and 2015, respectively, because their inclusion would be antidilutive.

9

ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 3 – Summary of Significant Accounting Policies, continued

Net (Loss) Income Per Common Share, continued

Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive.

	For the Three Months Ended March 31,
	2016		2015
Consulting Warrant to purchase common stock		146,079		278,228
Financing Warrant to purchase common stock		152,778		152,778
IPO Warrants to purchase common stock		460,000		460,000
IR Consulting Warrant		36,000		36,000
IR Incentive Warrant		15,000		15,000
Options to purchase common stock		1,443,495		1,607,075
RSUs		1,419,691		962,809
PSUs		1,191,845		-
DSUs		14,953		-
ESPP		48,912		-
Total potentially dilutive securities		4,928,753		3,511,890

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, "Revenue Recognition," and most industry-specific guidance. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The amendments in the ASU must be applied using one of two retrospective methods and are effective for annual and interim periods beginning after December 15, 2016. On July 9, 2015, the FASB modified ASU 2014-09 to be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. As modified, the FASB permits the adoption of the new revenue standard early, but not before the annual periods beginning after December 15, 2016. A public organization would apply the new revenue standard to all interim reporting periods within the year of adoption. The Company will evaluate the effects, if any, that adoption of this guidance will have on its financial statements.

In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under U.S. GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting.

The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, U.S. GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations.

10

ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 3 – Summary of Significant Accounting Policies, continued

Recent Accounting Pronouncements, continued

In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015. The adoption of this standard did not have a material impact on the Company’s financial position and results of operations.

In August 2015, the FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” – Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015, which clarified the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. ASU 2015-15 has been adopted concurrently with the adoption of ASU 2015-03. The adoption of this standard did not have a material impact on the Company’s financial position and results of operations.

In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. ASU 2015-17 may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively. The Company is currently evaluating the impact this standard will have on its financial statements.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact the adoption of this new standard will have on its financial statements.

In January 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” (“ASU 2016-02”) This standard requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this new standard will have on its financial statements.

Management’s Evaluation of Subsequent Events

The Company evaluates events that have occurred after the balance sheet date of March 31, 2016, through the date which the financial statements are issued. Based upon the review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

11

ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 4 – Commitments and Contingencies

Investor Relations Agreements

Effective January 13, 2014, the Company entered into an agreement with a vendor (“IR Firm”) to provide investor relations services to the Company. Pursuant to the agreement, in addition to monthly cash compensation of $8,000 per month, on March 27, 2014 the Company issued to the IR firm a consulting warrant (“IR Consulting Warrant”) for the purchase of 36,000 shares of common stock. The IR Consulting Warrant has a strike price of $7.80, representing 130% of the IPO price. The IR Consulting Warrant had an initial catch up vesting equivalent to 3,000 shares per month of service, partial months to be prorated on a thirty (30) day basis, from the effective date of this agreement until March 27, 2014. Thereafter, the IR Consulting Warrant vested at a rate of 3,000 shares per month of service. On February 26, 2015, the Company issued to the IR Firm incentive warrants (“IR Incentive Warrants”) to purchase 15,000 shares of common stock with a strike price of $7.80 based upon certain qualified investors and/or institutional or brokerage firms having purchased at least $250,000 in value of the Company’s common shares at the IPO price or greater in the open market on or after the 46 ^th day following March 27, 2014. All IR Incentive Warrants granted during a six month period will collectively vest at each six month anniversary. Both the IR Consulting Warrant and IR Incentive Warrants will have an expiration date four (4) years from the grant date. The shares underlying both the IR Consulting Warrant and the IR Incentive Warrants may be exercised on a cashless basis if at the time of exercise, such warrant shares have not been registered.

As of March 31, 2015, all 36,000 shares under the IR Consulting Warrant were vested. The Company incurred stock-based compensation expense of $0 and $7,522 for the three months ended March 31, 2016 and 2015, respectively, in connection with the IR Consulting Warrant, which was included in general and administrative expense.

On February 4, 2015, the Company entered into a six month consulting agreement with a consultant to provide the Company with investor relations services. Compensation under the agreement included the Company’s issuance on February 26, 2015, of 15,000 shares of common stock valued at $147,900 and monthly cash payments of $5,000. The total value of the common stock compensation was recorded as a prepaid expense and was being amortized over the six month contract period. The contract was renewed for an additional six month period starting in August 2015 for $25,000. This initial fee was amortized over the six month renewal period, plus monthly cash payments of $5,000 were made during the renewal period. The Company incurred amortization expense of $6,250 and $36,975 during the three months ended March 31, 2016 and 2015, which was included in general and administrative expense.

Operating Leases

On September 10, 2014, the Company entered into a Lease Agreement (the “Lease”) with Balzer Family Investments, L.P. (the “Landlord”) related to space located at Northpointe Business Center, 3590 North First Street, San Jose, California. The initial term of the lease is 60 months, with initial monthly base rent of $36,720 and the lease is subject to certain annual escalations as defined in the agreement. On October 1, 2014, the Company relocated its headquarters to this new location.  The Company issued to the Landlord 41,563 shares of the Company’s common stock valued at $500,000, of which $400,000 will be applied to reduce the Company’s monthly base rent obligation by $6,732 per month and of which $100,000 was for certain tenant improvements. The Company recorded $400,000 as prepaid rent on its balance sheet, which is being amortized over the term of the lease and recorded $100,000 as leasehold improvements.

On February 26, 2015, the Company entered into a sub-lease agreement for additional space in the San Jose area. The agreement has a term which expires on June 30, 2019 and an initial monthly rent of $6,109 per month. On August 25, 2015 the Company entered into an additional amended sub-lease agreement for additional space in San Jose, CA. The agreement has a term which expires on June 30, 2019 and an initial monthly rent of $4,314 per month. These leases are subject to certain annual escalations as defined in the agreements.

On July 9, 2015, the Company entered into a sub-lease agreement for additional space in Costa Mesa, CA. The agreement has a term which expires on September 30, 2017 and a monthly rent of $6,376 per month.

12

ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 4 – Commitments and Contingencies, continued

Operating Leases, continued

The future minimum lease payments for leased locations are as follows:

For the Years Ended December 31,		Amount
	2016 (Nine Months)	$	399,017
	2017		572,722
	2018		530,531
	2019		372,652
	Total	$	1,874,922

Development and Licensing Agreement

Effective January 28, 2015, the Company signed a development and licensing agreement with a consumer electronics company to embed WattUp wire-free charging receiver technology in various products including, but not limited to certain mobile consumer electronics and related accessories. During the development phase and through customer shipment of its first product, Energous will afford this customer an exclusive “time to market advantage” in the licensed product categories.

This development and licensing agreement contains both invention and development milestones that the Company will need to achieve during the next two years. Pursuant to the Agreement, on March 23, 2015, the Company received an initial non-refundable payment of $500,000. During the three months ended March 31, 2015, the Company recognized $200,000 of this payment as revenue and fully recognized the $500,000 payment as revenue during the year ended December 31, 2015. The agreement provides for additional amounts to be received by the Company based upon its achievement of certain milestones. During the year ended December 31, 2015, the Company recognized revenue of $2,000,000 upon the achievement of milestones under the agreement.

Effective April 3, 2015, the Company entered into an amendment of the development and license agreement with this consumer electronics company to include joint development of wire-free transmitter technology and technology license back to the Company. On June 5, 2015, the Company entered into a second amendment of the development and license agreement with this consumer electronics company to conform the agreement for technical changes in the product delivery milestones. Effective October 1, 2015, the Company entered into a third amendment of the development and license agreement with this consumer electronics company to make certain changes to, among other things, intellectual property ownership, payment terms and the products covered by the agreement. On March 31, 2016, the Company received payment of $500,000 pursuant to the February 15, 2016 commencement of the second phase described in the third amendment, of which the Company recorded $136,364 in revenue during the three months ended March 31, 2016.

Hosted Design Solution Agreement

On June 25, 2015, the Company entered into a three-year agreement to license electronic design automation software in a hosted environment. Pursuant to the agreement, under which services began July 13, 2015, the Company is required to remit quarterly payments in the amount of $100,568 with the last payment due March 30, 2018. On December 18, 2015, the agreement was amended to redefine the hardware and software configuration and the quarterly payments increased to $198,105.

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ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 4 – Commitments and Contingencies, continued

Amended Employee Agreement – Stephen Rizzone

On April 3, 2015, the Company entered into an Amended and Restated Executive Employment Agreement with Stephen R. Rizzone, the Company’s President and Chief Executive Officer (the “Employment Agreement”).

The Employment Agreement has an effective date of January 1, 2015 and an initial term of four years (the “Initial Employment Period”). The Employment Agreement provides for an annual base salary of $365,000, and Mr. Rizzone is eligible to receive quarterly cash bonuses with a total target amount equal to 100% of his base salary based upon achievement of performance-based objectives established by the Company’s board of directors.

Pursuant to Mr. Rizzone’s prior employment agreement, on December 12, 2013 Mr. Rizzone was granted a ten year option to purchase 275,689 shares of common stock at an exercise price of $1.68 vesting over four years in 48 monthly installments beginning October 1, 2013 (the “First Option”). Mr. Rizzone was also granted a second option award to purchase 496,546 shares of common stock at an exercise price of $6.00 (the “Second Option”). The Second Option vests over the same vesting schedule as the First Option.

Effective with the approval on May 21, 2015 by the Company’s stockholders of its new performance-based equity plan, the Employment Agreement provided and Mr. Rizzone received, a grant of 639,075 Performance Share Units (the “PSUs”). The PSUs, which represent the right to receive shares of common stock, shall be earned based on the Company’s achievement of market capitalization growth between the effective date of the Employment Agreement and the end of the Initial Employment Period. If the Company’s market capitalization is $100 million or less, no PSUs will be earned. If the Company reaches a market capitalization of $1.1 billion or more, 100% of the PSUs will be earned. For market capitalization between $100 million and $1.1 billion, the percentage of PSUs earned will be determined on a quarterly basis based on straight line interpolation. PSUs earned as of the end of a calendar quarter will be paid 50% immediately and 50% will be deferred until the end of the Initial Employment Period subject to Mr. Rizzone’s continued employment with the Company (See Note 6).

Mr. Rizzone is also eligible to receive all customary and usual benefits generally available to senior executives of the Company.

The Employment Agreement provides that if Mr. Rizzone’s employment is terminated due to his death or disability, if Mr. Rizzone’s employment is terminated by the Company without cause or if he resigns for good reason, twenty-five percent (25%) of the shares subject to the First Option and the Second Option shall immediately vest and become exercisable, he will have a period of one year post-termination to exercise the First Option and the Second Option, and if a Liquidation Event (as defined in the Employment Agreement) shall occur prior to the termination of the First Option and the Second Option, one hundred percent (100%) of the shares subject to the First Option and Second Option shall immediately vest and become exercisable effective immediately prior to the consummation of the Liquidation Event. In addition, any outstanding deferred PSUs shall be immediately vested and paid, but any remaining unearned portion of the PSUs shall immediately be canceled and forfeited.

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ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 4 – Commitments and Contingencies, continued

Offer Letter – Brian Sereda

Effective July 13, 2015, the Company appointed Brian Sereda to serve as Vice President and Chief Financial Officer, replacing Interim Chief Financial Officer Howard Yeaton.

In connection with Mr. Sereda’s appointment as Vice President and Chief Financial Officer, the Company and Mr. Sereda executed an offer letter effective July 13, 2015 (the “Sereda Offer Letter”). Under the Sereda Offer Letter, Mr. Sereda will receive an annual base salary of $250,000 per year, and is eligible to earn an annual performance bonus of up to 75% of his then current base salary in accordance with performance objectives established by the Company’s independent compensation committee or the Board of Directors. In addition, under the Sereda Offer Letter and as an inducement to join the Company, Mr. Sereda received an inducement restricted stock unit award covering a total of 120,000 shares of common stock. This restricted stock unit award vests over a period of four years in four equal annual installments on July 13 of each of 2016, 2017, 2018 and 2019, subject to Mr. Sereda’s continued employment with the Company through each vesting date.

In the event Mr. Sereda is terminated without cause, he is entitled to (1) six months of his then-current base salary and (2) payment of COBRA premiums for up to six months. In the event of a liquidation event and termination of employment, except for cause, 100% of the inducement award shall immediately vest.

Consulting Arrangement

On October 5, 2015, George B. Holmes resigned as Chief Commercial Officer of the Company. Mr. Holmes provided consulting services to the Company pursuant to a six month consulting agreement pursuant to which he received consulting fees totaling $80,000. In connection with the consulting arrangement, Mr. Holmes was permitted to extend the exercise period for an option to purchase 80,201 shares of the Company’s common stock at an exercise price of $2.49 per share and an aggregate of 44,836 RSUs would be allowed to vest pursuant to their terms.

Note 5 – Stockholders’ Equity

Authorized Capital

The holders of the Company’s common stock are entitled to one vote per share. Holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the board of directors out of legally available funds. Upon the liquidation, dissolution or winding up of the Company, holders of common stock are entitled to share ratably in all assets of the Company that are legally available for distribution.

Disgorgement of short swing profits

On April 11, 2015, $12,611 of proceeds was received from an officer of the Company who had purchased shares in the December 2014 secondary offering representing the disgorgement of a short swing profit on the officer’s April 2015 sale of the Company’s stock.

Filing of registration statement

On April 24, 2015, the Company filed a “shelf” registration statement on Form S-3, which became effective on April 30, 2015. The “shelf” registration statement allows the Company from time to time to sell any combination of debt or equity securities described in the registration statement up to aggregate proceeds of $75,000,000.

Pursuant to the shelf registration, on November 17, 2015, the Company consummated an offering of 3,000,005 shares of common stock at $6.90 per share and received from the underwriters’ net proceeds of $19,333,032 (net of underwriters’ discount of $1,242,002 and underwriters’ offering expenses of $125,000). The Company incurred additional offering expenses of $284,576, yielding net proceeds from the offering under shelf registration of $19,048,456.

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ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 6 – Stock Based Compensation

Equity Incentive Plans

2013 Equity Incentive Plan

In December 2013 the Company’s board and stockholders approved the “2013 Equity Incentive Plan”, providing for the issuance of equity based instruments covering up to an initial total of 1,042,167 shares of common stock. Effective on March 27, 2014, the aggregate total shares which may be issued under the 2013 Equity Incentive Plan were increased to 2,335,967, as described below.

Effective on March 10, 2014, the Company’s board of directors and stockholders approved the First Amendment to the 2013 Equity Incentive Plan which provided for an increase in the aggregate number of shares of common stock that may be issued pursuant to the Plan to equal 18% of the total number of shares of common stock outstanding immediately following the completion of the IPO (assuming for this purpose the issuance of all shares issuable under the Company’s equity plans, the conversion into common stock of all outstanding securities that are convertible by their terms into common stock and the exercise of all options and warrants exercisable for shares of common stock and including shares and warrants issued to the underwriters for such IPO upon exercise of its over-allotment options).

As of March 31, 2016, 188,627 shares of common stock remain eligible to be issued through equity-based instruments under the 2013 Equity Incentive Plan.

2014 Non-Employee Equity Compensation Plan

On March 6, 2014, the Company’s board of directors and stockholders approved the 2014 Non-Employee Equity Compensation Plan for the issuance of equity-based instruments covering up to 250,000 shares of common stock to directors and other non-employees.

As of March 31, 2016, 69,939 shares of common stock remain eligible to be issued through equity-based instruments under the 2014 Non-Employee Equity Compensation Plan.

2015 Performance Share Unit Plan

On April 10, 2015, the Company’s board of directors approved the Energous Corporation 2015 Performance Share Unit Plan (the “Performance Share Plan”), under which 1,310,104 shares of common stock became available for issuance as PSUs to a select group of employees and directors, subject to approval by the stockholders. On May 21, 2015 the Company’s stockholders approved the Performance Share Plan.

As of March 31, 2016, 31,951 shares of common stock remain eligible to be issued through equity based instruments under the Performance Share Unit Plan.

Employee Stock Purchase Plan

On April 10, 2015, the Company’s board of directors approved the ESPP, under which 600,000 shares of common stock have been reserved for purchase by the Company’s employees, subject to approval by the stockholders. On May 21, 2015, the Company’s stockholders approved the ESPP. Employees may designate an amount not less than 1% but not more than 10% of their annual compensation, but for not more than 7,500 shares during an offering period. An offering period shall be six months in duration commencing on or about January 1 and July 1 of each year. The exercise price of the option will be the lesser of 85% of the fair market of the common stock on the first business day of the offering period and 85% of the fair market value of the common stock on the applicable exercise date.

As of March 31, 2016, 553,977 shares of common stock remain eligible to be issued through equity based instruments under the ESPP. As of March 31, 2016, eligible employees have contributed $173,784 through payroll withholdings to the ESPP for the current eligibility period. On June 30, 2016, an estimated total of 48,912 shares will be delivered to the participating employees.

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ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 6 – Stock Based Compensation, continued

Stock Option Award Activity

The following is a summary of the Company’s stock option activity during the three months ended March 31, 2016:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Life In Years		Intrinsic Value
Outstanding at January 1, 2016		1,487,785		$	4.43	$	8.0	$	5,310,340
Granted		-			-		-		-
Exercised		(44,290	)		2.49		-		-
Forfeited		-			-		-		-
Outstanding at March 31, 2016		1,443,495		$	4.40	$	7.9	$	8,234,898
Exercisable at January 1, 2016		860,970		$	4.34	$	8.0	$	3,076,767
Vested		87,242			4.35		-		-
Exercised		(44,290	)		2.49		-		-
Forfeited		-			-		-		-
Exercisable at March 31, 2016		903,922		$	4.43	$	7.9	$	5,129,844

As of March 31, 2016, the unamortized value of options was $1,395,794. As of March 31, 2016, the unamortized portion will be expensed over a weighted average period of 1.5 years.

Restricted Stock Units (“RSUs”)

On January 4, 2016, the compensation committee of the board of directors granted to various directors, RSUs under which the holders have the right to receive an aggregate of 26,916 shares of the Company’s common stock. These awards were granted under the 2014 Non-Employee Equity Compensation Plan. The awards granted vest fully on the first anniversary of the grant date.

On January 4, 2016, the compensation committee of the board of directors granted to John Gaulding, director and chairman of the board, RSUs under the 2014 Non-Employee Equity Compensation Plan for which Mr. Gaulding has the right to receive 25,000 shares of the Company’s common stock. These shares were issued to Mr. Gaulding in connection with his role as an independent director and chairman of the Board of Directors. The award granted vests fully on the first anniversary of the grant date.

On March 4, 2016, the compensation committee of the board of directors granted an employee inducement RSU awards under which the holder has the right to receive an aggregate of 12,500 shares of the Company’s common stock. The award granted vests over four years beginning on the first anniversary of the date of hire and is contingent upon meeting certain job performance milestones.

The Company accounts for RSUs granted to consultants using the accounting guidance included in ASC 505-50 “Equity-Based Payments to Non-Employees” (“ASC 505-50”). In accordance with ASC 505-50, the Company estimates the fair value of the unvested portion of the RSU award each reporting period using the closing price of the Company’s common stock.

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ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 6 – Stock Based Compensation, continued

Restricted Stock Units (“RSUs”), continued

At March 31, 2016, the unamortized value of the RSUs was $10,881,355. The unamortized amount will be expensed over a weighted average period of 2.9 years. A summary of the activity related to RSUs for the three months ended March 31, 2016 is presented below:

	Total			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2016		1,560,996		$	8.83
RSUs granted		64,416		$	8.11
RSUs forfeited		(15,079	)	$	7.86
RSUs vested		(190,642	)	$	9.98
Outstanding at March 31, 2016		1,419,691		$	8.65
Vested at January 1, 2016		7,800		$	7.94
RSUs vested		190,642		$	9.98
Shares of common stock issued in exchange for RSUs		(132,630	)	$	9.82
Vested at March 31, 2016		65,812		$	10.07

Performance Share Units (“PSUs”)

PSUs shall be earned based on the Company’s achievement of market capitalization growth between the effective date of the Employment Agreement and the end of the Initial Employment Period. If the Company’s market capitalization is $100 million or less, no PSUs will be earned. If the Company reaches a market capitalization of $1.1 billion or more, 100% of the PSUs will be earned. For market capitalization between $100 million and $1.1 billion, the percentage of PSUs earned will be determined on a quarterly basis based on straight line interpolation.

On March 4, 2016, the compensation committee of the board of directors granted an executive inducement PSUs under which the executive is eligible to receive 63,908 shares of the Company’s common stock.

The Company determined that the PSUs were equity awards with both market and service conditions. The Company utilized a Monte Carlo simulation to determine the fair value of the market condition, as described above. Grantees of PSUs are required to be employed through December 31, 2018 in order to earn the entire award, if and when vested.

	Performance Share Units (PSUs) Granted During the Three Months Ended March 31, 2016
Market capitalization	$	136,888,114
Dividend yield		0	%
Expected volatility		60	%
Risk-free interest rate		0.95	%

The fair value of the grant of PSUs to purchase a total of 1,342,061 shares of common stock (including 1,278,153 PSUs granted under the 2015 Performance Share Unit Plan and 63,908 granted as an inducement) was determined to be approximately $3,518,921, and is to be amortized over the service period of May 21, 2015 through December 31, 2018, on a straight-line basis. Amortization was $214,465 and $0 for the three months ended March 31, 2016 and 2015, respectively.

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ENERGOUS CORPORATION

Notes to Condensed Financial Statements

At March 31, 2016, the unamortized value of the PSUs was approximately $2,480,387. The unamortized amount will be expensed over a weighted average period of 2.8 years. A summary of the activity related to PSUs for the three months ended March 31, 2016 is presented below:

	Total			Weighted Average Grant Date Fair Value
Outstanding at January 1, 2016		1,135,614		$	2.62
PSUs granted		63,908		$	2.62
PSUs forfeited		-		$	-
PSUs vested		(7,677	)	$	2.62
Outstanding at March 31, 2016		1,191,845		$	2.62
Vested at January 1, 2016		13,768		$	2.62
PSUs vested		7,677		$	2.62
PSUs forfeited		-		$	-
Shares of common stock issued in exchange for PSUs		(13,768	)	$	2.62
Vested at March 31, 2016		7,677		$	2.62

Deferred Stock Units (“DSUs”)

On January 4, 2016, the compensation committee of the board of directors granted to John Gaulding, director and chairman of the board, DSUs under the 2014 Non-Employee Equity Compensation Plan for which Mr. Gaulding has the right to receive 14,953 shares of the Company’s common stock. These shares were issued to Mr. Gaulding in lieu of $125,000 of his anticipated compensation for his services on the board, including $75,000 worth of RSUs and $50,000 of his regular board stipends. The award granted vests fully on the first anniversary of the grant date.

At March 31, 2016, the unamortized value of the DSUs was $95,033. The unamortized amount will be expensed over a weighted average period of 0.8 years. A summary of the activity related to RSUs for the three months ended March 31, 2016 is presented below:

	Total		Weighted Average Grant Date Fair Value
Outstanding at January 1, 2016		-	$	-
DSUs granted		14,953	$	8.36
DSUs forfeited		-	$	-
DSUs vested		-	$	-
Outstanding at March 31, 2016		14,953	$	8.36

There were no DSUs vested as of March 31, 2016.

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ENERGOUS CORPORATION

Notes to Condensed Financial Statements

Note 6 – Stock Based Compensation, continued

Employee Stock Purchase Plan (“ESPP”)

The current offering period for the ESPP is January 1, 2016 through June 30, 2016. On January 1, 2016 employees enrolled in the ESPP agreed to have withheld up to approximately $347,569. If all participants exercised their option under the ESPP, approximately 48,912 shares would be issued on June 30, 2016. Through March 31, 2016, employees have contributed an aggregate of $173,784. As of March 31, 2016, 46,023 shares have been issued under this plan, with 553,977 shares reserved for future issuance.

The weighted-average grant-date fair value of the purchase option for each designated share purchased under this plan was approximately $2.57, which represents the fair value of the option, consisting of three main components: (i) the value of the discount on the enrollment date, (ii) the proportionate value of the call option for 85% of the stock and (iii) the proportionate value of the put option for 15% of the stock. The Company recognized compensation expense for the plan of $62,937 and $0 for the three months ended March 31, 2016 and 2015, respectively.

The Company estimated the fair value of options granted during the three months ended March 31, 2016 using the Black-Scholes option pricing model. The fair values of stock options granted were estimated using the following assumptions:

	Options Granted During the Three Months Ended March 31, 2016
Stock price	$	8.36
Dividend yield		0	%
Expected volatility		56	%
Risk-free interest rate		0.49	%
Expected life		6 months

Stock-Based Compensation Expense

The following tables summarize total stock-based compensation costs recognized for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016		2015
Stock options	$	423,062	$	259,515
RSUs		1,223,096		1,333,875
IR warrants		-		85,831
PSUs		214,465		-
ESPP		62,937		-
DSUs		29,974		-
Total	$	1,953,534	$	1,679,221

The total amount of stock-based compensation was reflected within the statements of operations as:

	Three Months Ended March 31,
	2016		2015
Research and development	$	910,843	$	1,034,318
Sales and marketing		56,317		201,256
General and administrative		986,374		443,647
Total	$	1,953,534	$	1,679,221

Note 7 – Related Party

On July 14, 2014, the Company’s Board of Directors appointed Howard Yeaton as the Company’s Interim Chief Financial Officer. On July 13, 2015, the Company appointed Brian Sereda as the Company’s Chief Financial Officer (See Note 4), replacing Interim Chief Financial Officer Howard Yeaton. Howard Yeaton is the Managing Principal of Financial Consulting Strategies LLC (“FCS”). During the three months ended March 31, 2016 and 2015, the Company incurred fees to FCS of $0 and $25,963, respectively, in connection with Mr. Yeaton’s services as Interim Chief Financial Officer and $10,631 and $26,257, respectively, for other financial advisory and accounting services provided by FCS.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

As used in this Form 10-Q, unless the context otherwise requires the terms “we,” “us,” “our,” and “Energous” refer to Energous Corporation, a Delaware corporation. This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or other comparable terms. All statements other than statements of historical facts included in this Quarterly Report on Form 10-Q regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding proposed expectations for revenues, cash flows and financial performance, the anticipated results of our development efforts and the timing for receipt of required regulatory approvals and product launches. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to develop a commercially feasible technology; receipt of necessary regulatory approvals; our ability to find and maintain development partners, market acceptance of our technology, the amount and nature of competition in our industry; our ability to protect our intellectual property; and the other risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of this Quarterly Report on Form 10-Q and our previously filed Annual Report on Form 10-K. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Overview

We are developing a technology called WattUp® that consists of proprietary semiconductor chipsets, software, hardware designs and antennas that can enable RF-based wire-free charging for electronic devices, providing power at a distance and ultimately enabling charging with mobility under full software control. Our anticipated business model is to supply silicon components with reference designs and license our WattUp technology to device and chip manufacturers, wireless service providers and other commercial partners to make wire-free charging an affordable, ubiquitous and convenient option for end users. We believe our proprietary technology can potentially be utilized in a variety of devices, including wearables, Internet of Things (“IoT”) devices, smartphones, tablets, e-book readers, keyboards, mice, remote controls, rechargeable lights, cylindrical batteries and any other device with similar charging requirements that would otherwise need a battery or a connection to a power outlet.

We believe our technology is novel in its approach, in that we are developing a solution that charges electronic devices by surrounding them with a contained three dimensional (“3D”) radio frequency (“RF”) energy pocket (“RF energy pocket”). We are engineering solutions that we expect to enable the wire-free transmission of energy from multiple WattUp transmitters to multiple WattUp receiving devices within a range of up to fifteen (15) feet in radius or in a circular charging envelope of up to thirty (30) feet. We are also developing our transmitter technology to seamlessly mesh, (much like a network of WiFi routers) to form a wire-free charging network that will allow users to charge their devices as they walk from room-to-room or throughout a large space. To date, we have developed multiple transmitter prototypes in various form factors and power capabilities. We have also developed multiple receiver prototypes supporting smartphone battery cases, toys, fitness trackers, Bluetooth headsets, as well as stand-alone receivers.

When the company was first founded, we recognized the need to build and design an enterprise-class network management and control system (“NMS”) that was integral to the architecture and development of our wire-free charging technology. Our NMS system can be scaled up to control an enterprise consisting of thousands of devices or scaled down to work in a home or IoT environment.

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The power, distance and mobility capabilities of the WattUp technology were validated independently by Underwriters Laboratories (UL) in October 2015 and the results were published in November 2015.

Our technology solution consists principally of transmitter and receiver application specific standard products (“ASSPs”) and novel antenna designs driven through innovative algorithms and software applications. We submitted our first ASSP design for wafer fabrication in November 2013 and have since then been developing multiple generations of transmitter and receiver ASSPs, multiple antenna designs, as well as algorithms and software designs that we believe, in the aggregate, will optimize our technology by reducing size and cost, while increasing performance to a level that will enable our technology to be integrated into a broad spectrum of devices. We have developed a “building block” approach which allows us to scale our product implementations by combining multiple transmitter building blocks and/or multiple receiver building blocks to provide the power, distance, size and cost performance necessary to meet application requirements. While the technology is very scalable, in order to provide the necessary strategic focus to grow the company effectively, we have defined our market as devices that require 10 watts or less of power to charge. We will continue to invest in ASSP development as well as in the other components of the WattUp system to improve product performance, efficiency, cost-performance and miniaturization as required to grow the business and expand the ecosystem while also distancing us from any potential competition.

We believe that if our development, regulatory and commercialization efforts are successful, our transmitter and receiver technology will support a broad spectrum of charging solutions ranging from contact-based charging or charging at distances of no more than a few centimeters (“nearfield”) to charging at distances of up to 15 feet (“farfield”).

In February of 2015 we signed a Development and License Agreement with one of the top consumer electronic companies in the world based on total worldwide revenues. The agreement is milestone-based and, while there are no guarantees that the WattUp® technology will ever be integrated into our strategic partner’s consumer devices, we continue to progress the relationship as evidenced by the achievement of our first revenues in late 2015 from Engineering Services resulting from the achievement of certain milestones under the agreement. We anticipate continued progress with the relationship which we expect will result in additional Engineering Services Revenue and ultimately, if fully executed, significant revenues from royalties based on the WattUp® technology being integrated into products being shipped to the consumer.

In January of 2016 we unveiled a new Miniature WattUp Transmitter design, as well as a small form factor receiver, both of which were developed as a direct result of our efforts to reduce cost and size. Due to its low cost and small size, the miniature transmitter is anticipated to be bundled in-box with WattUp-enabled receivers replacing alternative charging solutions like power adapters and charging cables. The ability to bundle and provide a low cost, portable charging solution for receivers provides portability to the WattUp solution and is anticipated to accelerate the ecosystem build out.

In February of 2016 we began delivering Miniature WattUp evaluation kits to potential licensees to allow their respective engineering and product management departments to test and evaluate our technology. We expect that the testing and evaluations currently taking place will lead to an expansion of our licensing partners and will result in products with our nearfield technology embedded beginning to be shipped to the consumer in late 2016/early 2017. In March 2016 we entered into a development agreement with Pegatron, a worldwide leader in electronic and computing design and manufacturing service (DMS), and in April 2016 we entered into a joint development and licensing agreement with a specialty battery company in the hearing devices and wearables market.

We have implemented an aggressive intellectual property strategy and are continuing to pursue patent protection for new innovations. As of March 31, 2016, we had in excess of 250 pending patent and provisional patent applications. Additionally, the U.S. Patent and Trademark Office (or the PTO) has issued our first five patents and notified us of the allowance of three additional patents. In addition to the inventions covered by these patents and patent applications, we have identified a significant number of additional specific inventions we believe are novel and patentable. 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. Our strategy is to continually monitor the costs and benefits of each patent application and pursue those that will best protect our business and expand the core value of the Company.

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Critical Accounting Policies and Estimates

Revenue Recognition

We recognize revenue when the following criteria have been met: persuasive evidence of an arrangement exists, services have been rendered, collection of the revenue is reasonably assured, and the fees are fixed or determinable.

We record revenue associated with product development projects that we enter into with certain customers.  In general, these projects are associated with complex technology development, and as such we do not have certainty about our ability to achieve the program milestones. Achievement of the milestone is dependent on our performance and the milestone typically needs to be accepted by the customer. The payment associated with achieving the milestone is generally commensurate with our effort or the value of the deliverable and is nonrefundable. We record the expenses related to these projects, generally included in research and development expense, in the periods incurred.

We also receive nonrefundable payments, typically at the beginning of a customer relationship, for which there are no milestones. We recognize this revenue ratably over the initial engineering product development period. We record the expenses related to these projects, generally included in research and development expense, in the periods incurred.

During the three months ended March 31, 2016 and 2015, we recorded revenue of $136,364 and $200,000, respectively.

Results of Operations

Three Months Ended March 31, 2016 and 2015

Revenues.  During the three months ended March 31, 2016 and 2015, we recorded revenue of $136,364 and $200,000, respectively.

Operating Expenses and Loss from Operations.  Operating expenses are made up of research and development, sales and marketing and general and administrative expenses. Loss from operations for the three months ended March 31, 2016 and 2015 were $10,800,408 and $6,931,600, respectively.

Research and Development Costs. Research and development costs, which include costs for developing our technology, were $7,674,093 and $4,275,565, respectively, for the three months ended March 31, 2016 and 2015. The increase in research and development costs of $3,398,528 is primarily due to a $1,424,266 increase in third party chip development costs tied to our multi-chip development program, an $883,732 increase in compensation from increased engineering headcount in the first quarter compared to the same period last year, a $464,905 increase in patent filing and legal costs tied to our portfolio of over 250 domestic and international filings, a $372,353 increase in engineering design tools software spending and a $166,381 increase in office rent allocation, partially offset by a $123,475 decrease in stock-based compensation expense due to bonus RSU awards granted during the first quarter of 2015 that were immediately vested.

Sales and Marketing Costs. Sales and marketing costs for the three months ended March 31, 2016 and 2015 were $807,067 and $1,043,894, respectively. The decrease in sales and marketing costs of $236,827 is primarily due to a decrease of $297,897 in compensation, including a decrease in stock-based compensation of $144,939, primarily due to the resignation of the Chief Commercial Officer in October 2015, and a $102,148 decrease in travel and entertainment, partially offset by minor increases in consulting and recruiting expenses.

General and Administrative Expenses. General and administrative expenses include costs for general and corporate functions, including facility fees, travel, telecommunications, insurance, professional fees, consulting fees and other overhead. General and administrative costs for the three months ended March 31, 2016 and 2015 were $2,455,612 and $1,812,141, respectively. The increase in general administrative costs of $643,471 is primarily due to a $665,139 increase in compensation, including an increase in stock-based compensation of $542,727, attributable in part to increased headcount within the department, including the CFO position now being filled, and recognition of a full quarter of CEOs RSU agreement during the first quarter of 2016, and partially offset by a $89,949 decrease in consulting expense.

23

Interest Income (Expense), Net. Interest income for the three months ended March 31, 2016 was $3,866 as compared to interest income of $6,321 for the three months ended March 31, 2015. The change in interest income is primarily due to a lower average cash balance during the three months ended March 31, 2016.

Net Loss. As a result of the above, net loss for the three months ended March 31, 2016 was $10,796,542 as compared to $6,925,279 for the three months ended March 31, 2015.

Liquidity and Capital Resources

During the three months ended March 31, 2016 and 2015, we recorded revenue of $136,364 and $200,000, respectively. We incurred a net loss of $10,796,542 and $6,925,279 for the three months ended March 31, 2016 and 2015, respectively. Net cash used in operating activities was $6,325,595 and $4,784,068 for the three months ended March 31, 2016 and 2015, respectively. The Company is currently meeting its liquidity requirements principally through the November 2015 sale of common stock pursuant to a shelf registration and payments received under product development projects entered into with a customer.

As of March 31, 2016, we had cash and cash equivalents of $23,710,666.

We believe our current cash on hand, together with anticipated payments received under current and future product development projects entered into with customers, will be sufficient to fund our operations into the second quarter of 2017. However, depending on how soon we are able to achieve meaningful commercial revenues, we may require additional financing to fully implement our business plan, the ultimate goal of which is to license our technology to device manufacturers, wireless service providers and other commercial partners to make wire-free charging an affordable, ubiquitous and convenient option for end users. Potential financing sources could include follow-on equity offerings, debt financing, co-development agreements or other alternatives. Depending upon market conditions, we may choose to pursue additional financing to, among other reasons, accelerate our product development efforts, regulatory activities and business development and support functions with a view to capitalizing on the market opportunity we see for our wire-free charging technology. On April 24, 2015, we filed a “shelf” registration statement on Form S-3, which became effective on April 30, 2015. The “shelf” registration statement allows the Company from time to time to sell any combination of debt or equity securities described in the registration statement up to aggregate proceeds of $75,000,000. In November 2015, the Company consummated an offering under the shelf registration of 3,000,005 shares of common stock through which the Company raised net proceeds of $19,048,456.

During the three months ended March 31, 2016, cash flows used in operating activities were $6,325,595, consisting of a net loss of $10,796,542, less non-cash expenses aggregating $2,165,834 (representing principally stock-based compensation of $1,953,534 and depreciation expense of $192,104), a $2,111,999 increase in accounts payable from the timing of invoice payments, a $363,636 increase in deferred revenue, partially offset by a $225,694 decrease in accrued expenses. During the three months ended March 31, 2015, cash flows used in operating activities were $4,784,068, consisting of a net loss of $6,925,279, less non-cash expenses aggregating $1,890,636 (representing principally stock-based compensation of $1,679,221 and depreciation expense of $191,219), an increase of $265,767 in prepaid expenses and other current assets and an increase of $300,000 in deferred revenue.

During the three months ended March 31, 2016 and 2015, cash flows used in investing activities were $120,370 and $209,828, respectively. The cash used in investing activities for the three months ended March 31, 2016 consisted of the purchase of laboratory equipment, building fixtures and tenant improvements. The increase for the three months ended March 31, 2015 consisted primarily of the purchases of laboratory and computer equipment and software to accommodate newly hired employees and engineering services and testing performed for our customer.

During the three months ended March 31, 2016, cash flows provided by financing activities were $284,067, which consisted of proceeds from contributions to the employee stock purchase program (“ESPP”) and proceeds from the exercise of stock options. During the three months ended March 31, 2015, cash flows provided by financing activities were $0.

Research and development of new technologies is, by its nature, unpredictable. Although we will undertake development efforts with commercially reasonable diligence, there can be no assurance that our available resources including the net proceeds from our public offerings will be sufficient to enable us to develop our technology to the extent needed to create future revenues to sustain our operations.

24

We cannot assure that our technology will be adopted, that we will ever earn revenues sufficient to support our operations, or that we will ever be profitable. 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.

Off Balance Sheet Transactions

As of March 31, 2016, we did not have any off-balance sheet transactions.

Material Changes in Specified Contractual Obligations

A table of our specified contractual obligations was provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operation of our most recent Annual Report on Form 10-K. There were no material changes outside the ordinary course of our business in the specified contractual obligations during the three months ended March 31, 2016.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

There has been no material change in our exposure to market risk during the three months ended March 31, 2016. Please refer to "Quantitative and Qualitative Disclosures about Market Risk" contained in Part II, Item 7A of our Form 10-K for the year ended December 31, 2015 for a discussion of our exposure to market risk.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We have established disclosure controls and procedures to ensure that material information relating to us is made known to the officers who certify our financial reports and the board of directors.

Based on their evaluation as of March 31, 2016, our principal executive and principal financial and accounting officers have concluded that these disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective as of March 31, 2016 to provide reasonable assurance that information required to be disclosed by us in reports that we file under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in Securities and Exchange Commission rules and forms and that information required to be disclosed by us in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our principal executive officer and our principal financial officer, as appropriate to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting

For the quarter ended March 31, 2016, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

25

PART II – OTHER INFORMATION

Item 1.  Legal Proceedings

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. We may, however, be subject to various claims and legal actions arising in the ordinary course of business from time to time.

Item 1A.  Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed under “Risk Factors” in our annual report on Form 10-K as filed with the Securities and Exchange Commission on March 15, 2016. These factors could materially adversely affect our business, financial condition, liquidity, results of operations and capital position, and could cause our actual results to differ materially from our historical results or the results contemplated by any forward-looking statements contained in this report.

We may not be able to achieve all the features we seek to include in our technology.

We have developed multiple prototypes of our core technology across a broad spectrum of use cases and applications. Based on the development progress associated with these prototypes we have created a product road map that contains several unrealized advances in functionality and feature set. It is our intention to continue to execute against this road map but there are no guarantees that we will be successful in developing all, any or some of the functionality and feature set specified. The level of success we have in executing against the road map will likely have a direct effect on the appeal of our technology to the end consumer.

Item 2. Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities

On February 25, 2016, the Company issued Restricted Stock Unit awards to two new non-executive employees as inducement grants to enter into employment with the Company. These awards cover a total of 38,000 shares of the Company’s common stock. These awards vest in four equal annual installments beginning on the first anniversary of the date of grant. These new hire inducement awards were granted pursuant to NASDAQ Listing Rule 5635(c)(4) and Section 4(a)(2) of the Securities Act of 1933. On March 16, 2016, the Company filed a registration statement on Form S-8 (File No. 333-210239) registering the shares of common stock underlying these awards.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

The exhibits required to be filed as a part of this report are listed in the Exhibit Index.

26

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ENERGOUS CORPORATION
	(Registrant)
Date: May 10, 2016	By:	/s/ Stephen R. Rizzone
		Name: Stephen R. Rizzone
		Title: President, Chief Executive Officer and Director (Principal Executive Officer)
Date: May 10, 2016	By:	/s/ Brian Sereda
		Name:  Brian Sereda
		Title: Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

27

EXHIBIT INDEX

Exhibit Number	Description
3.1	Second Amended and Restated Certificate of Incorporation of Energous Corporation (incorporated by reference to Exhibit 3.1 to Amendment No. 1 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-193522) filed on March 13, 2014)
3.2	Amendment No. 1 to the Second Amended and Restated Certificate of Incorporation of Energous Corporation (incorporated by reference to Exhibit 3.2 to the Registrant’s Quarterly Report on Form 10-Q filed on May 14, 2014)
3.3	Amended and Restated Bylaws of Energous Corporation (incorporated by reference to Exhibit 3.1 to Amendment No. 1 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-193522) filed on March 13, 2014)
31.1	Certification of Periodic Report by Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14a and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2	Certification of Periodic Report by Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14a and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.1	Certification of Periodic Report by Chief Executive Officer and Chief Financial Officer pursuant to U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
101.INS	XBRL Instance Document (filed herewith)
101.SCH	XBRL Taxonomy Schema (filed herewith)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase (filed herewith)
101.DEF	XBRL Taxonomy Extension Definition Linkbase (filed herewith)
101.LAB	XBRL Taxonomy Extension Label Linkbase (filed herewith)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase (filed herewith)

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen R. Rizzone, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Energous Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 10, 2016

/s/ Stephen R. Rizzone

Name: Stephen R. Rizzone

Title: President, Chief Executive Officer and Director

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian Sereda, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Energous Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 10, 2016

/s/ Brian Sereda

Name: Brian Sereda

Title: Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Energous Corporation, (the “Company”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Stephen R. Rizzone, President and Chief Executive Officer of the Company, and Brian Sereda, Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Energous Corporation and will be retained by Energous Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Stephen R. Rizzone	/s/ Brian Sereda
Name:  Stephen R. Rizzone	Name:  Brian Sereda
Title:    President, Chief Executive Officer and Director	Title:    Vice President and Chief Financial Officer
Date:    May 10, 2016	Date:    May 10, 2016

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 05, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Entity Registrant Name	Energous Corp
Entity Central Index Key	0001575793
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	WATT
Entity Common Stock, Shares Outstanding		16,554,966

XML

CONDENSED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 23,710,666	$ 29,872,564
Prepaid expenses and other current assets	667,077	722,249
Prepaid rent, current	80,784	80,784
Total current assets	24,458,527	30,675,597
Property and equipment, net	1,658,631	1,730,365
Prepaid rent, non-current	198,040	218,236
Other assets	51,330	51,330
Total assets	26,366,528	32,675,528
Current liabilities:
Accounts payable	4,436,972	2,324,973
Accrued expenses	850,185	1,075,879
Deferred revenue	363,636	0
Total current liabilities	$ 5,650,793	$ 3,400,852
Commitments and contingencies
Stockholders’ equity
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at March 31, 2016 and December 31, 2015; no shares issued or outstanding	$ 0	$ 0
Common Stock, $0.00001 par value, 50,000,000 shares authorized at March 31, 2016 and December 31, 2015; 16,488,977 and 16,298,208 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively.	163	161
Additional paid-in capital	110,219,294	107,981,695
Accumulated deficit	(89,503,722)	(78,707,180)
Total stockholders’ equity	20,715,735	29,274,676
Total liabilities and stockholders’ equity	$ 26,366,528	$ 32,675,528

XML

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	16,488,977	16,298,208
Common stock, shares outstanding	16,488,977	16,298,208

XML

CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue	$ 136,364	$ 200,000
Operating expenses:
Research and development	7,674,093	4,275,565
Sales and marketing	807,067	1,043,894
General and administrative	2,455,612	1,812,141
Total operating expenses	10,936,772	7,131,600
Loss from operations	(10,800,408)	(6,931,600)
Other income:
Interest income	3,866	6,321
Total	3,866	6,321
Net loss	$ (10,796,542)	$ (6,925,279)
Basic and diluted loss per common share	$ (0.66)	$ (0.54)
Weighted average shares outstanding, basic and diluted	16,382,691	12,787,884

XML

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2015	$ 29,274,676	$ 161	$ 107,981,695	$ (78,707,180)
Balance (in shares) at Dec. 31, 2015		16,298,208
Stock-based compensation - stock options	423,062	$ 0	423,062	0
Stock-based compensation - restricted stock units ("RSUs")	1,223,096	0	1,223,096	0
Stock-based compensation - employee stock purchase plan ("ESPP")	62,937	0	62,937	0
Stock-based compensation - performance share units ("PSUs")	214,465	0	214,465	0
Stock-based compensation - deferred stock units ("DSUs")	29,974	0	29,974	0
Issuance of shares for RSUs	0	$ 1	(1)	0
Issuance of shares for RSUs (in shares)		132,630
Issuance of shares for PSUs	0	$ 0	0	0
Issuance of shares for PSUs (in shares)		13,768
Exercise of stock options	110,283	$ 1	110,282	0
Exercise of stock options (in shares)		44,290
Cashless exercise of warrants	0	$ 0	0	0
Cashless exercise of warrants (in shares)		81
Proceeds from contributions to the ESPP	173,784	$ 0	173,784	0
Net loss	(10,796,542)	0	0	(10,796,542)
Balance at Mar. 31, 2016	$ 20,715,735	$ 163	$ 110,219,294	$ (89,503,722)
Balance (in shares) at Mar. 31, 2016		16,488,977

XML

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (10,796,542)	$ (6,925,279)
Adjustments to reconcile net loss to:
Depreciation and amortization	192,104	191,219
Stock based compensation	1,953,534	1,679,221
Amortization of prepaid rent from stock issuance to landlord	20,196	20,196
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	55,172	(265,767)
Accounts payable	2,111,999	91,359
Accrued expenses	(225,694)	124,983
Deferred revenue	363,636	300,000
Net cash used in operating activities	(6,325,595)	(4,784,068)
Cash flows used in investing activities:
Purchases of property and equipment	(120,370)	(209,828)
Net cash used in investing activities	(120,370)	(209,828)
Cash flows from financing activities:
Proceeds from the exercise of stock options	110,283	0
Proceeds from contributions to employee stock purchase plan	173,784	0
Net cash provided by financing activities	284,067	0
Net decrease in cash and cash equivalents	(6,161,898)	(4,993,896)
Cash and cash equivalents - beginning	29,872,564	31,494,592
Cash and cash equivalents - ending	23,710,666	26,500,696
Stock Compensation Plan [Member]
Supplemental disclosure of non-cash financing activities:
Common stock issued	0	147,900
Restricted Stock Units (RSUs) [Member]
Supplemental disclosure of non-cash financing activities:
Common stock issued	$ 1	$ 1

XML

Business Organization, Nature of Operations

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 - Business Organization, Nature of Operations

Energous Corporation (the “Company”) was incorporated in Delaware on October 30, 2012. The Company is developing a technology called WattUp® that consists of proprietary semiconductor chipsets, software, hardware designs and antennas that can enable RF-based wire-free charging for electronic devices, providing power at a distance and ultimately enabling charging with mobility under full software control. The Company’s anticipated business model is to supply silicon components with reference designs and license our WattUp technology to device and chip manufacturers, wireless service providers and other commercial partners to make wire-free charging an affordable, ubiquitous and convenient option for end users. The Company believes its proprietary technology can potentially be utilized in a variety of devices, including wearables, Internet of Things (IoT) devices, smartphones, tablets, e-book readers, keyboards, mice, remote controls, rechargeable lights, cylindrical batteries and any other device with similar charging requirements that would otherwise need a battery or a connection to a power outlet.

The Company is developing solutions that charge electronic devices by surrounding them with a contained three dimensional (“3D”) radio frequency (“RF”) energy pocket (“RF energy pocket”). The Company is engineering solutions that are expected to enable the wire-free transmission of energy from multiple WattUp transmitters to multiple WattUp receiving devices within a range of up to fifteen (15) feet in radius or in a circular charging envelope of up to thirty (30) feet. The Company is also developing a transmitter technology to seamlessly mesh, (much like a network of WiFi routers) to form a wire-free charging network that will allow users to charge their devices as they walk from room-to-room or throughout a large space. To date, the Company has developed multiple transmitter prototypes in various form factors and power capabilities. The Company has also developed multiple receiver prototypes supporting smartphone battery cases, toys, fitness trackers, Bluetooth headsets, as well as stand-alone receivers.

XML

Liquidity and Management Plans

3 Months Ended

Mar. 31, 2016

Liquidity And Management Plan Disclosure [Abstract]

Liquidity And Management Plan Disclosure [Text Block]

Note 2 – Liquidity and Management Plans

During the three months ended March 31, 2016 and 2015, the Company recorded revenue of $136,364 and $200,000, respectively. During the three months ended March 31, 2016 and 2015, the Company recorded a net loss of $10,796,542 and $6,925,279, respectively. Net cash used in operating activities was $6,325,595 and $4,784,068 for the three months ended March 31, 2016 and 2015, respectively. The Company is currently meeting its liquidity requirements principally through the November 2015 sale of common stock pursuant to a shelf registration and payments received under product development projects entered into with a customer.

As of March 31, 2016, the Company had cash on hand of $23,710,666. On April 24, 2015, the Company filed a “shelf” registration statement on Form S-3, under which the Company may from time to time, sell any combination of debt or equity securities up to an aggregate of $75,000,000. In November 2015, the Company consummated an offering under the shelf registration of 3,000,005 shares of common stock through which the Company raised net proceeds of $19,048,456. The Company expects that cash on hand as of March 31, 2016, together with anticipated revenues, will be sufficient to fund the Company’s operations into the second quarter of 2017.

Research and development of new technologies is, by its nature, unpredictable.  Although the Company will undertake development efforts with commercially reasonable diligence, there can be no assurance that its available resources including the net proceeds from the Company’s IPO, secondary offering, issuance lender shelf registration, and strategic investor financing will be sufficient to enable it to develop and obtain regulatory approval of its technology to the extent needed to create future revenues sufficient to sustain its operations.  The Company may choose to pursue additional financing, depending upon the market conditions, which could include follow-on equity offerings, debt financing, co-development agreements or other alternatives. Should the Company choose to pursue additional financing, there is no assurance that the Company would be able to do so on terms that it would find acceptable.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 3 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).

These unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended December 31, 2015 included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2016.  The accounting policies used in preparing these unaudited condensed interim financial statements are consistent with those described in the December 31, 2015 audited financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements as well as the reported expenses during the reporting periods.

The Company’s significant estimates and assumptions include the valuation of stock-based compensation instruments, recognition of revenue, the useful lives of long-lived assets, and income tax expense. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Although the Company believes that its estimates and assumptions are reasonable, they are based upon information available at the time the estimates and assumptions were made. Actual results could differ from those estimates.

Reclassification

Certain amounts in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net loss.

Cash and Cash Equivalents

The Company considers all short-term, highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. The Company maintains cash balances that may be uninsured or in deposit accounts that exceed Federal Deposit Insurance Corporation limits. The Company maintains its cash deposits with major financial institutions.

Revenue Recognition

The Company recognizes revenue when the following criteria have been met: persuasive evidence of an arrangement exists, services have been rendered, collection of the revenue is reasonably assured, and the fees are fixed or determinable.

The Company records revenue associated with product development projects that it enters into with certain customers.  In general, these projects are associated with complex technology development, and as such the Company does not have certainty about its ability to achieve the program milestones. Achievement of the milestone is dependent on our performance and the milestone typically needs to be accepted by the customer. The payment associated with achieving the milestone is generally commensurate with the Company’s effort or the value of the deliverable and is nonrefundable. The Company records the expenses related to these projects, generally included in research and development expense, in the periods incurred.

The Company also receives nonrefundable payments, typically at the beginning of a customer relationship, for which there are no milestones. The Company recognizes this revenue ratably over the initial engineering product development period. The Company records the expenses related to these projects, generally included in research and development expense, in the periods incurred.

Research and Development

Research and development expenses are charged to operations as incurred. For internally developed patents, all patent application costs are expensed as incurred as research and development expense. Patent application costs, generally legal costs, are expensed as research and development costs until such time as the future economic benefits of such patents become more certain. The Company incurred research and development costs of $7,674,093 and $4,275,565 for the three months ended March 31, 2016 and 2015, respectively.

 

Stock-Based Compensation

The Company accounts for equity instruments issued to employees in accordance with accounting guidance that requires awards to be recorded at their fair value on the date of grant and are amortized over the vesting period of the award. The Company recognizes compensation costs on a straight line basis over the requisite service period of the award, which is typically the vesting term of the equity instrument issued.

On April 10, 2015, the Company’s board of directors approved the Energous Corporation Employee Stock Purchase Plan (the “ESPP”), under which 600,000 shares of common stock were reserved for purchase by the Company’s employees, subject to approval by the stockholders. On May 21, 2015, the Company’s stockholders approved the ESPP. Under the plan, employees may purchase a limited number of shares of the Company’s common stock at a 15% discount from the lower of the closing market prices measured on the first and last days of each half-year period. The Company recognizes compensation expense for the fair value of the purchase options, as measured on the grant date.

 

Income Taxes

Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. As of March 31, 2016, no liability for unrecognized tax benefits was required to be reported. The guidance also discusses the classification of related interest and penalties on income taxes. The Company’s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. No interest or penalties were recorded during three months ended March 31, 2016 and 2015.

Net (Loss) Income Per Common Share

Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants (using the treasury stock method), the vesting of restricted stock units (“RSUs”) and performance stock units (“PSUs”) and the enrollment of employees in the ESPP. The computation of diluted loss per share excludes potentially dilutive securities of 4,928,753 and 3,511,890 for the three months ended March 31, 2016 and 2015, respectively, because their inclusion would be antidilutive.

 

Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive.

	For the Three Months Ended March 31,
	2016		2015
Consulting Warrant to purchase common stock		146,079		278,228
Financing Warrant to purchase common stock		152,778		152,778
IPO Warrants to purchase common stock		460,000		460,000
IR Consulting Warrant		36,000		36,000
IR Incentive Warrant		15,000		15,000
Options to purchase common stock		1,443,495		1,607,075
RSUs		1,419,691		962,809
PSUs		1,191,845		-
DSUs		14,953		-
ESPP		48,912		-
Total potentially dilutive securities		4,928,753		3,511,890

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, "Revenue Recognition," and most industry-specific guidance. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The amendments in the ASU must be applied using one of two retrospective methods and are effective for annual and interim periods beginning after December 15, 2016. On July 9, 2015, the FASB modified ASU 2014-09 to be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. As modified, the FASB permits the adoption of the new revenue standard early, but not before the annual periods beginning after December 15, 2016. A public organization would apply the new revenue standard to all interim reporting periods within the year of adoption. The Company will evaluate the effects, if any, that adoption of this guidance will have on its financial statements.

In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under U.S. GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting.

The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, U.S. GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations.

In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015. The adoption of this standard did not have a material impact on the Company’s financial position and results of operations.

In August 2015, the FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” – Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015, which clarified the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. ASU 2015-15 has been adopted concurrently with the adoption of ASU 2015-03. The adoption of this standard did not have a material impact on the Company’s financial position and results of operations.

In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. ASU 2015-17 may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively. The Company is currently evaluating the impact this standard will have on its financial statements.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact the adoption of this new standard will have on its financial statements.

In January 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” (“ASU 2016-02”) This standard requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this new standard will have on its financial statements.

Management’s Evaluation of Subsequent Events

The Company evaluates events that have occurred after the balance sheet date of March 31, 2016, through the date which the financial statements are issued. Based upon the review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 4 – Commitments and Contingencies

Investor Relations Agreements

Effective January 13, 2014, the Company entered into an agreement with a vendor (“IR Firm”) to provide investor relations services to the Company. Pursuant to the agreement, in addition to monthly cash compensation of $8,000 per month, on March 27, 2014 the Company issued to the IR firm a consulting warrant (“IR Consulting Warrant”) for the purchase of 36,000 shares of common stock. The IR Consulting Warrant has a strike price of $7.80, representing 130% of the IPO price. The IR Consulting Warrant had an initial catch up vesting equivalent to 3,000 shares per month of service, partial months to be prorated on a thirty (30) day basis, from the effective date of this agreement until March 27, 2014. Thereafter, the IR Consulting Warrant vested at a rate of 3,000 shares per month of service. On February 26, 2015, the Company issued to the IR Firm incentive warrants (“IR Incentive Warrants”) to purchase 15,000 shares of common stock with a strike price of $7.80 based upon certain qualified investors and/or institutional or brokerage firms having purchased at least $250,000 in value of the Company’s common shares at the IPO price or greater in the open market on or after the 46 ^th day following March 27, 2014. All IR Incentive Warrants granted during a six month period will collectively vest at each six month anniversary. Both the IR Consulting Warrant and IR Incentive Warrants will have an expiration date four (4) years from the grant date. The shares underlying both the IR Consulting Warrant and the IR Incentive Warrants may be exercised on a cashless basis if at the time of exercise, such warrant shares have not been registered.

As of March 31, 2015, all 36,000 shares under the IR Consulting Warrant were vested. The Company incurred stock-based compensation expense of $0 and $7,522 for the three months ended March 31, 2016 and 2015, respectively, in connection with the IR Consulting Warrant, which was included in general and administrative expense.

On February 4, 2015, the Company entered into a six month consulting agreement with a consultant to provide the Company with investor relations services. Compensation under the agreement included the Company’s issuance on February 26, 2015, of 15,000 shares of common stock valued at $147,900 and monthly cash payments of $5,000. The total value of the common stock compensation was recorded as a prepaid expense and was being amortized over the six month contract period. The contract was renewed for an additional six month period starting in August 2015 for $25,000. This initial fee was amortized over the six month renewal period, plus monthly cash payments of $5,000 were made during the renewal period. The Company incurred amortization expense of $6,250 and $36,975 during the three months ended March 31, 2016 and 2015, which was included in general and administrative expense.

Operating Leases

On September 10, 2014, the Company entered into a Lease Agreement (the “Lease”) with Balzer Family Investments, L.P. (the “Landlord”) related to space located at Northpointe Business Center, 3590 North First Street, San Jose, California. The initial term of the lease is 60 months, with initial monthly base rent of $36,720 and the lease is subject to certain annual escalations as defined in the agreement. On October 1, 2014, the Company relocated its headquarters to this new location.  The Company issued to the Landlord 41,563 shares of the Company’s common stock valued at $500,000, of which $400,000 will be applied to reduce the Company’s monthly base rent obligation by $6,732 per month and of which $100,000 was for certain tenant improvements. The Company recorded $400,000 as prepaid rent on its balance sheet, which is being amortized over the term of the lease and recorded $100,000 as leasehold improvements.

On February 26, 2015, the Company entered into a sub-lease agreement for additional space in the San Jose area. The agreement has a term which expires on June 30, 2019 and an initial monthly rent of $6,109 per month. On August 25, 2015 the Company entered into an additional amended sub-lease agreement for additional space in San Jose, CA. The agreement has a term which expires on June 30, 2019 and an initial monthly rent of $4,314 per month. These leases are subject to certain annual escalations as defined in the agreements.

On July 9, 2015, the Company entered into a sub-lease agreement for additional space in Costa Mesa, CA. The agreement has a term which expires on September 30, 2017 and a monthly rent of $6,376 per month.

The future minimum lease payments for leased locations are as follows:

For the Years Ended December 31,	Amount
2016 (Nine Months)	$	399,017
2017		572,722
2018		530,531
2019		372,652
Total	$	1,874,922

Development and Licensing Agreement

Effective January 28, 2015, the Company signed a development and licensing agreement with a consumer electronics company to embed WattUp wire-free charging receiver technology in various products including, but not limited to certain mobile consumer electronics and related accessories. During the development phase and through customer shipment of its first product, Energous will afford this customer an exclusive “time to market advantage” in the licensed product categories.

This development and licensing agreement contains both invention and development milestones that the Company will need to achieve during the next two years. Pursuant to the Agreement, on March 23, 2015, the Company received an initial non-refundable payment of $500,000. During the three months ended March 31, 2015, the Company recognized $200,000 of this payment as revenue and fully recognized the $500,000 payment as revenue during the year ended December 31, 2015. The agreement provides for additional amounts to be received by the Company based upon its achievement of certain milestones. During the year ended December 31, 2015, the Company recognized revenue of $2,000,000 upon the achievement of milestones under the agreement.

Effective April 3, 2015, the Company entered into an amendment of the development and license agreement with this consumer electronics company to include joint development of wire-free transmitter technology and technology license back to the Company. On June 5, 2015, the Company entered into a second amendment of the development and license agreement with this consumer electronics company to conform the agreement for technical changes in the product delivery milestones. Effective October 1, 2015, the Company entered into a third amendment of the development and license agreement with this consumer electronics company to make certain changes to, among other things, intellectual property ownership, payment terms and the products covered by the agreement. On March 31, 2016, the Company received payment of $500,000 pursuant to the February 15, 2016 commencement of the second phase described in the third amendment, of which the Company recorded $136,364 in revenue during the three months ended March 31, 2016.

Hosted Design Solution Agreement

On June 25, 2015, the Company entered into a three-year agreement to license electronic design automation software in a hosted environment. Pursuant to the agreement, under which services began July 13, 2015, the Company is required to remit quarterly payments in the amount of $100,568 with the last payment due March 30, 2018. On December 18, 2015, the agreement was amended to redefine the hardware and software configuration and the quarterly payments increased to $198,105.

Amended Employee Agreement – Stephen Rizzone

On April 3, 2015, the Company entered into an Amended and Restated Executive Employment Agreement with Stephen R. Rizzone, the Company’s President and Chief Executive Officer (the “Employment Agreement”).

The Employment Agreement has an effective date of January 1, 2015 and an initial term of four years (the “Initial Employment Period”). The Employment Agreement provides for an annual base salary of $365,000, and Mr. Rizzone is eligible to receive quarterly cash bonuses with a total target amount equal to 100% of his base salary based upon achievement of performance-based objectives established by the Company’s board of directors.

Pursuant to Mr. Rizzone’s prior employment agreement, on December 12, 2013 Mr. Rizzone was granted a ten year option to purchase 275,689 shares of common stock at an exercise price of $1.68 vesting over four years in 48 monthly installments beginning October 1, 2013 (the “First Option”). Mr. Rizzone was also granted a second option award to purchase 496,546 shares of common stock at an exercise price of $6.00 (the “Second Option”). The Second Option vests over the same vesting schedule as the First Option.

Effective with the approval on May 21, 2015 by the Company’s stockholders of its new performance-based equity plan, the Employment Agreement provided and Mr. Rizzone received, a grant of 639,075 Performance Share Units (the “PSUs”). The PSUs, which represent the right to receive shares of common stock, shall be earned based on the Company’s achievement of market capitalization growth between the effective date of the Employment Agreement and the end of the Initial Employment Period. If the Company’s market capitalization is $100 million or less, no PSUs will be earned. If the Company reaches a market capitalization of $1.1 billion or more, 100% of the PSUs will be earned. For market capitalization between $100 million and $1.1 billion, the percentage of PSUs earned will be determined on a quarterly basis based on straight line interpolation. PSUs earned as of the end of a calendar quarter will be paid 50% immediately and 50% will be deferred until the end of the Initial Employment Period subject to Mr. Rizzone’s continued employment with the Company (See Note 6).

Mr. Rizzone is also eligible to receive all customary and usual benefits generally available to senior executives of the Company.

The Employment Agreement provides that if Mr. Rizzone’s employment is terminated due to his death or disability, if Mr. Rizzone’s employment is terminated by the Company without cause or if he resigns for good reason, twenty-five percent (25%) of the shares subject to the First Option and the Second Option shall immediately vest and become exercisable, he will have a period of one year post-termination to exercise the First Option and the Second Option, and if a Liquidation Event (as defined in the Employment Agreement) shall occur prior to the termination of the First Option and the Second Option, one hundred percent (100%) of the shares subject to the First Option and Second Option shall immediately vest and become exercisable effective immediately prior to the consummation of the Liquidation Event. In addition, any outstanding deferred PSUs shall be immediately vested and paid, but any remaining unearned portion of the PSUs shall immediately be canceled and forfeited.

Offer Letter – Brian Sereda

Effective July 13, 2015, the Company appointed Brian Sereda to serve as Vice President and Chief Financial Officer, replacing Interim Chief Financial Officer Howard Yeaton.

In connection with Mr. Sereda’s appointment as Vice President and Chief Financial Officer, the Company and Mr. Sereda executed an offer letter effective July 13, 2015 (the “Sereda Offer Letter”). Under the Sereda Offer Letter, Mr. Sereda will receive an annual base salary of $250,000 per year, and is eligible to earn an annual performance bonus of up to 75% of his then current base salary in accordance with performance objectives established by the Company’s independent compensation committee or the Board of Directors. In addition, under the Sereda Offer Letter and as an inducement to join the Company, Mr. Sereda received an inducement restricted stock unit award covering a total of 120,000 shares of common stock. This restricted stock unit award vests over a period of four years in four equal annual installments on July 13 of each of 2016, 2017, 2018 and 2019, subject to Mr. Sereda’s continued employment with the Company through each vesting date.

In the event Mr. Sereda is terminated without cause, he is entitled to (1) six months of his then-current base salary and (2) payment of COBRA premiums for up to six months. In the event of a liquidation event and termination of employment, except for cause, 100% of the inducement award shall immediately vest.

Consulting Arrangement

On October 5, 2015, George B. Holmes resigned as Chief Commercial Officer of the Company. Mr. Holmes provided consulting services to the Company pursuant to a six month consulting agreement pursuant to which he received consulting fees totaling $80,000. In connection with the consulting arrangement, Mr. Holmes was permitted to extend the exercise period for an option to purchase 80,201 shares of the Company’s common stock at an exercise price of $2.49 per share and an aggregate of 44,836 RSUs would be allowed to vest pursuant to their terms.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2016

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

Note 5 – Stockholders’ Equity

Authorized Capital

The holders of the Company’s common stock are entitled to one vote per share. Holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the board of directors out of legally available funds. Upon the liquidation, dissolution or winding up of the Company, holders of common stock are entitled to share ratably in all assets of the Company that are legally available for distribution.

Disgorgement of short swing profits

On April 11, 2015, $12,611 of proceeds was received from an officer of the Company who had purchased shares in the December 2014 secondary offering representing the disgorgement of a short swing profit on the officer’s April 2015 sale of the Company’s stock.

Filing of registration statement

On April 24, 2015, the Company filed a “shelf” registration statement on Form S-3, which became effective on April 30, 2015. The “shelf” registration statement allows the Company from time to time to sell any combination of debt or equity securities described in the registration statement up to aggregate proceeds of $75,000,000.

Pursuant to the shelf registration, on November 17, 2015, the Company consummated an offering of 3,000,005 shares of common stock at $6.90 per share and received from the underwriters’ net proceeds of $19,333,032 (net of underwriters’ discount of $1,242,002 and underwriters’ offering expenses of $125,000). The Company incurred additional offering expenses of $284,576, yielding net proceeds from the offering under shelf registration of $19,048,456.

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Stock Based Compensation

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 6 – Stock Based Compensation

Equity Incentive Plans

2013 Equity Incentive Plan

In December 2013 the Company’s board and stockholders approved the “2013 Equity Incentive Plan”, providing for the issuance of equity based instruments covering up to an initial total of 1,042,167 shares of common stock. Effective on March 27, 2014, the aggregate total shares which may be issued under the 2013 Equity Incentive Plan were increased to 2,335,967, as described below.

Effective on March 10, 2014, the Company’s board of directors and stockholders approved the First Amendment to the 2013 Equity Incentive Plan which provided for an increase in the aggregate number of shares of common stock that may be issued pursuant to the Plan to equal 18% of the total number of shares of common stock outstanding immediately following the completion of the IPO (assuming for this purpose the issuance of all shares issuable under the Company’s equity plans, the conversion into common stock of all outstanding securities that are convertible by their terms into common stock and the exercise of all options and warrants exercisable for shares of common stock and including shares and warrants issued to the underwriters for such IPO upon exercise of its over-allotment options).

As of March 31, 2016, 188,627 shares of common stock remain eligible to be issued through equity-based instruments under the 2013 Equity Incentive Plan.

2014 Non-Employee Equity Compensation Plan

On March 6, 2014, the Company’s board of directors and stockholders approved the 2014 Non-Employee Equity Compensation Plan for the issuance of equity-based instruments covering up to 250,000 shares of common stock to directors and other non-employees.

As of March 31, 2016, 69,939 shares of common stock remain eligible to be issued through equity-based instruments under the 2014 Non-Employee Equity Compensation Plan.

2015 Performance Share Unit Plan

On April 10, 2015, the Company’s board of directors approved the Energous Corporation 2015 Performance Share Unit Plan (the “Performance Share Plan”), under which 1,310,104 shares of common stock became available for issuance as PSUs to a select group of employees and directors, subject to approval by the stockholders. On May 21, 2015 the Company’s stockholders approved the Performance Share Plan.

As of March 31, 2016, 31,951 shares of common stock remain eligible to be issued through equity based instruments under the Performance Share Unit Plan.

 

Employee Stock Purchase Plan

On April 10, 2015, the Company’s board of directors approved the ESPP, under which 600,000 shares of common stock have been reserved for purchase by the Company’s employees, subject to approval by the stockholders. On May 21, 2015, the Company’s stockholders approved the ESPP. Employees may designate an amount not less than 1% but not more than 10% of their annual compensation, but for not more than 7,500 shares during an offering period. An offering period shall be six months in duration commencing on or about January 1 and July 1 of each year. The exercise price of the option will be the lesser of 85% of the fair market of the common stock on the first business day of the offering period and 85% of the fair market value of the common stock on the applicable exercise date.

As of March 31, 2016, 553,977 shares of common stock remain eligible to be issued through equity based instruments under the ESPP. As of March 31, 2016, eligible employees have contributed $173,784 through payroll withholdings to the ESPP for the current eligibility period. On June 30, 2016, an estimated total of 48,912 shares will be delivered to the participating employees.

 

Stock Option Award Activity

The following is a summary of the Company’s stock option activity during the three months ended March 31, 2016:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Life In Years		Intrinsic Value
Outstanding at January 1, 2016		1,487,785	$	4.43	$	8.0	$	5,310,340
Granted		-		-		-		-
Exercised		(44,290)		2.49		-		-
Forfeited		-		-		-		-
Outstanding at March 31, 2016		1,443,495	$	4.40	$	7.9	$	8,234,898
Exercisable at January 1, 2016		860,970	$	4.34	$	8.0	$	3,076,767
Vested		87,242		4.35		-		-
Exercised		(44,290)		2.49		-		-
Forfeited		-		-		-		-
Exercisable at March 31, 2016		903,922	$	4.43	$	7.9	$	5,129,844

As of March 31, 2016, the unamortized value of options was $1,395,794. As of March 31, 2016, the unamortized portion will be expensed over a weighted average period of 1.5 years.

 

Restricted Stock Units (“RSUs”)

On January 4, 2016, the compensation committee of the board of directors granted to various directors, RSUs under which the holders have the right to receive an aggregate of 26,916 shares of the Company’s common stock. These awards were granted under the 2014 Non-Employee Equity Compensation Plan. The awards granted vest fully on the first anniversary of the grant date.

On January 4, 2016, the compensation committee of the board of directors granted to John Gaulding, director and chairman of the board, RSUs under the 2014 Non-Employee Equity Compensation Plan for which Mr. Gaulding has the right to receive 25,000 shares of the Company’s common stock. These shares were issued to Mr. Gaulding in connection with his role as an independent director and chairman of the Board of Directors. The award granted vests fully on the first anniversary of the grant date.

On March 4, 2016, the compensation committee of the board of directors granted an employee inducement RSU awards under which the holder has the right to receive an aggregate of 12,500 shares of the Company’s common stock. The award granted vests over four years beginning on the first anniversary of the date of hire and is contingent upon meeting certain job performance milestones.

The Company accounts for RSUs granted to consultants using the accounting guidance included in ASC 505-50 “Equity-Based Payments to Non-Employees” (“ASC 505-50”). In accordance with ASC 505-50, the Company estimates the fair value of the unvested portion of the RSU award each reporting period using the closing price of the Company’s common stock.

At March 31, 2016, the unamortized value of the RSUs was $10,881,355. The unamortized amount will be expensed over a weighted average period of 2.9 years. A summary of the activity related to RSUs for the three months ended March 31, 2016 is presented below:

	Total		Weighted Average Grant Date Fair Value
Outstanding at January 1, 2016		1,560,996	$	8.83
RSUs granted		64,416	$	8.11
RSUs forfeited		(15,079)	$	7.86
RSUs vested		(190,642)	$	9.98
Outstanding at March 31, 2016		1,419,691	$	8.65
Vested at January 1, 2016		7,800	$	7.94
RSUs vested		190,642	$	9.98
Shares of common stock issued in exchange for RSUs		(132,630)	$	9.82
Vested at March 31, 2016		65,812	$	10.07

Performance Share Units (“PSUs”)

PSUs shall be earned based on the Company’s achievement of market capitalization growth between the effective date of the Employment Agreement and the end of the Initial Employment Period. If the Company’s market capitalization is $100 million or less, no PSUs will be earned. If the Company reaches a market capitalization of $1.1 billion or more, 100% of the PSUs will be earned. For market capitalization between $100 million and $1.1 billion, the percentage of PSUs earned will be determined on a quarterly basis based on straight line interpolation.

On March 4, 2016, the compensation committee of the board of directors granted an executive inducement PSUs under which the executive is eligible to receive 63,908 shares of the Company’s common stock.

The Company determined that the PSUs were equity awards with both market and service conditions. The Company utilized a Monte Carlo simulation to determine the fair value of the market condition, as described above. Grantees of PSUs are required to be employed through December 31, 2018 in order to earn the entire award, if and when vested.

	Performance Share Units (PSUs) Granted During the Three Months Ended March 31, 2016
Market capitalization	$	136,888,114
Dividend yield		0	%
Expected volatility		60	%
Risk-free interest rate		0.95	%

The fair value of the grant of PSUs to purchase a total of 1,342,061 shares of common stock (including 1,278,153 PSUs granted under the 2015 Performance Share Unit Plan and 63,908 granted as an inducement) was determined to be approximately $3,518,921, and is to be amortized over the service period of May 21, 2015 through December 31, 2018, on a straight-line basis. Amortization was $214,465 and $0 for the three months ended March 31, 2016 and 2015, respectively.

At March 31, 2016, the unamortized value of the PSUs was approximately $2,480,387. The unamortized amount will be expensed over a weighted average period of 2.8 years. A summary of the activity related to PSUs for the three months ended March 31, 2016 is presented below:

			Weighted
			Average Grant
	Total		Date Fair Value
Outstanding at January 1, 2016		1,135,614	$	2.62
PSUs granted		63,908	$	2.62
PSUs forfeited		-	$	-
PSUs vested		(7,677)	$	2.62
Outstanding at March 31, 2016		1,191,845	$	2.62
Vested at January 1, 2016		13,768	$	2.62
PSUs vested		7,677	$	2.62
PSUs forfeited		-	$	-
Shares of common stock issued in exchange for PSUs		(13,768)	$	2.62
Vested at March 31, 2016		7,677	$	2.62

Deferred Stock Units (“DSUs”)

On January 4, 2016, the compensation committee of the board of directors granted to John Gaulding, director and chairman of the board, DSUs under the 2014 Non-Employee Equity Compensation Plan for which Mr. Gaulding has the right to receive 14,953 shares of the Company’s common stock. These shares were issued to Mr. Gaulding in lieu of $125,000 of his anticipated compensation for his services on the board, including $75,000 worth of RSUs and $50,000 of his regular board stipends. The award granted vests fully on the first anniversary of the grant date.

At March 31, 2016, the unamortized value of the DSUs was $95,033. The unamortized amount will be expensed over a weighted average period of 0.8 years. A summary of the activity related to RSUs for the three months ended March 31, 2016 is presented below:

			Weighted
			Average Grant
	Total		Date Fair Value
Outstanding at January 1, 2016		-	$	-
DSUs granted		14,953	$	8.36
DSUs forfeited		-	$	-
DSUs vested		-	$	-
Outstanding at March 31, 2016		14,953	$	8.36

There were no DSUs vested as of March 31, 2016.

Employee Stock Purchase Plan (“ESPP”)

The current offering period for the ESPP is January 1, 2016 through June 30, 2016. On January 1, 2016 employees enrolled in the ESPP agreed to have withheld up to approximately $347,569. If all participants exercised their option under the ESPP, approximately 48,912 shares would be issued on June 30, 2016. Through March 31, 2016, employees have contributed an aggregate of $173,784. As of March 31, 2016, 46,023 shares have been issued under this plan, with 553,977 shares reserved for future issuance.

The weighted-average grant-date fair value of the purchase option for each designated share purchased under this plan was approximately $2.57, which represents the fair value of the option, consisting of three main components: (i) the value of the discount on the enrollment date, (ii) the proportionate value of the call option for 85% of the stock and (iii) the proportionate value of the put option for 15% of the stock. The Company recognized compensation expense for the plan of $62,937 and $0 for the three months ended March 31, 2016 and 2015, respectively.

The Company estimated the fair value of options granted during the three months ended March 31, 2016 using the Black-Scholes option pricing model. The fair values of stock options granted were estimated using the following assumptions:

	Options Granted
	During the Three
	Months Ended March
	31, 2016
Stock price	$	8.36
Dividend yield		0	%
Expected volatility		56	%
Risk-free interest rate		0.49	%
Expected life		6 months

Stock-Based Compensation Expense

The following tables summarize total stock-based compensation costs recognized for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016		2015
Stock options	$	423,062	$	259,515
RSUs		1,223,096		1,333,875
IR warrants		-		85,831
PSUs		214,465		-
ESPP		62,937		-
DSUs		29,974		-
Total	$	1,953,534	$	1,679,221

The total amount of stock-based compensation was reflected within the statements of operations as:

	Three Months Ended March 31,
	2016		2015
Research and development	$	910,843	$	1,034,318
Sales and marketing		56,317		201,256
General and administrative		986,374		443,647
Total	$	1,953,534	$	1,679,221

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Related Party

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 7 – Related Party

On July 14, 2014, the Company’s Board of Directors appointed Howard Yeaton as the Company’s Interim Chief Financial Officer. On July 13, 2015, the Company appointed Brian Sereda as the Company’s Chief Financial Officer (See Note 4), replacing Interim Chief Financial Officer Howard Yeaton. Howard Yeaton is the Managing Principal of Financial Consulting Strategies LLC (“FCS”). During the three months ended March 31, 2016 and 2015, the Company incurred fees to FCS of $0 and $25,963, respectively, in connection with Mr. Yeaton’s services as Interim Chief Financial Officer and $10,631 and $26,257, respectively, for other financial advisory and accounting services provided by FCS.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).

These unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended December 31, 2015 included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2016.  The accounting policies used in preparing these unaudited condensed interim financial statements are consistent with those described in the December 31, 2015 audited financial statements.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements as well as the reported expenses during the reporting periods.

The Company’s significant estimates and assumptions include the valuation of stock-based compensation instruments, recognition of revenue, the useful lives of long-lived assets, and income tax expense. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Although the Company believes that its estimates and assumptions are reasonable, they are based upon information available at the time the estimates and assumptions were made. Actual results could differ from those estimates.

Reclassification, Policy [Policy Text Block]

Reclassification

Certain amounts in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net loss.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all short-term, highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. The Company maintains cash balances that may be uninsured or in deposit accounts that exceed Federal Deposit Insurance Corporation limits. The Company maintains its cash deposits with major financial institutions.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company recognizes revenue when the following criteria have been met: persuasive evidence of an arrangement exists, services have been rendered, collection of the revenue is reasonably assured, and the fees are fixed or determinable.

The Company records revenue associated with product development projects that it enters into with certain customers.  In general, these projects are associated with complex technology development, and as such the Company does not have certainty about its ability to achieve the program milestones. Achievement of the milestone is dependent on our performance and the milestone typically needs to be accepted by the customer. The payment associated with achieving the milestone is generally commensurate with the Company’s effort or the value of the deliverable and is nonrefundable. The Company records the expenses related to these projects, generally included in research and development expense, in the periods incurred.

The Company also receives nonrefundable payments, typically at the beginning of a customer relationship, for which there are no milestones. The Company recognizes this revenue ratably over the initial engineering product development period. The Company records the expenses related to these projects, generally included in research and development expense, in the periods incurred.

Research and Development Expense, Policy [Policy Text Block]

Research and Development

Research and development expenses are charged to operations as incurred. For internally developed patents, all patent application costs are expensed as incurred as research and development expense. Patent application costs, generally legal costs, are expensed as research and development costs until such time as the future economic benefits of such patents become more certain. The Company incurred research and development costs of $7,674,093 and $4,275,565 for the three months ended March 31, 2016 and 2015, respectively.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

The Company accounts for equity instruments issued to employees in accordance with accounting guidance that requires awards to be recorded at their fair value on the date of grant and are amortized over the vesting period of the award. The Company recognizes compensation costs on a straight line basis over the requisite service period of the award, which is typically the vesting term of the equity instrument issued.

On April 10, 2015, the Company’s board of directors approved the Energous Corporation Employee Stock Purchase Plan (the “ESPP”), under which 600,000 shares of common stock were reserved for purchase by the Company’s employees, subject to approval by the stockholders. On May 21, 2015, the Company’s stockholders approved the ESPP. Under the plan, employees may purchase a limited number of shares of the Company’s common stock at a 15% discount from the lower of the closing market prices measured on the first and last days of each half-year period. The Company recognizes compensation expense for the fair value of the purchase options, as measured on the grant date.

Income Tax, Policy [Policy Text Block]

Income Taxes

Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. As of March 31, 2016, no liability for unrecognized tax benefits was required to be reported. The guidance also discusses the classification of related interest and penalties on income taxes. The Company’s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. No interest or penalties were recorded during three months ended March 31, 2016 and 2015.

Earnings Per Share, Policy [Policy Text Block]

Net (Loss) Income Per Common Share

Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants (using the treasury stock method), the vesting of restricted stock units (“RSUs”) and performance stock units (“PSUs”) and the enrollment of employees in the ESPP. The computation of diluted loss per share excludes potentially dilutive securities of 4,928,753 and 3,511,890 for the three months ended March 31, 2016 and 2015, respectively, because their inclusion would be antidilutive.

 

Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive.

	For the Three Months Ended March 31,
	2016		2015
Consulting Warrant to purchase common stock		146,079		278,228
Financing Warrant to purchase common stock		152,778		152,778
IPO Warrants to purchase common stock		460,000		460,000
IR Consulting Warrant		36,000		36,000
IR Incentive Warrant		15,000		15,000
Options to purchase common stock		1,443,495		1,607,075
RSUs		1,419,691		962,809
PSUs		1,191,845		-
DSUs		14,953		-
ESPP		48,912		-
Total potentially dilutive securities		4,928,753		3,511,890

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, "Revenue Recognition," and most industry-specific guidance. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The amendments in the ASU must be applied using one of two retrospective methods and are effective for annual and interim periods beginning after December 15, 2016. On July 9, 2015, the FASB modified ASU 2014-09 to be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. As modified, the FASB permits the adoption of the new revenue standard early, but not before the annual periods beginning after December 15, 2016. A public organization would apply the new revenue standard to all interim reporting periods within the year of adoption. The Company will evaluate the effects, if any, that adoption of this guidance will have on its financial statements.

In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under U.S. GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting.

The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, U.S. GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations.

In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015. The adoption of this standard did not have a material impact on the Company’s financial position and results of operations.

In August 2015, the FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” – Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015, which clarified the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. ASU 2015-15 has been adopted concurrently with the adoption of ASU 2015-03. The adoption of this standard did not have a material impact on the Company’s financial position and results of operations.

In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted. ASU 2015-17 may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively. The Company is currently evaluating the impact this standard will have on its financial statements.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact the adoption of this new standard will have on its financial statements.

In January 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” (“ASU 2016-02”) This standard requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this new standard will have on its financial statements.

Subsequent Events, Policy [Policy Text Block]

Management’s Evaluation of Subsequent Events

The Company evaluates events that have occurred after the balance sheet date of March 31, 2016, through the date which the financial statements are issued. Based upon the review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive.

	For the Three Months Ended March 31,
	2016		2015
Consulting Warrant to purchase common stock		146,079		278,228
Financing Warrant to purchase common stock		152,778		152,778
IPO Warrants to purchase common stock		460,000		460,000
IR Consulting Warrant		36,000		36,000
IR Incentive Warrant		15,000		15,000
Options to purchase common stock		1,443,495		1,607,075
RSUs		1,419,691		962,809
PSUs		1,191,845		-
DSUs		14,953		-
ESPP		48,912		-
Total potentially dilutive securities		4,928,753		3,511,890

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2016

Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

The future minimum lease payments for leased locations are as follows:

For the Years Ended December 31,	Amount
2016 (Nine Months)	$	399,017
2017		572,722
2018		530,531
2019		372,652
Total	$	1,874,922

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Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following is a summary of the Company’s stock option activity during the three months ended March 31, 2016:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Life In Years		Intrinsic Value
Outstanding at January 1, 2016		1,487,785	$	4.43	$	8.0	$	5,310,340
Granted		-		-		-		-
Exercised		(44,290)		2.49		-		-
Forfeited		-		-		-		-
Outstanding at March 31, 2016		1,443,495	$	4.40	$	7.9	$	8,234,898
Exercisable at January 1, 2016		860,970	$	4.34	$	8.0	$	3,076,767
Vested		87,242		4.35		-		-
Exercised		(44,290)		2.49		-		-
Forfeited		-		-		-		-
Exercisable at March 31, 2016		903,922	$	4.43	$	7.9	$	5,129,844

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

A summary of the activity related to RSUs for the three months ended March 31, 2016 is presented below:

	Total		Weighted Average Grant Date Fair Value
Outstanding at January 1, 2016		1,560,996	$	8.83
RSUs granted		64,416	$	8.11
RSUs forfeited		(15,079)	$	7.86
RSUs vested		(190,642)	$	9.98
Outstanding at March 31, 2016		1,419,691	$	8.65
Vested at January 1, 2016		7,800	$	7.94
RSUs vested		190,642	$	9.98
Shares of common stock issued in exchange for RSUs		(132,630)	$	9.82
Vested at March 31, 2016		65,812	$	10.07

Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block]

The Company determined that the PSUs were equity awards with both market and service conditions. The Company utilized a Monte Carlo simulation to determine the fair value of the market condition, as described above. Grantees of PSUs are required to be employed through December 31, 2018 in order to earn the entire award, if and when vested.

	Performance Share Units (PSUs) Granted During the Three Months Ended March 31, 2016
Market capitalization	$	136,888,114
Dividend yield		0	%
Expected volatility		60	%
Risk-free interest rate		0.95	%

Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block]

A summary of the activity related to PSUs for the three months ended March 31, 2016 is presented below:

			Weighted
			Average Grant
	Total		Date Fair Value
Outstanding at January 1, 2016		1,135,614	$	2.62
PSUs granted		63,908	$	2.62
PSUs forfeited		-	$	-
PSUs vested		(7,677)	$	2.62
Outstanding at March 31, 2016		1,191,845	$	2.62
Vested at January 1, 2016		13,768	$	2.62
PSUs vested		7,677	$	2.62
PSUs forfeited		-	$	-
Shares of common stock issued in exchange for PSUs		(13,768)	$	2.62
Vested at March 31, 2016		7,677	$	2.62

Share Based Compensation Deferred Stock Units Activity [Table Text Block]

A summary of the activity related to RSUs for the three months ended March 31, 2016 is presented below:

			Weighted
			Average Grant
	Total		Date Fair Value
Outstanding at January 1, 2016		-	$	-
DSUs granted		14,953	$	8.36
DSUs forfeited		-	$	-
DSUs vested		-	$	-
Outstanding at March 31, 2016		14,953	$	8.36

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The Company estimated the fair value of options granted during the three months ended March 31, 2016 using the Black-Scholes option pricing model. The fair values of stock options granted were estimated using the following assumptions:

	Options Granted
	During the Three
	Months Ended March
	31, 2016
Stock price	$	8.36
Dividend yield		0	%
Expected volatility		56	%
Risk-free interest rate		0.49	%
Expected life		6 months

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

The following tables summarize total stock-based compensation costs recognized for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016		2015
Stock options	$	423,062	$	259,515
RSUs		1,223,096		1,333,875
IR warrants		-		85,831
PSUs		214,465		-
ESPP		62,937		-
DSUs		29,974		-
Total	$	1,953,534	$	1,679,221

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

The total amount of stock-based compensation was reflected within the statements of operations as:

	Three Months Ended March 31,
	2016		2015
Research and development	$	910,843	$	1,034,318
Sales and marketing		56,317		201,256
General and administrative		986,374		443,647
Total	$	1,953,534	$	1,679,221

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Liquidity and Management Plans (Details Textual) - USD ($)	1 Months Ended			3 Months Ended
	Nov. 30, 2015	Nov. 17, 2015	Apr. 24, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Liquidity And Management Plans [Line Items]
Engineering product development				$ 136,364	$ 200,000
Net income (numerator for basic and diluted earnings per share)				(10,796,542)	(6,925,279)
Cash and Cash Equivalents, at Carrying Value, Total				23,710,666	26,500,696	$ 29,872,564	$ 31,494,592
Stock Issued During Period, Shares, New Issues	3,000,005
Proceeds From Shelf Registration Debt Or Equity Securities			$ 75,000,000
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total				$ (6,325,595)	$ (4,784,068)
Consummation of Offering Under Shelf Registration [Member]
Liquidity And Management Plans [Line Items]
Stock Issued During Period, Shares, New Issues		3,000,005
Proceeds from Issuance of Common Stock	$ 19,048,456	$ 19,333,032
Proceeds From Shelf Registration Debt Or Equity Securities			$ 75,000,000

XML

Summary of Significant Accounting Policies (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	4,928,753	3,511,890
Consulting Warrant [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	146,079	278,228
Financing Warrant [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	152,778	152,778
IPO Warrants [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	460,000	460,000
IR Consulting Warrant [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	36,000	36,000
IR Incentive Warrant [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	15,000	15,000
Stock Option [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	1,443,495	1,607,075
Restricted Stock Units (RSUs) [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	1,419,691	962,809
Phantom Share Units (PSUs) [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	1,191,845	0
DSUs [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	14,953	0
ESPP [Member]
Summary Of Significant Accounting Policies [Line Items]
Potentially dilutive securities	48,912	0

XML

Summary of Significant Accounting Policies (Details Textual) - USD ($)		3 Months Ended
	Apr. 10, 2015	Mar. 31, 2016	Mar. 31, 2015
Summary Of Significant Accounting Policies [Line Items]
Research and Development Expense, Total		$ 7,674,093	$ 4,275,565
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		4,928,753	3,511,890
Employee Stock Purchase Plan [Member]
Summary Of Significant Accounting Policies [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	600,000	553,977
Common Stock Purchase Price Discount Percentage	15.00%

XML

Commitments and Contingencies (Details)	Mar. 31, 2016 USD ($)
Commitments and Contingencies [Line Items]
2016 (Nine Months)	$ 399,017
2017	572,722
2018	530,531
2019	372,652
Total	$ 1,874,922

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Commitments and Contingencies (Details Textual) - USD ($)					1 Months Ended					3 Months Ended		12 Months Ended
	Oct. 05, 2015	Jul. 13, 2015	Jul. 09, 2015	Sep. 10, 2014	Dec. 18, 2015	Jun. 25, 2015	May. 21, 2015	Mar. 23, 2015	Feb. 26, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Commitments and Contingencies [Line Items]
Investor Relations Agreement, Initiation Date										Jan. 13, 2014
Stock based compensation expense										$ 1,953,534	$ 1,679,221
Operating Leases, Rent Expense			$ 6,376
Cash Compensation For Services Received Per Month 1										$ 8,000
Payments for Tenant Improvements				$ 100,000
Operating Leases, Rent Expense, Net									$ 4,314
Operating Leases, Rent Expense, Sublease Rentals									6,109
Employment Agreement Percentage of Base Salary										100.00%
Officers' Compensation										$ 365,000
Performance Based Equity Plan, Market Capitalization Minimum Amount							$ 100,000,000
Performance Based Equity Plan Market Capitalization Maximum Amount							$ 1,100,000,000
Number Of Shares Issued To Landlord As Prepaid Rent And Tenant Improvements				41,563
Revenues										$ 136,364	200,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period										64,416
Prepaid Rent										$ 80,784		$ 80,784
Chief Commercial Officer [Member]
Commitments and Contingencies [Line Items]
Officers' Compensation	$ 80,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	80,201
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 2.49
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total	44,836
General and Administrative Expense [Member]
Commitments and Contingencies [Line Items]
Amortization Of Prepaid Service Paid In Stocks										6,250	$ 36,975
Consulting Agreement [Member]
Commitments and Contingencies [Line Items]
Payments for Fees									$ 5,000	5,000
Operating Leases, Income Statement, Initial Direct Costs										$ 25,000
Hosted Design Solution Agreement [Member]
Commitments and Contingencies [Line Items]
Other Cost of Services						$ 100,568
Hardware And Software Configuration Payments Period Increase					$ 198,105
Offer Letter [Member]
Commitments and Contingencies [Line Items]
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage		75.00%
Percentage of Vesting Related To Liquidation Or Termination		100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		120,000
Employee Stock Option [Member]
Commitments and Contingencies [Line Items]
Deferred Compensation Arrangement with Individual, Exercise Price										$ 1.68
Deferred Compensation Arrangement with Individual, Maximum Contractual Term										48 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross										0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price										$ 0
Licensing Agreements [Member]
Commitments and Contingencies [Line Items]
Research and Development Arrangement, Contract to Perform for Others, Compensation Earned								$ 500,000		$ 500,000
Development And Licensing Agreements [Member]
Commitments and Contingencies [Line Items]
Revenue Recognition, Milestone Method, Revenue Recognized												2,000,000
Licenses Revenue										$ 200,000		$ 500,000
Performance-Based Equity Plan [Member]
Commitments and Contingencies [Line Items]
Percentage Of Performance Share Units To Be Earned On Achievement Of Market Capitalization Growth										100.00%
Percentage Of Performance Share Units To Be Paid On Quarterly Basis										50.00%
Percentage Of Performance Share Units To Be Paid On Termination of Employment Agreement										25.00%
Performance Based Equity Plan, Market Capitalization Minimum Amount										$ 100,000,000
Performance Based Equity Plan Market Capitalization Maximum Amount										$ 1,100,000,000
Percentage Of Performance Share Units Deferred										50.00%
Performance-Based Equity Plan [Member] | Phantom Share Units (PSUs) [Member]
Commitments and Contingencies [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							639,075
Second Employee Stock Option [Member]
Commitments and Contingencies [Line Items]
Deferred Compensation Arrangement with Individual, Exercise Price										$ 6.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross										496,546
Term Leases [Member]
Commitments and Contingencies [Line Items]
Payments for Tenant Improvements										$ 100,000
Balzer Family Investments, L.P [Member]
Commitments and Contingencies [Line Items]
Operating Leases, Rent Expense				$ 36,720
Operating Leases Expiration Period				60 months
Operating Leases, Rent Expense, Net				$ 6,732
Mr. Sereda [Member] | Offer Letter [Member]
Commitments and Contingencies [Line Items]
Officers' Compensation		$ 250,000
Mr. Rizzone [Member] | Employee Stock Option [Member]
Commitments and Contingencies [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross										275,689
Common Stock [Member]
Commitments and Contingencies [Line Items]
Payments for Rent				400,000
Shares Issued To Landlord As Prepaid Rent And Tenant Improvements Value				$ 500,000
Common Stock [Member] | Consulting Agreement [Member]
Commitments and Contingencies [Line Items]
Stock Issued During Period, Shares, Issued for Services									15,000
Stock Issued During Period, Value, Issued for Services									$ 147,900
IR Consulting Warrant [Member]
Commitments and Contingencies [Line Items]
Warrants Issued To Purchase Common Stock, Shares										36,000
Investment Warrants, Exercise Price										$ 7.80
Warrants Exercise Price, Representing IPO Price Percentage										130.00%
Warrants Vesting, Each Month Of Service										3,000
Warrants Vesting Thereafter, Each Month Of Service										3,000
Warrant Vested During Period, Shares											36,000
Stock based compensation expense										$ 0	$ 7,522
IR Incentive Warrant [Member]
Commitments and Contingencies [Line Items]
Warrants Issued To Purchase Common Stock, Shares									15,000
Investment Warrants, Exercise Price									$ 7.80
Terms Of Incentive Warrant Market Maker									$ 250,000
IR Consulting And Incentive Warrant [Member]
Commitments and Contingencies [Line Items]
Warrants Term										4 years

XML

Stockholders' Equity (Details Textual) - USD ($)		1 Months Ended
	Apr. 11, 2015	Nov. 30, 2015	Nov. 17, 2015	Apr. 24, 2015
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues		3,000,005
Proceeds From Shelf Registration Debt Or Equity Securities				$ 75,000,000
Proceeds From Disgorgement Of Short Swing Profit	$ 12,611
Consummation of Offering Under Shelf Registration [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues			3,000,005
Common Stock, Discount on Shares			$ 1,242,002
Proceeds From Shelf Registration Debt Or Equity Securities				$ 75,000,000
Stock Offering Expenses On Issue Of Common Stock			125,000
Additional Stock Offering Expenses On Issue Of Common Stock			284,576
Proceeds From Issuance Of Common Stock Net Off Offering Expenses And Discount			$ 19,048,456
Share Price			$ 6.90
Proceeds from Issuance of Common Stock		$ 19,048,456	$ 19,333,032

XML

Stock Based Compensation (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Weighted Average Grant Date Fair Value, Forfeited
Intrinsic Value, Exercisable	$ 3,076,767
Intrinsic Value, Exercisable	$ 5,129,844	$ 3,076,767
Employee Stock Option [Member]
Weighted Average Grant Date Fair Value, Forfeited
Number of Options, Outstanding	1,487,785
Number of Options, Granted	0
Number of Options, Exercised	(44,290)
Number of Options, Forfeited	0
Number of Options, Outstanding	1,443,495	1,487,785
Number of Options, Exercisable	860,970
Number of Options, Vested	87,242
Number of Options, Exercised	(44,290)
Number of Options, Forfeited	0
Number of Options, Exercisable	903,922	860,970
Weighted Average Exercise Price, Outstanding	$ 4.43
Weighted Average Exercise Price, Granted	0
Weighted Average Exercise Price, Exercised	2.49
Weighted Average Exercise Price, Forfeited	0
Weighted Average Exercise Price, Outstanding	4.40	$ 4.43
Weighted Average Exercise Price, Exercisable	4.34
Weighted Average Exercise Price, Vested	4.35
Weighted Average Exercise Price, Exercised	2.49
Weighted Average Exercise Price, Forfeited	0
Weighted Average Exercise Price, Exercisable	$ 4.43	$ 4.34
Weighted Average Remaining Life In Years, Outstanding	7 years 10 months 24 days	8 years
Weighted Average Remaining Life In Years, Exercisable	7 years 10 months 24 days	8 years
Intrinsic Value, Outstanding	$ 5,310,340
Intrinsic Value, Outstanding	$ 8,234,898	$ 5,310,340

XML

Stock Based Compensation (Details 1)	3 Months Ended
	Mar. 31, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance | shares	1,560,996
RSUs granted | shares	64,416
RSUs forfeited | shares	(15,079)
RSUs vested | shares	(190,642)
Ending Balance | shares	1,419,691
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 8.83
Weighted Average Grant Date Fair Value, RSUs granted | $ / shares	8.11
Weighted Average Grant Date Fair Value, RSUs forfeited | $ / shares	7.86
Weighted Average Grant Date Fair Value, RSUs vested | $ / shares	9.98
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 8.65
Vested Beginning Balance | shares	7,800
Shares of common stock issued in exchange for RSUs | shares	(132,630)
Vested Ending Balance | shares	65,812
Weighted Average Grant Date Fair Value, Vested Beginning Balance | $ / shares	$ 7.94
Weighted Average Grant Date Fair Value, Shares of common stock issued in exchange for RSUs | $ / shares	9.82
Weighted Average Grant Date Fair Value, Vested Ending Balance | $ / shares	$ 10.07

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Stock Based Compensation (Details 2)	3 Months Ended
	Mar. 31, 2016 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market capitalization	$ 136,888,114
Dividend yield	0.00%
Expected volatility	60.00%
Risk-free interest rate	0.95%

XML

Stock Based Compensation (Details 3)	3 Months Ended
	Mar. 31, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested Beginning Balance	7,800
Vested Ending Balance	65,812
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options, Outstanding	1,135,614
PSUs granted	63,908
PSUs forfeited	0
PSUs vested	(7,677)
Number of Options, Outstanding	1,191,845
Vested Beginning Balance	13,768
PSUs vested	7,677
PSUs forfeited	0
Shares of common stock issued in exchange for PSUs	(13,768)
Vested Ending Balance	7,677
Weighted Average Grant Date Fair Value, Outstanding | $ / shares	$ 2.62
Weighted Average Grant Date Fair Value, PSUs granted | $ / shares	2.62
Weighted Average Grant Date Fair Value, PSUs forfeited | $ / shares	0
Weighted Average Grant Date Fair Value, PSUs vested | $ / shares	2.62
Weighted Average Grant Date Fair Value, Outstanding | $ / shares	2.62
Weighted Average Grant Date Fair Value, Vested | $ / shares	2.62
Weighted Average Grant Date Fair Value, PSUs vested | $ / shares	2.62
Weighted Average Grant Date Fair Value, PSUs forfeited | $ / shares	0
Weighted Average Grant Date Fair Value, Shares of common stock issued in exchange for PSUs | $ / shares	2.62
Weighted Average Grant Date Fair Value, Vested | $ / shares	$ 2.62

XML

Stock Based Compensation (Details 4)	3 Months Ended
	Mar. 31, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance | shares	1,560,996
RSUs granted | shares	64,416
RSUs forfeited | shares	(15,079)
RSUs vested | shares	(190,642)
Ending Balance | shares	1,419,691
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 8.83
Weighted Average Grant Date Fair Value, RSUs granted | $ / shares	8.11
Weighted Average Grant Date Fair Value, RSUs forfeited | $ / shares	7.86
Weighted Average Grant Date Fair Value, RSUs vested | $ / shares	9.98
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 8.65
Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance | shares	0
RSUs granted | shares	14,953
RSUs forfeited | shares	0
RSUs vested | shares	0
Ending Balance | shares	14,953
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 0
Weighted Average Grant Date Fair Value, RSUs granted | $ / shares	8.36
Weighted Average Grant Date Fair Value, RSUs forfeited | $ / shares	0
Weighted Average Grant Date Fair Value, RSUs vested | $ / shares	0
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 8.36

XML

Stock Based Compensation (Details 5)	3 Months Ended
	Mar. 31, 2016 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Expected volatility	60.00%
Risk-free interest rate	0.95%
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock price	$ 8.36
Dividend yield	0.00%
Expected volatility	56.00%
Risk-free interest rate	0.49%
Expected life	6 months

XML

Stock Based Compensation (Details 6) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation, Total	$ 1,953,534	$ 1,679,221
IR Consulting Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	0	85,831
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	1,223,096	1,333,875
Performance Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	214,465	0
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	62,937	0
Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	29,974	0
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 423,062	$ 259,515

XML

Stock Based Compensation (Details 7) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation, Total	$ 1,953,534	$ 1,679,221
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	910,843	1,034,318
Sales and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	56,317	201,256
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 986,374	$ 443,647

XML

Stock Based Compensation (Details Textual) - USD ($)	1 Months Ended					3 Months Ended		12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jan. 31, 2016	Dec. 17, 2015	May. 21, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Apr. 10, 2015	Mar. 06, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						64,416
Performance Based Equity Plan Market Capitalization Minimum Amount					$ 100,000,000
Performance Based Equity Plan Market Capitalization Maximum Amount					$ 1,100,000,000
Share based Compensation Arrangement By Share based Payment Award Options Grants In Period Fair Value						3,518,921
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value						$ 8.11
Number of Shares To Be Issued If All Participants Under ESPP Exercise Options			48,912
Share Based Compensation Arrangement By Share Based Payment Award Unamortized Value						$ 2,480,387
Share Based Compensation Arrangement By Share Based Payment Award Unamortized Weighted Average Period						2 years 9 months 18 days
Performance Based Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Based Equity Plan Market Capitalization Minimum Amount						$ 100,000,000
Performance Based Equity Plan Market Capitalization Maximum Amount						$ 1,100,000,000
Percentage Of Performance Share Units To Be Earned On Achievement Of Market Capitalization Growth						100.00%
Non-Employee Equity Compensation Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized										250,000
Common Stock Available To Be Issued		69,939				69,939
2013 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized											1,042,167
Share-based Compensation Arrangement by Share-based Payment Award, Other Share Increase (Decrease)								2,335,967
Common Stock To Be Issued		188,627				188,627
2015 Performance Share Unit Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						1,342,061
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						2 years 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		12,500
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options		$ 10,881,355				$ 10,881,355
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Mr.Michael Leabman [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value				$ 12,500
Director [Member] | Restricted Stock Units (RSUs) [Member] | Non-Employee Equity Compensation Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			26,916
John Gahlding [Member] | Non-Employee Equity Compensation Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			14,953
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total			$ 125,000
John Gahlding [Member] | Restricted Stock Units (RSUs) [Member] | Non-Employee Equity Compensation Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			25,000
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total			$ 75,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 1,395,794				$ 1,395,794
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						1 year 6 months
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						63,908
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						63,908
Allocated Share-based Compensation Expense						$ 214,465	$ 0
Performance Shares [Member] | 2015 Performance Share Unit Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						1,278,153
Performance Shares [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		63,908
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized									1,310,104
Amortization of Financing Costs						$ 214,465	0
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		31,951				31,951
Performance Share Units [Member] | Performance Based Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					639,075
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award						On May 21, 2015, the Company’s stockholders approved the ESPP. Employees may designate an amount not less than 1% but not more than 10% of their annual compensation, but for not more than 7,500 shares during an offering period. An offering period shall be six months in duration commencing on or about January 1 and July 1 of each year. The exercise price of the option will be the lesser of 85% of the fair market of the common stock on the first business day of the offering period and 85% of the fair market value of the common stock on the applicable exercise date.
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	48,912	46,023
Allocated Share-based Compensation Expense						$ 62,937	0
Common Stock, Capital Shares Reserved for Future Issuance		553,977				553,977			600,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value						$ 2.57
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		553,977				553,977
Employee Contribution Through Payroll Withholdings		$ 173,784				$ 173,784
Proceeds from Issuance Initial Public Offering			347,569
Stipend [Member] | John Gahlding [Member] | Non-Employee Equity Compensation Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total			$ 50,000
Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		9 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						14,953
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options		$ 95,033				$ 95,033
Allocated Share-based Compensation Expense						$ 29,974	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value						$ 8.36

XML

Related Party (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Howard Yeatons Service [Member]
Related Party Transaction [Line Items]
Payments for Fees	$ 0	$ 25,963
Other Financial Advisory and Accounting Services [Member]
Related Party Transaction [Line Items]
Payments for Fees	$ 10,631	$ 26,257