Energous Corp (NASDAQ:WATT) is a company I have spoken about and written on before. They are developing wireless charging systems for smartphones. If successful, it would be a muti-billion dollar business. After all, who wouldn’t want to get rid of their cords if you can charge your phone or laptop without one? With over two billion smartphones shipped each year alone, wireless charging has the potential to disrupt the market as we know it.
That is what I liked about this company when I first looked into them a year ago. However, they ran into some problems with the FCC regarding their transmitters. They were interfering with other wireless things like Bluetooth and car radios. However, new developments for Energous Corporation might just make the WATT stock take off soon.
New partnership formed that could be a Catalyst for WATT stock
Last week, Energous Corp and Dialog Semiconductor plc (ETR:DLG) entered into a Securities Purchase Agreement. This agreement stipulates that Dialog Semiconductor plc would acquire 763,552 shares of Energous Corp’s common stock, plus a warrant to purchase up to 763,552 shares for roughly $10 million, or $17.0257 per share.
This deal brings in cash for Energous Corporation (NASDAQ:WATT) and Dialog has global distribution ability. Dialog power management and connectivity IP interact with WATT wireless power IP in their prime market, the portable consumer market. Dialog also provides credibility and advantages in sales and operation to a small company like Energous Corporation, or WATT.
Energous is going to focus on the field applications and engineering services, so when the first product is ready to ship, Dialog will be ready to roll it out on a global basis.
Does Energous Corp and Apple have an agreement?
An agreement between Energous Corporation and Apple Inc (NASDAQ:AAPL) has been rumored for some time now. The rumor is WATT will install their charging system in all new Apple phones when ready. Thus making an iPhone that is completely wireless and able to charge up to 15 feet away. If this is true it would obviously cause WATT stock to double several times over.
While we don’t know if Apple has a deal or not, what we do know is something else: Energous Corp (NASDAQ:WATT) has a partnership with a confidential Tier 1 electronics company that could begin rolling out WattUp-equipped devices as soon as 2017. How do we know? Through SEC filings. Energous offers the only wireless charging solution with the potential for commercial deployment within the next 18 months.
Whoever the Tier 1 partner is, according to documents filed, they have plans to deploy mobile, wearables and receivers in all products made by Energous Corporation.
Exploring the products
The Biggest Catalyst for WATT stock
Even with the developments I have discussed, which makes WATT stock a buy right now, their is one more. The third transmitter will take this company to another level if successful.
It is a full sized transmitter that will send power up to 15 feet away. The receiver that is shipping in the first quarter of this year with Dialog, or the contact based mini WattUp transmitter is the same receiver that can receive power from the mid-sized at 3 feet or the full sized at 15 feet. They’re all compatible! That is a big deal.
All Energous Corp needs is FCC approval for the 3-ft transmitter and then the full sized 15-ft. The receivers are all the same.
FCC approval on the second transmitter is expected in either Q3 or Q4 of 2017. So, this is still a risky investment but things are looking better with the Dialog Semiconductor plc deal just announced. Along with the confidential Tier 1 partnership agreement that is in place, confidence is building from other companies that they can and will deliver a wireless charging system.