Energous: Don't Buy The Company's Story Or Stock

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Stock Puzzle


  • Energous's claim of creating 3D pockets of energy is pure fiction.
  • FCC regulations limit the transmitting of power through radio waves to milliwatt levels. Energous claim of 4W is not possible.
  • Energous invents their own tests rather than uses established FCC compliance tests.
  • Energous has no competive advantage in the IoT market.
  • The executive compensation is simply excessive (CEO makes $2M per year).

Wouldn't it be wonderful if you could place your cell phone or laptop anywhere in your house and it would automatically charge by a small wall mounted remote charging device that uses RF (radio waves) to transfer energy. Energous Corp. (NASDAQ:NASDAQ:WATT) makes this promise and many are willing to fund this dream. Currently, the company is valued for over $50M, which is a lot for a company with almost zero sales, no product, or even public demonstration apart from a carefully controlled "demo" in a hotel room. Yet, if the promises prove to be true, a larger company could easily buy them out for a hefty multiple. Perhaps there is a hidden technology gem here that will revolutionize our world? In this report, we look at the technological feasibility and FCC challenges faced by Energous.

Star Trek technology

Unfortunately, Energous's promises are closer to Star Trek technology than what is possible. And by possible, we are not just referring to technological state-of-the-art but laws of physics. Consider for example the claim that an Energous transmitter "creates a 3D pocket of energy using the 5.8GHz unlicensed ISM RF spectrum." This sounds great but there is a problem: It is simply not possible to create a 3D pocket of energy. Radio waves travel in a straight line and are the strongest near the transmitter. In a way, a radio transmitter is like a loudspeaker. For a single speaker, the sound is always strongest near the loudspeaker and gets weaker away from the speaker. It is possible to steer the radio wave beam by using multiple small antennas (phased array) but the beam is always strongest near the transmitter. Radio waves are beams, not pockets of energy.

One might be forgiving and assuming that the "3D pocket of energy" is just marketing department talk but

This article was written by

Stock Puzzle profile picture
Trading veteran, investor, and market timer. Specializing in turn-around companies with large profit potential.

Disclosure: I am/we are short WATT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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