Why Shares of Energous Corp. Are Surging Today

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What happened

Shares of Energous Corp. (NASDAQ: WATT) jumped on Tuesday after the wireless charging company disclosed that the Federal Communications Commission had certified its WattUp Near Field transmitter. This comes a few months after the FCC certified the company's Mid Field transmitter. The stock was up about 10% at 12:15 p.m. EDT.

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So what

The WattUp Near Field transmitter, which allows for contact-based charging, has been certified under Part 18 of the FCC's requirements. Energous said that the transmitter was fully compliant with all safety, EMC, and regulatory requirements after undergoing rigorous testing.

In December, the FCC certified the company's Mid Field transmitter, which can deliver power wirelessly to devices up to three feet away. "Following the first FCC certification for our power-at-a-distance wireless charging transmitter under Part 18 rules, this approval represents a significant step forward in creating a fully compatible wireless charging ecosystem," said Energous CEO Stephen Rizzone.

Energous expects the Near Field transmitter to serve as a reference design for initial contact-based applications from its customers. The company is working on getting international approvals so that top-tier customers can launch products based on the technology globally.

Now what

While this is another step in the right direction, the company has yet to produce any meaningful revenue. Energous recorded revenue of just $1.2 million in 2017, along with a net loss of $49.4 million. It does expect to see multiple WattUp-based products launched in 2018, which will produce "significant revenue growth." But at the moment, Energous' $400 million market capitalization is based purely on hope.

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Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.