Good day and welcome to the Energous Corporation Full Year 2023 Financial Results. All participants will be in listen-only mode. Please note this event is being recorded. I would now like to turn the conference over to Craig MacPhail, Investor Relations. Please go ahead.

Thank you, and welcome, everyone. Before we begin, I would like to remind participants that during today's call, the company will make forward-looking statements. These statements are subject to inherent risks and uncertainties that are detailed in the company's filings with the Securities and Exchange Commission. Except as otherwise required by federal laws, Energous disclaims any obligation or undertaking to publicly release updates or revisions to the forward-looking statements contained herein or elsewhere to reflect changes in expectations with regard to those events, conditions and circumstances. Also, please note that during this call, Energous will be discussing non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in today's press release, which is posted on the company's website. Please note that we will not be making -- taking questions on this call. Investors are invited to submit any questions to ir@energous.com. Now I would like to turn the call over to Mallorie Burak, Principal Executive Officer and CFO of Energous Corporation. Please go ahead, Mallorie.

Thanks, Craig, and thank you all for joining us. I'm here with Giampaolo Marino, our Vice President of Business Development and Marketing. I know our recent leadership change announcement is on your minds and I will say a few words about that before we get into the business update and review of the 2023 results. I want to start by reiterating that we are thankful to Cesar for his contributions to Energous, and we wish him well in the future. Our Board has initiated a search to identify a new CEO with the support of a search firm. While the search process is underway, the Board has established an Office of the Chair composed of myself and Reynette, our Board Chair, to take on the CEO duties. Together, we will oversee strategic planning and execution. As our Interim Principal Executive Officer, I will take the lead on operational matters, working closely with Giampaolo and our senior leaders, Reynette will provide oversight and support from a Board perspective. Well, I have been in my role as CFO of Energous for just a few months, I bring many years of experience as CFO of high-growth and publicly traded technology companies. Since joining in January, I've had the opportunity to collaborate closely with our Board and senior team, and I'm confident in our ability to continue to deliver on our mission and take advantage of the large market opportunity for us in wire-free, low-power charging at a distance. We believe the important thing to take away from this announcement is that our Board, our leadership team and our -- and the whole Energous team are excited to move forward and build our next phase of growth in a strategic deliberate way. We are intently focused on capitalizing on our first-to-market advantage and prioritizing protection of our intellectual property portfolio, while also improving operational efficiencies as we work toward enabling the next generation of wireless power networks. And with that, I will turn it over to Giampaolo to provide a business update.

Thank you, Mallorie. Energous continues to successfully execute its Smart IoT-centric strategy initiated in early 2022 when we repositioned and retargeted the company to develop IoT power charging product at a distance using the intellectual property, regulatory knowledge, and market experience developed over the years and backed by our 200-plus patent portfolio, providing Energous with a significant competitive advantage as we work to develop and build a market for a new generation of technology. Our strategy has been focused on enabling new high-value IoT markets such as transportation and logistics and retail IoT with the introduction of Energous wireless power networks. These networks allow our customer greater placement freedom, mobility and lower installation costs by removing wires and batteries across RF tags and sensor application typically within a cloud-enabled environment. As is common when adopting a new technology, our customer initiated wireless powered network technology evaluation and then proof-of-concept installation or we typically call POC. This engagement not only allow business to understand and test the application of the technology to their specific use cases, but also one seeing it deployed and validating the effectiveness of the technology, often time leads to discussion about expansion opportunities and additional application within the large companies with whom we are currently working. Understanding how Energous is progressing with its current customers and its addition of new strategic customers through these POC or trial installation phases is an important indicator of our global adoption of Energous technology and the timing of future revenue. This is why we believe that quarterly updates on the number of POC customers are an important part of our stories and good indicator of our growth. Energous 1W WattUp PowerBridge, we typically called Eagle, is the only advanced and regulatory certified product for wireless power network installation available on the…

Thanks, Giampaolo. Earlier today, we issued our earnings release announcing the operating and financial results for the year ended December 31, 2023. Focusing on the GAAP financial statements, our 2023 recognized revenue was approximately $0.5 million versus $0.9 million reported in 2022 representing a decrease of approximately 44% versus the prior year. Although revenue declined, our cost of revenue in 2023 was approximately $0.3 million yielding a positive 41% gross margin versus the negative 50% gross margin reported in 2022. The 2023 cost of revenue includes an inventory write-down similar to that recorded in 2022. And despite this additional recorded costs, the year-over-year change represents a significant improvement in gross margins versus last year. Total 2023 operating expense, excluding severance decreased by approximately $3.5 million to $21.9 million from the $25.5 million in 2022. Research and development expense decreased by approximately $1.7 million in 2023 to $10.8 million versus $12.5 million incurred in 2022, primarily attributable to a reduction in stock-based compensation of $0.5 million, a decrease of $0.5 million related to lower consulting, third-party and professional service fees, a $0.4 million reduction in engineering supplies, components and chip development due to project timing, a $0.2 million related to reduced regulatory testing and fees and $0.1 million of lower postage related costs. Sales and marketing, general and administrative SG&A expenses for 2023 and 2022 were $11.1 million and $12.9 million, respectively. The reduction of approximately $1.8 million is primarily due to a $1.5 million reduction in personnel-related and stock-based compensation costs, a $0.4 million decrease in sales and marketing-related expenses, an approximate $0.2 million reduction in general and administrative costs and a decrease in insurance premiums and board fees of $0.2 million partially offset by increased costs relating to legal fees, investor relations and corporate expenses of approximately $0.5 million.…

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. End of Q&A: