Citron Goes After Energous: 'They Continue To Overpromise And Never Deliver'

Shares of Energous Corp WATT lost around 10 percent Friday morning, but the stock is still up more than 200 percent over the past week.

What You Need To Know

Energous develops a wireless charging technology called WattUp, which delivers power to devices like mobile phones through radio bands, similar to a Wi-Fi router. The stock was trading at around $9 on Tuesday but soared as high as $33.50 after the company received a certification from the Federal Communications Commission for its first-generation WattUp Mid Field transmitter.

Enter Citron Research

Short seller Citron Research said in a Tweet Friday morning that Energous has a "history of deception" and the recent FCC certification is "no different." Meanwhile, the company's technology is "not ready for prime time" and rival Powercast who also won an FCC approval will "expose" why the stock should trade back to $15.

Left told Benzinga he expects a secondary offering "as they continue to overpromise and never deliver."

"This [deception] is worse as they will not even specify how many watts they have been approved for by the FCC," Left said.

Meanwhile, Roth Capital Partners' William Gibson, was quoted by CNBC as saying in a Thursday note that "being first to market creates a meaningful competitive advantage to charging at a distance technologies." Naturally, Citron disagrees with the upgrade ans said it is "as [ridiculous] as their defense of Unipexel until [bankruptcy]."

Shares of Energous traded around $28.72 at time of publication, down 9.3 percent.

Related Links:

All The News That Has Energous Up 300% This Week

What iPhone's Wireless Charging Tech Means For Energous

Image credit: Energous WattUp Power Transmitter (TechCrunch, YouTube)