We expect to engage additional partner as we progress through 2024. On December 13, 2023, we announced our partnership with Identiv, a global system integrator, with a specific objective of targeting real-time asset tracking and inventory control for industrial, logistics and retail applications. In January of this year, we attended an RF show in New York. This conference brings together key companies varying field of retail IoT and its ecosystem. In summary, Energous continues to execute on its new go-to-market strategy and is making clear progress as we work to reposition and retarget the company on Smart IoT application. Energous Smart IoT strategy is generating a great deal of interest as evidenced by our 38 POC trial installation where our customers have communicated back to us that they understand the clear value offered by our IoT wireless power network.
Mallorie Burak: 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. Severance expenses decreased by approximately $0.4 million to $0.4 million in 2023. The GAAP reported net loss for 2023 was $19.4 million versus a loss of $26.3 million in 2022. We feel it’s valuable to share an adjusted net non-GAAP loss for 2023, given the level of noncash related and extraordinary expenses incurred by the company.
After adjusting the 2023 GAAP net loss by noncash-related expenses such as depreciation, amortization and stock-based compensation totaling approximately $1.8 million as well as extraordinary expenses such as severance expense of $0.4 million, which includes the associated stock-based compensation expense and by $0.6 million representing the offering costs related to the warrant liability, offset by the change in fair value of the warrant liability of $2.5 million. The 2023 adjusted net loss was approximately $19.1 million as compared to the adjusted non-GAAP loss reported in 2022 of $22.6 million, reflecting a $3.5 million improvement year-over-year. Shifting over to the balance sheet and cash flow. We ended 2023 with $13.9 million in cash and remain debt free.
During 2023, we raised approximately $4.2 million through the ATM to supplement our working capital. In addition, we generated approximately $2.8 million in net proceeds through the sale of common stock and prepaid warrants and approximately $0.5 million from the collection of accounts receivable and we continue to focus on opportunities to improve cash flow through sales, improving gross margins and as well as reductions in spending. In closing, I would like to say thank you to all our shareholders, stakeholders and the Energous team members. We look forward to updating you on the company’s progress again next quarter and this concludes our year-end 2023 update.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
End of Q&A:
