美国
证券交易委员会
华盛顿特区 20549
表格
(标记一个)
根据1934年证券交易所法案第13或15(d)条的季报告 | |
截至2024年6月30日季度结束 | |
或 | |
| |
为了从______________到_______________的过渡期。
委员会档案编号：
（依凭章程所载的完整登记名称）
| ||
(注册或组织的州或其他司法管辖区) | （联邦税号） |
(主要行政办公室的地址)（邮政编码）
(
(注册人电话号码，包括区号)
不适用
(如果自上次报告以来更改，请提供公司的前名、前地址和前财政年度)
根据法案第12(b)条规定注册的证券：
每种类别的名称 |
| 交易标的 |
| 每个注册交易所的名称 |
该 |
请检查标记，确认注册商是否(1)在过去的12个月内(或更短的期限，注册商在该期限内需要提交此类报告)提交了证券交易法1934年第13条或15(d)条要求提交的所有报告；并且(2)过去90天一直受到此类报告的要求。
请勾选标记，以确认注册商是否已在过去的12个月内(或更短的期限，注册商在该期限内需要提交此类文件)依据《S-t规章》第405条(本章节第232.405条)提交了要求提交的每个交互式数据文件。
请勾选指示登记者是否为大型快速提交人、快速提交人、非快速提交人、较小的报告公司或新兴成长型公司。请参阅交易所法规120亿2条，了解「大型快速提交人」、「快速提交人」、「较小的报告公司」和「新兴成长型公司」的定义。
大型加速制表者 ☐ | 加速申报者☐ |
较小报告公司 | |
| 新兴成长企业 |
如果是新兴成长公司，则检查标记，如果登记人选择不使用交易所行为第13(a)条所提供的任何新的或修订的财务会计准则的延长过渡期来遵守。☐
请用勾选方式指示，公司是否为外壳公司（即根据《交易所法》第1202条所定义）。是
截至2024年11月13日，申报人的普通股流通数量为 2024年11月13日的普通股数量为
第一部分：基本报表
项目1.基本报表
WISA科技股份有限公司。
简明综合资产负债表
(以千为单位，每股数据除外)
| 2024年9月30日 |
| 2023年12月31日 | |||
| (未经审核) |
| (1) | |||
资产 |
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流动资产： |
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现金及现金等价物 | $ | | $ | | ||
应收账款 |
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存货 |
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预付费用及其他流动资产 |
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流动资产总额 |
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不动产及设备，净额 |
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应收票据 | | — | ||||
其他资产 |
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总资产 | $ | | $ | | ||
负债、可转换可赎回优先股及股东权益/(赤字) |
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当前负债： |
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应付帐款 | $ | | $ | | ||
应计负债 |
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流动负债总额 |
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认股权证负债 | | | ||||
其他负债 | | | ||||
总负债 |
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承诺事项和或附带条件（注8） |
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系列b可转换、可赎回优先股，面值$ | — | | ||||
股东权益 /（赤字）: |
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普通股，面额 $ |
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资本公积额额外增资 |
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累积亏损 |
| ( |
| ( | ||
股东权益总额/（赤字） |
| |
| ( | ||
负债总额、可转换优先股和股东权益总额/（赤字） | $ | | $ | | ||
| (1) |
备注：股份及每股金额已经进行追溯性调整，以反映一次反向股票拆分的影响。 2023年1月与2024年4月所进行的反向股票拆分已根据备注1所述进行。 备注1所述，股份及每股金额已根据2023年1月与2024年4月所进行的反向股票拆分进行追溯性调整。
附注说明是这些基本报表不可分割的一部分
3
WISA科技股份有限公司。
综合综合综合损益表
截至2024年和2023年9月30日的三个月和九个月
(以千为单位，每股数据除外)
(未经审核)
截至9月30日的三个月 | 截至九月三十日结束的九个月 | |||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 | |||||
净收益 | $ | |
| $ | | $ | |
| $ | | ||
成本收入 |
| |
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毛利润（赤字） |
| |
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| ( |
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| ( | ||
营业费用： |
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研发 |
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销售和市场推广 |
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总务和行政 |
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营业费用总额 |
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营业损失 |
| ( |
|
| ( |
| ( |
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| ( | ||
利息收入（费用），净额 |
| |
|
| ( |
| ( |
|
| ( | ||
认股权证负债公允价值之减少（增加） |
| |
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| ( |
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债务清偿损失 | — | — | — | ( | ||||||||
其他收入（费用），净额 |
| |
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| ( |
| |
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| ( | ||
税前亏损 |
| ( |
|
| ( |
| ( |
|
| ( | ||
所得税准备 |
| — |
|
| — |
| — |
|
| | ||
净亏损 | ( |
| ( | ( |
| ( | ||||||
将系列B优先股转换为普通股及回购系列B优先股所视为的股息 | — | — | ( | — | ||||||||
与修改可购买普通股的warrants有关，对于普通股及warrants的发行视为股息 | ( | — | ( | — | ||||||||
归属于普通股股东的净亏损 | $ | ( | $ | ( | $ | ( | $ | ( | ||||
普通股每股净亏损 - 基本和稀释 | $ | ( |
| $ | ( | $ | ( |
| $ | ( | ||
计算每股普通股净损所用的加权平均普通股数 |
| |
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| |
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注意：分享及每股金额已根据2023年1月进行的反向股票拆分的影响进行了追溯调整， 以及2024年4月进行的反向股票拆分，详情见附注1。
随附附注是这些简明综合财务报表的重要组成部分。
4
WISA科技股份有限公司。
综合股东权益（赤字）简明合并财务报表
截至2024年和2023年9月30日的三个月和九个月
(以千为单位，每股数据除外)
(未经审核)
总计 | ||||||||||||||||||||
可转换优先股 | 普通股票 | 额外 | 累积 | 股东的 | ||||||||||||||||
| 股份 |
| 金额 |
|
| 分享 |
| 数量 |
| 实收资本 |
| 赤字 |
| 权益（亏损） | ||||||
2023年12月31日的结余 |
| | $ | |
| | $ | | $ | | $ | ( | $ | ( | ||||||
基于股票的薪酬 | — | — | | — | | — | | |||||||||||||
ASU 2020-06 采用之累积效应 |
| — |
| |
| — |
| — |
| ( |
| — |
| ( | ||||||
与warrant行使相关的B系列优先股发行，扣除折扣后的净额 | | | — | — | — | — | — | |||||||||||||
与转换B系列优先股有关的普通股发行 |
| ( |
| ( |
| |
| — |
| |
| — |
| | ||||||
将系列B优先股转换为普通股及回购系列B优先股视为股息 |
| — |
| |
| — |
| — |
| ( |
| — |
| ( | ||||||
回购系列b优先股和系列b优先股warrants | ( | ( | — | — | | — | | |||||||||||||
普通股、预先资助单位及warrants的发行，扣除发行成本 | — | — | | — | | — | | |||||||||||||
与反向拆股有关的普通股发行，用于四舍五入的碎股。 | — | — | | — | — | — | — | |||||||||||||
净利润 | — | — | — | — | — | | | |||||||||||||
截至2024年3月31日的余额 | — | — | | | | ( | ( | |||||||||||||
以股票为基础的薪酬 | — | — | | — | | — | | |||||||||||||
与warrants行使有关的普通股发行 | — | — | | — | | — | | |||||||||||||
发行普通股及warrants，扣除发行成本后的净额 | — | — | | — | | — | | |||||||||||||
发行普通股份予供应商 | — | — | — | — | | — | | |||||||||||||
限制性股票奖励已取消 | — | — | ( | — | — | — | — | |||||||||||||
发放已归属的限制性普通股 | — | — | | — | — | — | — | |||||||||||||
将负债warrants转换为股权warrants | — | — | — | — | | — | | |||||||||||||
净亏损 | — | — | — | — | — | ( | ( | |||||||||||||
截至2024年6月30日的余额 | — | — | | | | ( | | |||||||||||||
基于股票的薪酬 | — | — | | — | | — | | |||||||||||||
与warrants修改相关的普通股发行 | — | — | | — | — | — | — | |||||||||||||
与warrants行使相关的普通股发行 | — | — | | — | | — | | |||||||||||||
限制性股票授予被取消 | — | — | ( | — | — | — | — | |||||||||||||
向供应商发行普通股票 | — | — | | — | | — | | |||||||||||||
净亏损 | — | — | — | — | — | ( | ( | |||||||||||||
截至2024年9月30日的结余 |
| — | — |
| | $ | | $ | | $ | ( | $ | | |||||||
总计 | |||||||||||||||||||
可转换优先股 | 普通股票 | 额外 | 累积 | 股东的 | |||||||||||||||
| 股份 |
| 金额 |
|
| 分享 |
| 金额 |
| 实收资本 |
| 赤字 |
| 股本 | |||||
截至2022年12月31日的资产负债表 | — | — | | $ | | $ | | $ | ( | $ | ( | ||||||||
基于股票的薪酬 | — | — | — | — | | — | | ||||||||||||
限制性股票奖励已取消 | — | — | ( | — | — | — | — | ||||||||||||
与可转换本票相关的普通股发行 | — | — | | — | | — | | ||||||||||||
与warrants行使有关的普通股发行 | — | — | | — | | — | | ||||||||||||
普通股及warrants的发行，扣除发行费用 | — | — | | — | | — | | ||||||||||||
净亏损 | — | — | — | — | — | ( | ( | ||||||||||||
截至2023年3月31日之结余 | — | — | | | | ( | | ||||||||||||
股票为基础的补偿 | — | — | — | — | | — | | ||||||||||||
释放已归属的限制普通股 | — | — | | — | — | — | — | ||||||||||||
受限股票奖励已被取消 | — | — | ( | — | — | — | — | ||||||||||||
发行普通股票和warrants，扣除发售成本后的金额 | — | — | | — | | — | | ||||||||||||
与warrant行使相关的普通股发行 | — | — | | — | | — | | ||||||||||||
净亏损 | — | — | — | — | — | ( | ( | ||||||||||||
截至2023年6月30日的结余 | — | — | | | | ( | | ||||||||||||
基于股票的薪酬 | — | — | | — | | — | | ||||||||||||
与warrant行使相关的普通股发行 | — | — | | — | | — | | ||||||||||||
净损失 | — | — | — | — | — | ( | ( | ||||||||||||
2023年9月30日的结余 | — | — | | $ | | $ | | $ | ( | $ | | ||||||||
注意：分享及每股金额已追溯调整，以反映2023年1月执行的 反向股票分拆的影响，以及 反向股票分拆的影响，详见第1条。
随附附注是这些简明综合财务报表的重要组成部分。
5
WISA科技股份有限公司。
简明财务报表现金流量表
截至2024年和2023年9月底的九个月
（以千为单位）
(未经审核)
截至九月三十日结束的九个月 | ||||||
| 2024 |
| 2023 | |||
经营活动现金流量： |
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净亏损 | ( | $ | ( | |||
调整为使净亏损转化为经营活动所使用现金： |
|
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基于股票的薪酬 | | | ||||
折旧及摊销 | | | ||||
债务折扣摊销 | | | ||||
权证负债的公允价值增长（减少） | | ( | ||||
可转换票据清偿损失 | — | | ||||
营运资产和负债的变化： |
|
| ||||
应收账款 |
| |
| ( | ||
存货 |
| |
| | ||
预付费用及其他流动资产 |
| ( |
| ( | ||
其他资产 | | | ||||
应付帐款 |
| ( |
| ( | ||
应计负债 |
| |
| ( | ||
其他负债 |
| ( |
| ( | ||
经营活动所用的净现金 |
| ( |
| ( | ||
投资活动之现金流量: |
|
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应收票据之发行 | ( | — | ||||
购买不动产和设备 |
| ( |
| ( | ||
投资活动中使用的净现金 |
| ( |
| ( | ||
来自筹资活动的现金流量: |
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| ||
普通股、预先资助的warrants和warrants的发行收益，扣除发行成本 | | | ||||
因行使warrants而发行普通股所获得的收益 | | | ||||
因行使B系列优先股warrants所获得的收益 | | — | ||||
短期贷款发行所得，扣除发行成本 | | | ||||
回购B系列优先股warrants | ( | — | ||||
短期贷款还款 | ( | — | ||||
可转换应付款项的还款，扣除发行成本 | — | ( | ||||
融资租赁的还款 | — | ( | ||||
筹资活动提供的净现金 |
| |
| | ||
现金及现金等价物净减少额 |
| |
| ( | ||
期初的现金及现金等价物 |
| |
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期末的现金及现金等价物 | | $ | | |||
现金流量资讯的补充披露： | ||||||
支付利息的现金 | | $ | | |||
支付所得税现金 | — | $ | | |||
非现金投资和融资活动: |
|
|
|
| ||
将负债warrants转换为股权warrants | $ | | $ | — | ||
与融资相关的warrant负债的发行 | $ | | $ | — | ||
将Series b优先股的转换视为红利及回购Series b优先股 | $ | | $ | — | ||
回购系列b优先股warrants | $ | | $ | — | ||
发行普通股份予供应商 | $ | | $ | — | ||
无现金行使权证 | $ | | $ | | ||
与贷款结算相关的warrant行使 | $ | | $ | — | ||
与B系列优先股相关的普通股发行 | $ | | $ | — | ||
未付的融资发行成本 | $ | | $ | — | ||
与2023年2月的发行相关的warrants负债发行 | $ | — | $ | | ||
与可转换票据相关的普通股发行 | $ | — | $ | | ||
记录取得的使用权资产，以替代经修订的经营租赁负债 | $ | — | $ | | ||
递延发行成本从预付费用重新分类 | $ | — | $ | | ||
短期贷款的法律费用应计 | $ | — | $ | | ||
随附附注是这些简明综合财务报表的重要组成部分。
6
WISA TECHNOLOGIES, INC.
附注-简明合并财务报表注释
2024年和2023年9月30日止三个和九个月
(未经审计)
1. | 业务和重要会计政策概述 |
纳斯达克科技公司，前身为峰会无线科技公司（与其子公司合称“我们”、“我们”、“我们”或“公司”），于2010年7月23日在特拉华州成立为有限责任公司。我们的业务是通过向音频公司销售模块元件以及向转售商和消费者销售音频产品，为智能设备和下一代家庭娱乐系统提供一流的沉浸式无线音频技术。
纳斯达克合规
公司目前符合纳斯达克股票市场有限责任公司（“纳斯达克”）的上市规则，但需遵守下文描述的监控。
2024年4月29日，纳斯达克在一封信函中告知公司，公司已重新符合纳斯达克上市规则5550(a)(2)条款（“最低买盘价格要求”）的最低买盘价格要求，这是根据2024年4月5日听证会决定所要求的。公司受到来信日期起一年的监控。如果在该一年监控期内，纳斯达克的上市资格人员（“资格人员”）发现公司再次不符合最低买盘价格要求，公司将不得向资格人员提供针对此类缺陷的遵从计划，资格人员也将不得为公司提供额外的时间以恢复对此类缺陷的遵从，并且公司也将不被授予适用的纠正或遵从期。相反，资格人员将发布摘牌决定函，公司将有机会要求与听证会小组进行新听证。公司将有机会向小组作出回应和陈述。
2024年7月3日，纳斯达克在一封信函中告知公司，公司已重新符合纳斯达克上市规则5550(b)(1)条款（“股本规则”）的股本要求，这是根据小组于2024年4月5日的决定所要求的。公司受到来信日期起一年的监控。如果在该一年监控期内，资格人员发现公司再次不符合股本规则，公司将不得向资格人员提供针对此类缺陷的遵从计划，资格人员也将不得为公司提供额外的时间以恢复对此类缺陷的遵从，并且公司也将不被授予适用的纠正或遵从期。相反，资格人员将发布摘牌决定函，公司将有机会要求与听证会小组进行新听证。公司将有机会向小组作出回应和陈述。
7
1. | 业务和重要会计政策摘要， 续） |
拆股并股
2024年4月拆股并股
在2024年4月4日，董事会批准了一项 拆股并股（“2024年4月拆股并股”）我们已流通普通股的反向拆分，并授权向特拉华州州务卿提交修改公司章程的证明，以实施2024年4月拆股并股。2024年4月12日，2024年4月拆股并股已经实施，压缩的合并基本报表已追溯调整。所有普通股的股份数量、购买普通股的warrants、价格和执行价格已追溯调整至反映2024年4月拆股并股。普通股于2024年4月15日交易开始时在拆分调整后的基础上开始交易。除非另有说明，本季度报告（此“报告”）中提供的信息已反映2024年4月拆股并股。
2023年1月拆股并股
在2023年1月24日，董事会批准了一项 拆股并股（“2023年1月拆股并股”）我们已流通普通股的反向拆分，并授权向特拉华州州务卿提交修改公司章程的证明，以实施2023年1月拆股并股。2023年1月26日，2023年1月拆股并股已经实施，压缩的合并基本报表已追溯调整。所有普通股的股份数量、购买普通股的warrants、价格和执行价格已追溯调整至反映2023年1月拆股并股。普通股于2023年1月27日交易开始时在拆分调整后的基础上开始交易。除非另有说明，本报告中提供的信息已反映2023年1月拆股并股。
呈现基础
附带的简明合并基本报表已按照美国普遍接受的会计原则（"U.S. GAAP"）编制，并包括为公司财务状况、经营成果和现金流量的公允报告所需的所有调整。该简明合并基本报表反映了wisa technologies, Inc.及其全资子公司WISA Technologies Korea, LTD（成立于2022年9月的韩国有限责任公司）和WiSA, LLC（特拉华州有限责任公司）的账户。所有的公司间余额和交易均已被消除。
使用估计
按照美国GAAP编制财务报表要求管理层进行估计和假设，这些估计和假设会影响财务报表及所附说明的金额。实际结果可能与这些估计有所不同。
重分类
为使当前期间的报告保持一致，已对之前期间的简明合并基本报表进行了某些重分类。这些重分类并未导致之前报告的净利润（亏损）、总资产或股东赤字的任何变化。
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| 1. | 业务和重要会计政策摘要， 继续 |
信用风险和其他风险和不确定性的集中度
可能使公司面临大量信用风险集中的金融工具主要包括现金和现金等价物以及应收账款。现金和现金等价物存入一家金融机构的活期账户和货币市场账户。有时，此类存款可能超过保险限额。该公司的现金和现金等价物存款没有遭受任何损失。
公司的应收账款来自世界各地客户的收入。公司对客户的财务状况进行信用评估，在某些情况下，可能要求在发货前全额或部分付款。截至 2024 年 9 月 30 日和 2023 年 12 月 31 日，有
该公司有
公司未来的经营业绩涉及许多风险和不确定性。可能影响公司未来经营业绩并导致实际业绩与预期存在重大差异的因素包括但不限于快速的技术变革、对公司产品的持续接受、来自替代产品和大型公司的竞争、对专有技术的保护、战略关系以及对关键人员的依赖。
该公司依靠独家供应商来制造其产品中使用的部分组件。由于各种原因，公司的制造商和供应商在制造过程中可能会遇到问题，其中任何原因都可能延迟或阻碍他们满足需求的能力。该公司严重依赖中国的单一承包商来组装和测试其产品，依赖日本的单一承包商生产其发射半导体芯片，以及中国的单一承包商生产其接收半导体芯片。
现金和现金等价物
公司将原定到期日为三个月或更短的所有高流动性投资视为现金等价物。
应收账款和信用损失备抵金
应收账款按发票金额入账，通常不计息。该公司审查其贸易应收账款账龄，以确定存在已知争议或收款问题的特定客户。公司在评估历史坏账趋势和客户财务状况变化时，在确定这些储备金的充足性时会做出判断。
金融工具的公允价值
由于到期日相对较短，公司某些金融工具，包括现金和现金等价物、应收账款、预付费用和其他流动资产、应付账款和应计负债的账面金额接近公允价值。根据公司目前可用于类似条款的贷款和资本租赁的借款利率，公司借款和资本租赁负债的账面价值接近公允价值。公司的认股权证负债是唯一定期调整为公允价值的金融工具。
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存货
存货，主要是购买的元件，以成本或净变现价值的较低者计量。成本是通过使用平均成本，即首先进先出基础来判定的。存货超过可销售数量和根据现有科技变化考虑过时的存货将被冲销。在确认损失的时候，将为该存货建立一个新的较低成本基础，随后发生的事实和情况的变化并没有导致新的成本基础的恢复或增加。
固定资产，净值
房地产和设备以减去累计折旧和摊销后的成本计量。房地产和设备的折旧以其估计使用寿命按直线法计算。 至
可转换金融工具
公司会根据特定标准，将转换选择权和认股权证从其主要工具中划分出来，并将它们视为独立的衍生金融工具。这些标准包括情况，例如（a）嵌入式衍生工具的经济特征和风险与主合同的经济特征和风险不明显或密切相关，（b）既有嵌入式衍生工具又有主合同的混合工具不会根据适用的普遍公认会计原则在公允价值上重新衡量，而持续发生的公允价值变动会计入收益，以及（c）具有与嵌入式衍生工具相同条款的独立工具将被视为衍生工具。这一规则的例外情况是，当宿主工具被认定为常规工具时，即根据适用的美国通用会计原则描述的术语。
当公司确定嵌入的转换选择权和认股权证应当从它们的主要工具中划分出来时，根据交易承诺日期时基础工具中嵌入的转换选择权的内在价值与相关普通股的公允价值之间的差额，将为所记录的折让。
在这些安排下，负债折让以较早到期的相关债务期限或最早的赎回日期使用利息法摊销为利息费用。
普通股权证、可转换可赎回优先股权证和衍生金融工具的认股权证
我们的普通股权证、可转换可赎回优先股权证和衍生金融工具的认股权证如果合约（1）要求实物交割或净股份交割，或者（2）允许公司选择净现金交割或以公司自身股份（实物交割或净股份交割）结算，则分类为股本。合约如果（1）需要净现金结算（包括如果发生事件并且该事件不受公司控制时需要净现金结算合同），或者（2）给对方选择净现金结算或以股份（实物交割或净股份结算）结算的权利，或者（3）包含不符合范围例外规定的重置条款，则进行资产或负债分类。公司会在每个报告日期评估其普通股认股权证和其他衍生工具的分类，以确定是否需要在股本和负债之间进行分类变更。
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产品质保
该公司的产品通常受以下条件的约束
收入确认
该公司的收入主要来自两个产品类别，包括消费类音频产品的销售和组件的销售。公司采取以下五个步骤：（1）确定与客户的合同，（2）确定合同中的履约义务，（3）确定交易价格，（4）将交易价格分配给合同中的履约义务，（5）在履行履约义务时确认收入。公司将客户的采购订单视为与客户的合同。扣除预期折扣后的收入，是在履行与客户签订的合同义务以及将承诺货物的控制权移交给客户时确认的，通常是在向客户运送被确定为唯一不同履约义务的产品时。保险担保和索赔的预期成本被确认为费用。
政府机构评估的针对特定创收交易征收和同时征收的税款，由我们向客户收取并存入相关政府机构，不包括在收入中。我们的收入安排不包含重要的融资部分。
对某些分销商的销售是根据向分销商提供价格调整、价格保护、库存周转和某些情况下其他补贴的安排进行的。公司不向其客户提供合同规定的退货权。但是，公司根据具体情况接受有限的回报。这些回报、调整和其他津贴记作可变对价。我们会根据向客户提供的预期金额估算这些金额，从而减少确认的收入。我们认为，我们对可变考虑因素的估计不会有重大变化。
如果客户支付了对价，或者公司有权在我们向客户转让商品或服务之前获得无条件的对价，则这些金额被归类为合同负债，在付款或到期时（以较早者为准）包含在其他流动负债中。
实用权宜之计和豁免
根据会计准则编纂主题606（与客户签订合同的收入），我们使用以下实际权宜之计：（i）当我们在合同开始时预计从向客户转让承诺的产品或服务到客户支付该产品或服务的期限为一年或更短时，不调整承诺的对价金额；（ii）将成本产生的费用支出在摊还期限到来时获得合同一年或更短时间；（iii）如果承诺的商品或服务在与客户签订的合同中不重要，则不评估承诺的商品或服务是否为履约义务。此外，我们确实如此
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2024年和2023年截至9月30日三个月和九个月的净营业收入如下:
| 截至9月30日三个月的情况 |
| 截至9月30日的九个月 | |||||||||
(以千为单位) | 2024 |
| 2023 | 2024 |
| 2023 | ||||||
组件 | $ | | $ | | $ | | $ | | ||||
消费音频产品 |
| |
| |
| |
| | ||||
总计 | $ | | $ | | $ | | $ | | ||||
合同余额
公司根据合同中确定的账单计划从客户处收取款项，以部分抵消供应商要求提前支付长交货周期材料的预付款。在履行履约义务之前收取的金额被视为合同负债，并在合并资产负债表中分类为客户预付款在预收负债中。当公司具有根据合同完成履约的有条件权利时，合同资产被记录。当获得这一权利的权利变得无条件时，应收账款将被记录。截至2024年9月30日和2023年12月31日，公司没有任何重要的合同资产。
九月30日 | 12月31日， | |||||
（单位：千元） |
| 2024 |
| 2023 | ||
合同负债 | $ | | $ | | ||
在2024年9月30日结束的九个月内，公司确认了约xx美元的收入
地理区域收入
一般而言，按地理位置（见注释10）细分的收入，根据我们业务的性质和经济特征进行了调整，并提供了对我们经营结果有意义的细分。由于我们在所有板块开多，
基于股票的薪酬
公司根据授予给员工和董事的受限股份单位和受限股票奖励的公允价值在授予日确认和计量补偿支出。
受限股票单位赋予员工对公司股票的利益，但在获得完全控制权之前，它们没有实际价值。受限股票单位和受限股票奖励均被归类为权益，并按照授予日期基础股票的公允市场价值进行计量，并在相关服务或履行期内以开支形式确认。公司选择随发生而计算弃权。股票奖励的公允价值基于授予日期我们普通股的报价。对受限股票单位和受限股票奖励的补偿成本是使用直线法分摊到相应服务期内。
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研发
研发成本在发生时计入运营，包括薪资、咨询费用和设施成本的分摊。
广告费用
广告费用在发生时计入销售和市场营销费用。截止到2024年9月30日的三个月和九个月的广告费用为$
综合损失
综合损失代表企业股权的变化，这些变化与股东交易无关。因此，综合损失可能包括某些不计入净损失的股权变化。截止2024年和2023年9月30日的三个月和九个月，公司综合损失与其净损失相同。
外币
公司的外资业务的财务状况和经营成果是采取除美元以外的其他货币作为其功能货币来进行计量的。因此，对于这些业务，所有资产和负债都按各自资产负债表日的当前汇率换算为美元。费用项目是使用期间的加权平均汇率进行换算的。这些业务财务报表换算产生的累计收益和损失作为股东权益的一个单独组成部分进行报告，而因重新计量当地货币到美元而导致的外币交易收益或损失则记录在简明合并经营报表中的其他收入（费用）、净额，并且在截止2024年和2023年9月30日的三个月和九个月期间没有重大影响。
每股普通股净亏损
基本和稀释后的每股净损失根据对参与证券要求的两类法进行呈现。公司将所有系列的可转换优先股视为参与证券。在两类法下，归属于普通股股东的净损失不分配给可转换优先股，因为可转换优先股的持有人没有合同义务分享公司的损失。在两类法下，净利润将根据其参与权分配给普通股股东和参与证券。
基本每股净损失通过将归属于普通股股东的净损失除以期间的普通股加权平均数来计算，不考虑潜在稀释证券。稀释后的每股净损失通过将归属于普通股股东的净损失除以期间的普通股加权平均数和潜在稀释的普通股当量来计算，后者是使用财库股票法和如果转换法来确定的。稀释每股净损失的计算中，A系列
截至2024年9月30日，购买的warrants
截至2023年9月30日，购买的warrants
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所得税
递延税款按照责任方法提供，递延税资产为可减税暂时性差异、营运亏损和税收抵免未使用部分而承认，并为应纳税暂时性差异承认递延税负债。暂时性差异是资产和负债的申报金额与其纳税基础之间的差异。递延税资产会在管理层认为“很有可能”某些或全部递廙税资产无法实现时，通过减少估值准备向下调整。截至2024年9月30日和2023年12月31日，公司已承认递延税资产的估值准备。递延税资产和负债会根据税法和税率变化的影响在立法生效日进行调整。
公司使用综合模型来识别、计量、报告和披露简明合并财务报表上的纳税立场，这些立场是按照预期被采纳的或已采纳的。仅当“很有可能”纳税立场在税务检查中会维持时，才会承认纳税立场作为一项益项。这里假设会发生税务检查。承认的金额是最大金额的税收益益项，其有超过50%的可能性在检查时能够实现。对于不符合“很有可能”测试的纳税立场，不予记录任何税收益项。公司在纳税费用中承认与未承认的税务利益相关的利息及罚款。截至2024年9月30日和2023年12月31日，公司承认利息和罚款。
最近采用的会计准则
2020年8月，美国财务会计准则委员会（FASB）发布了美国财务会计准则更新（ASU）2020-06 “债务-带转换和其他期权（第470-20子主题）和衍生工具和套期保值-合同在实体自有权益内（第815-40子主题）：关于可转换工具和合同财务会计处理。” 这项ASU简化了可转换工具的会计处理，通过移除美国现行普通会计准则下所需的主要分离模型。公司于2024年1月1日采纳了这项标准，采用了修改的追溯法，将ASU应用于截至2024年1月1日未偿付的金融工具，而采纳效果累积金额通过调整留存收益的期初余额来确认。因此，公司通过消除对Series b特收股的有利转股特征的未摊销贴现来采纳了该标准。由于2024年1月1日没有留存收益，ASU 2020-06采纳的累计影响被调整至额外实收资本，数额为$
最近发布但尚未采用的会计准则
2023年12月，FASb发布了ASU 2023-09 – 所得税（主题740）：改进所得税披露，以帮助投资者更好地了解实体对潜在的司法税收立法变化和随之而来的风险和机遇的暴露。此外，该更新改进了用于评估影响现金流预测和资本配置决策的所得税信息的披露。此更新适用于2024年12月15日后开始的公共营业实体，采用前瞻性方法。公司目前正在评估采用此标准对我们简明一体财务报表的影响。
2023年11月，FASb发布了ASU 2023-07 “分部报告（主题280）：改进报告分部披露”，旨在增强财务报表中提供的分部信息的透明度和相关性。此更新中的修订要求公共实体披露每个可报告分部的重要分部费用、盈利或亏损和资产等，按年度和中期基础。此更新适用于2023年12月15日后开始的财政年度，以及2024年12月15日后开始的财年内中期时段。公司目前正在评估采用此标准对我们简明一体财务报表的影响。
我们已经审查了其他最近的会计声明，并得出结论，要么这些声明不适用于业务，要么预计未来采用这些声明不会对简明一体财务报表产生重大影响。
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2. | 持续经营 |
公司的简明合并基本报表是基于持续经营原则编制的，该原则考虑到在正常业务过程中资产的实现和负债的清偿。截止到2024年9月30日，公司拥有的现金及现金等价物为$
基于当前的运营水平，公司在接下来的12个月内需要通过出售额外的股权或承担债务来筹集更多资金。迄今为止，公司主要通过在公开和私募市场上出售其证券、行使购买普通股的warrants筹集的资金，以及销售可转换票据来资助其运营。此外，未来的资本需求将取决于许多因素，包括营业收入增长率、公司产品的售价、销售和市场活动的扩展、研发投入的时间和程度以及公司产品的持续市场接受度。这些因素对公司能否在本报告日期后的12个月内继续作为一个持续经营的实体产生了重大疑虑。
公司管理层打算通过发行股权证券或债务来筹集额外资金。如果公司需要额外融资，则无法保证该融资将以公司可接受的条款提供。未能从运营中产生足够的现金流、筹集额外资本和减少可自由支配的开支可能对公司实现其预期业务目标产生重大不利影响。因此，公司能否继续作为一个持续经营的实体的重大疑虑尚未得到缓解。所附的精简合并基本报表未包括如果公司无法继续作为一个持续经营的实体，可能需要的任何调整。
3. | 资产负债表成分 |
库存（单位：千）：
九月30日 | 12月31日， | |||||
| 2024 |
| 2023 | |||
原材料 | $ | | $ | | ||
进行中的工作 | | — | ||||
成品 |
| |
| | ||
总存货 | $ | | $ | | ||
15
3.资产负债表元件， 继续
固定资产和设备净值（以千元计）：
九月30日 | 12月31日， | |||||
| 2024 |
| 2023 | |||
机械和设备 | $ | | $ | | ||
工具 |
| |
| | ||
| |
| | |||
减：累计折旧及摊销 |
| ( |
| ( | ||
物业和设备，净值 | $ | | $ | | ||
截至2024年9月30日和2023年9月30日的三个月内，折旧和摊销费用大约为$
应收票据:
2024年6月13日，公司与一家非关联第三方公司（"借款人"）签订了《优先担保 promissory note 和安防-半导体协议》（“ promissory note 和安防-半导体协议”）。根据该协议，公司同意向借款人提供一笔本金为$的定期贷款
2024年8月7日，公司与借款人签订了第二份 promissory note（本票）和安防-半导体协议。根据本票和安防-半导体协议，公司同意向借款人提供金额为 $ 的定期贷款。
2024年9月23日，公司与借款人签署了第三份 promissory note（本票）和安防-半导体协议。根据本票和安防-半导体协议，公司同意向借款人提供金额为 $ 的定期贷款。
公司定期评估应收账款的可收回性，并根据历史经验、当前情况和合理预测评估需要信贷损失准备金。截至2024年9月30日，
截至2024年9月30日，公司已确认约$
有
16
3.资产负债表元件， 继续
应计负债（以千为单位）：
九月30日 | 12月31日， | |||||
| 2024 |
| 2023 | |||
应计假期 | $ | | $ | | ||
客户预付款 | | | ||||
应计审计费用 | | | ||||
应计法律费用 |
| |
| — | ||
计提回扣 |
| |
| | ||
应计租赁负债，流动部分 | | — | ||||
应计薪酬 | | | ||||
应计其他 | | | ||||
总应计负债 | $ | | $ | | ||
4. | 借款 |
可转换期票据
在2022年8月15日，公司与一家机构投资者（“可转换票据投资者”）签署了证券购买协议（“八月份购买协议”），根据该协议，公司同意向投资者发行一张金额为$的高级担保可转换票据。
可转债的原始到期日为2024年8月15日，不计利息，并优先于公司现有和未来的债务，并根据安防-半导体协议提供的程度提供担保。可转债可由可转债投资者选择全部或部分转换为普通股（“转换股份”），转换价格（如下所定义）在可转债发行日后的任何时间均可进行。可转债将“转换价格”定义为等于以下两者中较小的（a）
与定向增发有关， 公司向可转换票据投资者和Maxim发行了认购权证，以购买普通股
与定向增发相关，公司与Maxim签订了一个代理协议（“代理协议”），并同意向Maxim发行一个权证，购买总计
17
4. | 借款， 续） |
2022年8月24日生效，公司和投资者同意修改可转换票据第3.1(b)款，规定在获得股东批准之前，转换价格不得低于底价，获得股东批准后，底价可降低至不低于$
2022年11月21日，公司与Maxim达成协议修正Maxim认股权证（“Maxim认股权证修正”）。具体来说，Maxim认股权证修正规定了Maxim认股权证受限的特定情况。Maxim认股权证修正还澄清了与要求登记权相关的某些限制，并规定Maxim的附带登记权将于Maxim认股权证发行日期后第五天（
新可转换票据包含了若干内含转换特征。公司认为这些转换特征需要从新可转换票据中分拆出来，并按照独立衍生工具的方式进行后续会计处理。公司在签署票据协议时确认了一项衍生工具负债为$
2022年11月28日，公司与新可转换票据投资者签署了一份关于权利的豁免协议（“豁免协议”），根据协议，新可转换票据投资者同意豁免与2022年12月发行单位相关的8月购买协议下的某些禁令，以换取公司在该发行结算日时发行额外一定数量的A类认股权证以购买普通股份（“A类认股权证”）和B类认股权证以购买普通股份（“B类认股权证”），数量等于被除数$
关于2022年12月1日进行的公司公开发行（“2022年12月发行”），公司发行了
在2023年2月1日，新可转换票据持有人将近$
2023年4月11日，该公司支付了$
2023年9月短期贷款协议
2023年9月8日，公司与Meriwether Group Capital Hero Fund LP（“Meriwether Hero Fund”）签订了特定的贷款和安全协议。根据贷款和安全协议，Meriwether Hero Fund同意向公司提供桥梁融资，形式为原始本金为$的定期贷款，该定期贷款将优先于公司现有和未来的债务（“Meriwether贷款”）。 Meriwether贷款应在2023年11月7日到期，但可进一步延长。此外，公司有权根据贷款和安全协议请求额外的资金。
18
4. | 借款， 续） |
Meriwether贷款下的借款年利率为
Meriwether贷款还规定，所有当前和未来的债务以及公司对Meriwether Hero Fund的义务应由公司所有房产和个人财产的第一优先安防-半导体权益担保。
Meriwether贷款包含惯例的陈述、保证以及肯定和否定的契约。此外，Meriwether贷款包含惯例的违约事件，这些事件使Meriwether Hero Fund有权使公司在Meriwether贷款下的债务立即到期并应支付，并对公司及担保该定期贷款的抵押品行使救济措施。
2023年10月10日，Meriwether Hero Fund同意将Meriwether贷款到期日由2023年11月7日延长至2023年12月7日，费用为$
2023年12月7日，公司偿还了Meriwether贷款的全部金额，包括所有费用和应计利息。
2024年1月短期贷款协议
在2024年1月19日，公司发行了总面值为$的本票
2024年1月本票到期时间为： (i) 2024年7月17日，或者(ii) 投资者目前持有的某些系列b优先股购买warrants的全部或部分行使，发行数量至少为
在2024年1月26日至2024年2月2日之间，2024年1月的 promissory notes 在行使某些公司系列 b 优先股购买 warrants 后全额偿还，共计
关于2024年1月warrant shares的发行（参见注释5 – 公允价值测量），warrants 的公允价值和原始发行折扣的利息被记录为总计$的债务折扣。
19
5. | 公允价值衡量 |
公司使用优先考虑用于衡量金融工具公允价值的计量技术输入的公允价值层次结构来衡量金融工具的公允价值，分为三个宽泛的层次。每个输入层次在确定公允价值时涉及不同程度的主观性和难度。
| ● | 一级 - 用于衡量公允价值的输入是可在报告日期作为相同资产或负债的未经调整的报价，这些报价在活跃市场上可获得。因此，一级投资的公允价值确定通常不需要重大判断，估计也不困难。 |
| ● | 二级 - 定价由投资顾问通过第三方市场信息来源提供。公司不会对从其顾问处获得的定价信息进行调整或应用任何额外的假设或估计。 |
| ● | 三级 - 用于衡量公允价值的输入是不可观察的输入，几乎没有市场活动支持，并反映了重大管理判断的使用。这些值通常通过定价模型确定，其假设利用管理层对市场参与者假设的估计。三级工具的公允价值确定涉及最多的管理判断和主观性。公司按公允价值层次分别于2024年9月30日和2023年12月31日衡量公允价值的金融资产和金融负债如下： |
（单位：千元） | 2024年9月30日 | ||||||||
重要 | |||||||||
报价价格 | 其他 | 重要 | |||||||
报价 | 可观察到的 | 不可观察的输入值 | |||||||
市场 | 输入 | 输入 | |||||||
| (级别1) |
| (二级) |
| (三级) | ||||
负债: |
|
|
| ||||||
存量证券负债 | $ | | $ | | $ | | |||
（单位：千元） | 2023年12月31日 | ||||||||
重要 | |||||||||
报价价格 | 其他 | 重要 | |||||||
报价 | 可观察到的 | 不可观察的输入值 | |||||||
市场 | 输入 | 输入 | |||||||
| (级别1) |
| (二级) |
| (三级) | ||||
负债: | |||||||||
存量证券负债 | $ | | $ | | $ | | |||
截至2023年7月31日，续借贷款协议下未偿还的借款额为
20
5.规定了以公允价值计量的资产和负债所记录或披露的资产或负债的三级层次优先级。优先级的排序反映了在衡量公允价值时是否可用于测量公允价值的外部活跃市场中的客观价格的程度。层次结构中资产和负债的分类基于用于测量的估值方法的输入是否可观察或不可观察。为尽可能地利用可观察输入并最小化非可观察输入的使用，公司利用最大化可观察输入和最小化不可观察输入的估值技术。层次结构中的三个级别为： 续）
认股权证负债
下表包括了公司权证责任的公允价值变动摘要，根据使用重要不可观测输入（3级）计量的公允价值，截至2024年9月30日和2023年。截至2024年9月30日，普通权证的公允价值是根据以下关键输入和假设使用Black-Scholes模型确定的：普通股价格为$
截至2024年6月30日，公司修改了某些认股权协议条款，删除了某些行使价格重设、重新定价权以及股份调整规定（“重设规定”），并进行了反向拆分，同时对认股权进行了其他修订。2024年4月，公司实施了2024年4月反向股票拆分，从而取消了这些重设规定（“重设修正生效日期”），依据某些认股权协议规定，向发行认股权购买额外的份额。
截至九月三十日止九个月。 | ||||||
（单位：千元） |
| 2024 | 2023 | |||
期初余额 | $ | |
| $ | | |
新增 |
| |
| | ||
公允价值变动 |
| |
| ( | ||
行使权证负债 |
| ( |
| ( | ||
回购 | ( | — | ||||
将负债权证转换为股权权证 | ( | — | ||||
期末余额 | $ | | $ | | ||
认股权责任的公允价值变动已记录在综合损益表中的认股权责任的公允价值变动中。
21
6. | 可转换可赎回优先股和股东权益 |
B系列优先股，B系列优先股认股权证
2023年10月16日，公司完成了一项总额为的公开发行
行使B系列优先股权证
2023年12月6日，公司与B系列优先股权证持有人签署了诱因协议（“诱因协议”），将行使价格降至每股$
由于新普通股认股权证中包含某些价格保护措施，这些认股权证不符合股权分类标准，因此需要按负债处理。自2023年12月31日之前行使的Series b特许股票认股权所得总收入为
发行成本$
22
6. | 可转换可赎回优先股和股东权益， 续） |
通过从发行日至2023年12月31日的各个日期，持有者的
该
在截至2024年9月30日的九个月期间，系列b优先股的持有人行使了他们的warrants转换为
发行费用$
优先b系列股转换
在截止2024年9月30日的九个月内，
2024年2月系列 b 优先股和系列 b 优先股 warrants 回购
2024年2月13日，公司与其系列 b 优先股和系列 b 优先股 warrants 持有者达成协议，公司同意回购
其他被视为的分红派息
截至2024年9月30日的九个月期间，所有系列b优先股的折旧和折价攀升金额为$
被视为分红派息的总额（如本节讨论的，系列b优先股的转换以及2024年2月系列b优先股和系列b优先股warrants回购部分）为$
23
6. | 可转换可赎回优先股和股东权益， 续） |
普通股
2018年长期股票激励计划
2018年1月30日，公司董事会批准成立公司的2018年长期股票激励计划（“LTIP”）并终止其分拆计划。根据LTIP，可能根据限制性股票或期权的奖励而发行的普通股（包括期权下的股票）总量将限制为
截至2024年9月30日的九个月内与限制股票奖励相关活动的汇总如下：
|
| 0.1 | |||
股票奖励 | 股份 | 授予日期公允价值 | |||
截至2024年1月1日未归属 | | $ | | ||
已获准 |
| | $ | | |
已解决的 |
| ( | $ | | |
取消 |
| ( | $ | | |
截至2024年9月30日尚未授予 |
| | $ | | |
截至2024年9月30日，未摊销的与未归属限制性股票奖励相关的薪酬成本约为$
截至2024年9月30日的九个月内，
24
6. | 可转换赎回优先股和股东权益, 继续 |
2020年股权激励计划
2024年9月30日的摘要如下:
0.1 | |||||
股票单位 |
| 股份 |
| 授予日期公允价值 | |
截至2024年1月1日未归属 |
| $ | | ||
已获准 |
| — | $ | — | |
已解决的 |
| ( | $ | | |
取消 |
| — | $ | — | |
截至2024年9月30日尚未归属 |
| — | $ | — | |
截至2024年9月30日，有
截至2024年9月30日的九个月内，
招聘奖励
于2021年9月13日，公司发行了
On September 30, 2024, the Company issued
2022年计划
以下是截至2024年9月30日结束的九个月内，有关公司2022年技术团队留任计划（“2022计划”）的受限股票单位活动总结：
加权平均 | |||||
股票单位 |
| 股份 |
| 授予日期公允价值 | |
2024年1月1日非已获得 |
| | $ | | |
已授予 |
| — | $ | — | |
已获得 |
| ( | $ | | |
被放弃 |
| — | $ | — | |
截至2024年9月30日尚未授予 |
| | $ | | |
截至2024年9月30日，与未归还限制性股票单位相关的未摊销补偿成本约为$
25
6. | 可转换可赎回优先股和股东权益， 续 |
在截至2024年9月30日的九个月中，
2023 年 2 月发售
2023年1月31日，公司与某些机构投资者签订了证券购买协议，根据该协议，公司同意通过注册直接发行向这些投资者发行和出售（i），
2023 年 2 月 3 日，公司完成了 2023 年 2 月的发行，并获得了约美元的净收益
此外，在2023年2月的发行中，公司于2023年1月31日与Maxim签订了配售代理协议，根据该协议，Maxim同意在本次发行中 “尽最大努力” 担任配售代理人，(ii) 公司同意向Maxim支付总费用，相当于
2023 年 3 月发售
2023年3月27日，公司与某些机构投资者签订了证券购买协议，根据该协议，公司同意通过注册直接发行向这些投资者发行和出售（i），
2023年3月29日，公司完成了2023年3月的发行，并获得了约美元的净收益
2023 年 4 月发售
2023年4月7日，公司与某些机构投资者签订了证券购买协议，根据该协议，公司通过注册直接发行向这些投资者发行和出售（i），
2023 年 4 月 12 日，公司完成了 2023 年 4 月的发行，净收益约为 $
2023 年 10 月认股权证回购
2023年10月16日，公司及其某些普通股认股权证持有人达成了一项安排，公司同意回购可行使的未偿还普通股购买权证，总额不超过
26
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
6. | Convertible Redeemable Preferred Stock and Stockholders’ Equity, continued |
February 2024 Issuance of Common Stock and Pre-Funded Common Stock Warrants
On February 13, 2024, the Company consummated a public offering (the “February 2024 Public Offering”) of
Of the gross broker fees and related expenses of approximately $
March 2024 Issuance of Common Stock, Prefunded Common Stock Warrants and Common Stock Warrants
On March 26, 2024, the Company entered into a Securities Purchase Agreement with certain purchasers where the Company issued
Of the gross broker fees and related expenses of approximately $
April 2024 Issuances of Common Stock and Common Stock Warrants
On April 17, 2024, the Company entered into a securities purchase agreement with certain accredited investors, pursuant to which the Company agreed to issue and sell to such investors (i) in a registered direct offering,
27
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
6. | Convertible Redeemable Preferred Stock and Stockholders’ Equity, continued |
On April 19, 2024, the Company entered into a securities purchase agreement with certain accredited investors, pursuant to which the Company agreed to issue and sell to such investors (i) in a registered direct offering,
On April 26, 2024, the Company entered into a securities purchase agreement with certain accredited investors, pursuant to which the Company agreed to issue and sell to such investors (i) in a registered direct offering,
May 2024 Issuances of Common Stock and Common Stock Warrants
On May 13, 2024, the Company entered into a securities purchase agreement with certain accredited investors, pursuant to which the Company agreed to issue and sell to such investors (i) in a registered direct offering,
On May 15, 2024, the Company entered into a securities purchase agreement with certain accredited investors, pursuant to which the Company agreed to issue and sell to such investors (i) in a registered direct offering,
For the three months ended June 30, 2024, the Company’s board of directors approved the issuance of a total of
Exchange Agreements
On September 10, 2024, the Company entered into exchange agreements (each, an “Exchange Agreement”) with certain holders (the “Holders”) of common stock purchase warrants exercisable for an aggregate of up to
28
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
6.Convertible Redeemable Preferred Stock and Stockholders’ Equity, continued
Warrant Side Letter Agreements
Also on September 10, 2024, following completion of the transactions contemplated by the September 2024 Warrant Inducement (see below), the Company entered into side letter agreements (each, a “Side Letter Agreement”) with the Holders with respect to (i) those certain common stock purchase warrants of the Company, originally issued to the Holders on March 27, 2024, as amended (the “March 2024 Warrants”), (ii) those certain common stock purchase warrants of the Company, originally issued to the Holders on April 19, 2024, as amended (the “1st April 2024 Warrants”), (iii) those certain common stock purchase warrants of the Company, originally issued to the Holders on April 23, 2024 (the “2nd April 2024 Warrants”), (iv) those certain common stock purchase warrants of the Company, originally issued to the Holders on April 30, 2024 (the “3rd April 2024 Warrants”), (v) those certain common stock purchase warrants of the Company, originally issued to the Holders on May 15, 2024 (the “1st May 2024 Warrants”), and (vi) those certain common stock purchase warrants of the Company, originally issued to the Holders on May 17, 2024 (the “2nd May 2024 Warrants”, and collectively with the March 2024 Warrants, the 1st April 2024 Warrants, the 2nd April 2024 Warrants, the 3rd April 2024 Warrants, and the 1st May 2024 Warrants, the “Original Warrants”), which Holders are also parties to (i) that certain securities purchase agreement, dated as of March 26, 2024 (the “March 2024 Purchase Agreement”), (ii) that certain securities purchase agreement, dated as of April 17, 2024 (the “1st April 2024 Purchase Agreement”), (iii) that certain securities purchase agreement, dated as of April 19, 2024 (the “2nd April 2024 Purchase Agreement”), (iv) that certain securities purchase agreement, dated as of April 26, 2024 (the “3rd April 2024 Purchase Agreement”), (v) that certain securities purchase agreement, dated as of May 13, 2024 (the “1st May 2024 Purchase Agreement”), and (vi) that certain securities purchase agreement, dated as of May 15, 2024 (the “2nd May 2024 Purchase Agreement”, and collectively with the March 2024 Purchase Agreement, the 1st April 2024 Purchase Agreement, the 2nd April 2024 Purchase Agreement, the 3rd April 2024 Purchase Agreement, and the 1st May Purchase Agreement, the “Original Purchase Agreements”) with the Company.
Pursuant to the Side Letter Agreements, (a) the Holders agreed to (i) amend the “Fundamental Transaction” provisions in the Original Warrants, so that the “Black Scholes Value” clauses in such provisions will be removed in their entirety, effective immediately following receipt of stockholder approval of (a) the issuance of the New Warrant Shares (as defined below) and (b) the issuance of shares of common stock pursuant to the alternative cashless exercise provisions of the 1st April 2024 Warrants, the 2nd April 2024 Warrants, the 3rd April 2024 Warrants, the 1st May 2024 Warrants, and the 2nd May 2024 Warrants, (ii) remove the “Stockholder Meeting” provisions in the March 2024 Purchase Agreement, effective immediately, (iii) amend the “Stockholder Meeting” provisions in the remaining Original Purchase Agreements such that the Company is first obligated to call a stockholder meeting to approve the issuance of the shares of common stock issuable upon exercise of the Original Warrants no later than December 31, 2024, and thereafter, to re-call a stockholder meeting, if necessary, every six months until such stockholder approval is obtained, and (iv) remove the “Subsequent Equity Sales” and “Registration Statement” provisions in the March 2024 Purchase Agreement; and (b) as inducements to and in consideration for each Holder’s agreement to amend the Original Warrants and the Original Purchase Agreements in accordance with the applicable Side Letter Agreement, the Company agreed to issue to the Holders an aggregate of
Once exercisable, the New Warrants may be exercised, in certain circumstances, on a cashless basis pursuant to the formula contained in the New Warrants. The holder of a New Warrant may also effect an “alternative cashless exercise” commencing on the Stockholder Approval Date. In such event, the aggregate number of shares of common stock issuable in such alternative cashless exercise pursuant to any given notice of exercise electing to effect an alternative cashless exercise shall equal the product of (x) the aggregate number of shares of common stock that would be issuable upon exercise of the New Warrant in accordance with the terms of the New Warrant if such exercise were by means of a cash exercise rather than a cashless exercise and (y) .
29
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
6. | Convertible Redeemable Preferred Stock and Stockholders’ Equity, continued |
The fair value of the
For the three months ended September 30, 2024, the Company’s board of directors approved the issuance of a total of
Warrants for Shares of Common Stock
A summary of the warrant activity and related information for the nine months ended September 30, 2024 and the year ended 2023 is provided as follows.
In connection with February 2023 Offering, the Company issued common stock purchase warrants to investors to purchase up to
In connection with March 2023 Offering, the Company issued common stock purchase warrants to investors to purchase up to
May 2023 Warrant Inducement
On May 15, 2023, the Company entered into warrant exercise inducement offer letters with the holders of common stock purchase warrants exercisable for an aggregate of up to
Each May Inducement Warrant is immediately exercisable upon issuance and will expire on the fifth anniversary of its issuance. The exercise price of the May Inducement Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company’s common stock. The May Inducement Warrants are callable by the Company at a redemption price of $
30
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
6. | Convertible Redeemable Preferred Stock and Stockholders’ Equity, continued |
July 2023 Warrant Inducement
On July 26, 2023, the Company entered into warrant exercise inducement offer letters (the “July Inducement Letters”) with holders of the May Inducement Warrants pursuant to which the Company agreed to issue new inducement warrants (the “July Inducement Warrants”) to purchase a number of shares of common stock equal to
Each July Inducement Warrant was immediately exercisable upon issuance and will expire on the fifth anniversary of its issuance. The exercise price of the July Inducement Warrants is subject to appropriate adjustment in the event of recapitalization events, stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting the Company’s common stock. The July Inducement Warrants are callable by the Company at a redemption price of $
During the three months ended March 31, 2023,
In connection with the January 2024 Promissory Notes, the Company issued common stock purchase warrants to investors to purchase up to
In connection with February 2024 Public Offering, the Company issued common stock purchase warrants to investors to purchase up to
In connection with March 2024 Offering, the Company issued common stock purchase warrants to investors to purchase up to
31
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
6. | Convertible Redeemable Preferred Stock and Stockholders’ Equity, continued |
On March 26, 2024, the Company entered into a warrant amendment agreement (the “Warrant Amendment Agreement”) with certain holders of (i) the New Common Stock Warrants, (ii) the common stock purchase warrants dated January 23, 2024 (the “January 2024 Warrants”), and (iii) the February Common Warrants (together with the New Common Stock Warrants and the January 2024 Warrants, the “Original Warrants”), whereby the holders agreed to (i) amend the New Common Stock Warrants and the January 2024 Warrants so such warrants shall not be exercisable until one or more certificates of amendment to the Company’s certificate of incorporation, as amended, are filed with the Secretary of State of the State of Delaware to effectuate an increase in authorized shares of capital stock of the Company and a reverse stock split of the Company’s outstanding shares of common stock; and (ii) remove certain exercise price reset, right to reprice and/or share adjustment provisions in the Original Warrants, to be effective following the first adjustments following the April 2024 Reverse Stock Split.
In connection with the Initial April 2024 Registered Direct Offering and Concurrent Private Placement, the Company issued Common Stock Purchase Warrants to investors to purchase up to
In connection with the Second April 2024 Registered Direct Offering and Concurrent Private Placement, the Company issued Common Stock Purchase Warrants to investors to purchase up to
In connection with the Third April 2024 Registered Direct Offering and Concurrent Private Placement, the Company issued Common Stock Purchase Warrants to investors to purchase up to
In connection with the Initial May 2024 Registered Direct Offering and Concurrent Private Placement, the Company issued Common Stock Purchase Warrants to investors to purchase up to
In connection with the Second May 2024 Registered Direct Offering and Concurrent Private Placement, the Company issued Common Stock Purchase Warrants to investors to purchase up to
32
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
6.Convertible Redeemable Preferred Stock and Stockholders’ Equity, continued
September 2024 Warrant Inducement
On September 10, 2024, the Company entered into warrant exercise inducement offer letters (the “September 2024 Inducement Letters”) with holders of the Exchange Warrants pursuant to which the Company agreed to issue new inducement warrants (the “September 2024 Inducement Warrants”) to purchase a number of shares of common stock equal to
The grant date fair value of the
During the three months ended September 30, 2024,
Information regarding warrants for common stock outstanding and exercisable as of September 30, 2024 is as follows:
Warrants | Weighted Average | Warrants | ||||
Exercise | Outstanding as of | Remaining | Exercisable as of | |||
Price |
| September 30, 2024 |
| Life (years) |
| September 30, 2024 |
$ |
| |
|
| | |
$ |
| |
|
| | |
$ |
| |
|
| | |
$ |
| |
|
| | |
$ |
| |
|
| | |
$ |
| |
|
| |
| * | Weighted average |
Warrants exercisable as of September 30, 2024 exclude warrants to purchase
33
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
6.Convertible Redeemable Preferred Stock and Stockholders’ Equity, continued
Information regarding warrants for common stock outstanding and exercisable as of December 31, 2023 is as follows:
| Warrants |
| Weighted Average |
| Warrants | |
Exercise | Outstanding as of | Remaining | Exercisable as of | |||
Price | December 31, 2023 | Life (years) | December 31, 2023 | |||
$ |
| |
|
| | |
$ |
| |
|
| | |
$ |
| |
|
| | |
$ |
| |
|
| | |
$ |
| |
|
| | |
$ |
| |
|
| |
| * | Weighted Average |
Warrants exercisable as of December 31, 2023 exclude warrants to purchase
7. | Income Taxes |
The Company recorded
The Company’s effective tax rate was
For interim periods, the Company estimates its annual effective income tax rate and applies the estimated rate to the year-to-date income or loss before income taxes. The Company also computes the tax provision or benefit related to items reported separately and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company also recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur.
As of September 30, 2024 and December 31, 2023, the Company retains a full valuation allowance on its deferred tax assets. The realization of the Company’s deferred tax assets depends primarily on its ability to generate taxable income in future periods. The amount of deferred tax assets considered realizable in future periods may change as management continues to reassess the underlying factors it uses in estimating future taxable income.
The provision for income taxes for the three and nine months ended September 30, 2024 and 2023 was calculated on a jurisdiction basis.
34
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
8. | Commitments and Contingencies |
Operating Leases
The Company leases office space under a non-cancellable operating lease that expires in and has an option to renew this lease, with renewal rates to be negotiated. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date we take possession of the property. At lease inception, we determine the lease term by assuming the exercise of those renewal options that are reasonably assured. The exercise of lease renewal options is at our sole discretion. The lease term is used to determine whether a lease is financing or operating and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Leases with an initial term of
The following table reflects our lease assets and our lease liabilities at September 30, 2024 and December 31, 2023 (in thousands):
| September 30, |
| December 31, | |||
2024 | 2023 | |||||
Assets: | ||||||
$ | | $ | | |||
Liabilities: |
|
|
|
| ||
$ | | $ | — | |||
$ | | $ | | |||
Operating lease right-of-use assets are included in other assets. Operating lease liabilities, current, are included in accrued liabilities and Operating lease liabilities, non-current, are include in other liabilities on the condensed consolidated balance sheets.
Lease Costs:
The components of lease costs were as follows (in thousands):
| Three Months Ended |
| Nine Months Ended | |||
September 30, 2024 | September 30, 2024 | |||||
Operating lease cost | $ | | $ | | ||
Short term lease cost | $ | | | |||
Total lease cost | $ | | $ | | ||
As of September 30, 2024, the maturity of liabilities was as follows (in thousands):
Payments due in: |
| ||
Year ending December 31, 2024 (3 months remaining) |
| $ | |
Year ending December 31, 2025 |
| | |
Year ending December 31, 2026 | | ||
Year ending December 31, 2027 | | ||
Year ending December 31, 2028 | | ||
Thereafter | | ||
Total minimum lease payments | | ||
Less: Amounts representing interest |
| ( | |
Present value of capital lease obligations | $ | |
35
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
8. | Commitments and Contingencies, continued |
Lease Term and Discount Rate:
| September 30, 2024 | ||
Weighted-average remaining lease term (in years) |
| ||
Weighted-average discount rate |
| | % |
The discount rate was calculated by using the Company’s estimated incremental borrowing rate.
Other Information:
Supplemental cash flow information related to leases was as follows (in thousands):
| Three Months Ended |
| Nine Months Ended | |||
September 30, 2024 | September 30, 2024 | |||||
Operating cash outflows from operating leases | $ | | $ | | ||
Contingencies
In the normal course of business, the Company may become involved in legal proceedings. The Company will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of a possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. The accrual for a litigation loss contingency might include, for example, estimates of potential damages, outside legal fees and other directly related costs expected to be incurred.
The Company’s management does not believe that any such matters, individually or in the aggregate, will have a materially adverse effect on the Company’s condensed consolidated financial statements.
9. | Related Parties |
Helge Kristensen
Mr. Kristensen has served as a member of the Company’s board of directors since 2010. Mr. Kristensen serves as vice president of Hansong Technology, an original device manufacturer of audio products based in China, president of Platin Gate Aps, a company with focus on service-branding in lifestyle products as well as pro line products based in Denmark and co-founder and director of Inizio Capital, an investment company based in the Cayman Islands.
For the three months ended September 30, 2024 and 2023, Hansong Technology purchased modules from the Company of approximately $
For the nine months ended September 30, 2024 and 2023, Hansong Technology purchased modules from the Company of approximately $
36
WISA TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2024 and 2023
(unaudited)
9. | Related Parties, continued |
As of September 30, 2024 and December 31, 2023, Mr. Kristensen owned less than
David Howitt
Mr. Howitt has served as a member of the Company’s board of directors since December 2021. Mr. Howitt is founder and CEO of Meriwether Group LLC, (“Meriwether”), a strategic consulting firm that works with disruptive consumer brands by integrating their visions, developing growth strategies, scaling their brands, and increasing revenue in order to build enterprise value. Meriwether is the manager of Meriwether Accelerators LLC. Meriwether which is also majority-owned by Mr. Howitt, owns a
On September 8, 2023, the Company entered into a Loan and Security Agreement with Meriwether Hero Fund. Pursuant to the Loan and Security Agreement, Meriwether Hero Fund provided the Company with a term loan in the principal amount of $
As of September 30, 2024 and December 31, 2023, Mr. Howitt owned less than
10. | Segment Information |
The Company operates in
Net revenue from customers is designated based on the geographic region to which the product is delivered. Net revenue by geographic region for the three and nine months ended September 30, 2024 and 2023 was as follows:
For the Three Months Ended | For the Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
(in thousands) |
| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Asia Pacific | $ | | $ | | $ | | $ | | ||||
North America | | | | | ||||||||
Europe |
| |
| |
| |
| | ||||
Other | — | | — | | ||||||||
Total | $ | | $ | | $ | | $ | | ||||
Substantially all of our long-lived assets are located in the United States.
11. | Subsequent Events |
Notes Receivable - Maturity Date
On October 23, 2024, the Company and the Borrower agreed to extend the maturity dates of the June 2024 Note, August 2024 Note and September 2024 Note to January 31, 2025.
37
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Cautionary Notice Regarding Forward Looking Statements
This Report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as “anticipate,” “believe,” “estimate,” “intend,” “could,” “should,” “would,” “may,” “seek,” “plan,” “might,” “will,” “expect,” “predict,” “project,” “forecast,” “potential,” “continue,” negatives thereof or similar expressions. These forward-looking statements are found at various places throughout this Report and include information concerning possible or assumed future results of WiSA Technologies, Inc.’s (“WiSA”, the “Company”, “our”, “us” or “we”) operations; business strategies; future cash flows; financing plans; plans and objectives of management; any other statements regarding future operations, future cash needs, business plans and future financial results, and any other statements that are not historical facts.
From time to time, forward-looking statements also are included in our other periodic reports on Form 10-K, 10-Q and 8-K, in our press releases, in our presentations, on our website and in other materials released to the public. Any or all of the forward-looking statements included in this Report and in any other reports or public statements made by us are not guarantees of future performance and may turn out to be inaccurate. These forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, including risks related to market, economic and other conditions; WiSA’s ability to continue as a going concern; WiSA’s ability to maintain the listing of its common stock on Nasdaq; WiSA’s ability to manage costs and execute on its operational and budget plans; and, WiSA’s ability to achieve its financial goals. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. All subsequent written and oral forward-looking statements concerning other matters addressed in this Report and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Report.
Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.
Overview
We are an emerging technology company and our primary business focus is to enable immersive, wireless sound technology for intelligent devices and next-generation home entertainment systems. Our first generation product, which we continue to sell to consumer electronics companies, is based on our proprietary wireless modules. In 2023 we introduced our second generation technology, WiSA E. WiSA E is a proprietary technology that delivers seamless integration across platforms and devices, allowing for interoperable high-quality audio. WiSA E is System-on-Chip (“SoC”) agnostic, compatible with a wide range of SoCs and Wi-Fi agnostic, functioning efficiently across Wi-Fi compliant chips. Designed to be embedded into various devices, including TVs, mobile devices, set-top boxes, and projectors it provides interoperability between WiSA E audio source devices and playback equipment such as speakers, soundbars, subwoofers, smart speakers, and headphones, ensuring cost-effectiveness without compromising quality or performance.
To date, our operations have been funded through sales of our common and preferred equity, proceeds from the exercise of warrants, sale of debt instruments, and revenue from the sale of our products. Our condensed consolidated financial statements contemplate the continuation of our business as a going concern. However, we are subject to the risks and uncertainties associated with an emerging business, as noted above we have no established source of capital, and we have incurred recurring losses from operations since inception.
Comparison of the Three and Nine Months Ended September 30, 2024 and 2023
Revenue
Revenue for the three months ended September 30, 2024 was $1,172,000, an increase of $403,000, or 52%, compared to revenue for the three months ended September 30, 2023 of $769,000. The increase in revenue was a result of an increase in Components sales of $726,000, partially offset by a decrease in Consumer Audio Product sales of $323,000.
38
Revenue for the nine months ended September 30, 2024 was $1,772,000, an increase of $109,000, or 7%, compared to the revenue for the nine months ended September 30, 2023 of $1,663,000. The increase in revenue was a result of an increase in Component sales of $558,000, partially offset by a decrease in Consumer Audio Product sales of $449,000.
Gross Profit and Operating Expenses
Gross Profit (Deficit)
Gross profit for the three months ended September 30, 2024 was $226,000 compared to a gross deficit of ($1,669,000) for the three months ended September 30, 2023. The gross margin (deficit) as a percent of sales was 19% for the three months ended September 30, 2024, compared to (217%) for the three months ended September 30, 2023. The improvement in gross profit and gross margin as a percent of sales compared to the prior period is mainly attributable to: (a) an increase of $403,000 in revenue between comparable periods and (b) the three months ended September 30, 2023 included a $1.4 million increase in inventory reserves as a result of certain excess raw materials, primarily attributable to the out of balance inventory associated with longer lead time semiconductor chips, whereas the three months ended September 30, 2024 included a $22,000 increase in inventory reserves.
Gross margin for the nine months ended September 30, 2024 was $154,000, compared to a gross deficit of ($3,123,000) for the nine months ended September 30, 2023. The gross margin (deficit) as a percent of sales was 9% for the nine months ended September 30, 2024, compared to (188%) for the nine months ended September 30, 2023. The improvement in gross profit and gross margin as a percent of sales compared to the prior period is mainly attributable to the fact that the nine months ended September 30, 2023 included a $2.8 million increase in inventory reserves as a result of certain excess raw materials, primarily attributable to the out of balance inventory associated with longer lead time semiconductor chips, whereas the nine months ended September 30, 2024 included a $22,000 increase in inventory reserves.
Research and Development
Research and development expenses for the three months ended September 30, 2024 were $2,225,000, an increase of $387,000, compared to the research and development expenses for the three months ended September 30, 2023 of $1,838,000. The increase in research and development expenses is primarily related to increased salary and benefit expense of $225,000, and increased recruiting fees and consulting expenses of $103,000 and $40,000, respectively.
Research and development expenses for the nine months ended September 30, 2024 were $5,729,000, an increase of $65,000 compared to the research and development expenses for the nine months ended September 30, 2023 of $5,664,000. The increase in research and development expenses is primarily related to increased salary and benefit expense of $230,000 and recruiting fees of $84,000, offset partially by reduced consulting fees, legal fees and stock-based compensation of $130,000, $89,000 and $88,000, respectively.
Sales and Marketing
Sales and marketing expenses for the three months ended September 30, 2024 were $983,000, a decrease of $421,000 compared to the sales and marketing expenses for the three months ended September 30, 2023 of $1,404,000. The decrease in sales and marketing expenses is primarily related to decreased salary and benefit expense of $151,000 and decreased consulting expenses, tradeshow expenses and advertising expenses of $61,000, $44,000 and $37,000, respectively.
Sales and marketing expenses for the nine months ended September 30, 2024 were $2,777,000, a decrease of $1,010,000 compared to the sales and marketing expenses for the nine months ended September 30, 2023 of $3,787,000. The decrease in sales and marketing expenses is primarily related to decreased salary and benefit expense of $459,000 and decreased website expenses, consulting expenses, stock-based compensation, and public relations expenses of $155,000, $117,000, $48,000 and $47,000, respectively.
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General and Administrative
General and administrative expenses for the three months ended September 30, 2024 were $2,261,000, an increase of $833,000, compared to the general and administrative expenses for the three months ended September 30, 2023 of $1,428,000. The increase in general and administrative expenses is primarily related to increased investor relations expenses of $736,000, which includes stock-based compensation charges of $156,000, and increased legal fees of $202,000, offset partially by decreased stock-based compensation expense of $128,000.
General and administrative expenses for the nine months ended September 30, 2024 were $6,454,000, an increase of $2,194,000, compared to the general and administrative expenses for the three months ended September 30, 2023 of $4,260,000. The increase in general and administrative expenses is primarily related to increased investor relations expenses of $1,728,000, which includes stock-based compensation charges of $312,000, and increased legal fees $336,000, offset partially by decreased stock-based compensation expense of $381,000.
Interest Income (Expense), net
Interest income, net for the three months ended September 30, 2024 was $9,000 compared to net interest expense of $52,000 for the three months ended September 30, 2023, a net change of $61,000. Interest expense, net for the nine months ended September 30, 2024 was $1,260,000, an increase of $448,000 compared to the interest expense for the nine months ended September 30, 2023 of $812,000.
The increase in interest expense, net for the nine months ended September 30, 2024, was primarily due to the amortization of debt discounts associated with the January 2024 Promissory Note in the principal amount of $1,000,000 that the Company incurred in January 2024 and repaid in full in January 2024.
Change in Fair Value of Warrant Liability
Change in fair value of warrant liability for the three months ended September 30, 2024 was a gain of $6,000, compared to a gain of $284,000 for the three months ended September 30, 2023. The change in fair value of the warrant liabilities for the three months ended September 30, 2024 was primarily due to the decrease in the price of our common stock at September 30, 2024 compared to the price of our common stock on the date of the warrant issuance as well as the decline in our common stock price from June 30, 2024, related to existing warrant liabilities.
Change in fair value of warrant liability for the nine months ended September 30, 2024 was a loss of $29,120,000 compared to a gain of $6,134,000 for the nine months ended September 30, 2023. The change in fair value of the warrant liability for the nine months ended September 30, 2024 was due to the issuance of additional warrants to purchase 5,602,693 shares of common stock and the subsequent valuing of such warrants. The additional warrants were issued as a result of provision in certain of the warrant agreements that was triggered following the Company’s reverse stock split that occurred in April 2024. The change in fair value of the warrant liabilities for the nine months ended September 30, 2023 was due to the issuance of warrants in February 2023 and the subsequent decrease in the price of our common stock at September 30, 2023 compared to the price of our common stock on the date of the warrant issuance as well as the decline in our common stock price from December 31, 2022, related to existing warrant liabilities.
Loss on Debt Extinguishment
During the three and nine months ended September 30, 2024, the Company recorded a loss on debt extinguishment of $0. During the three and nine months ended September 30, 2023, the Company recorded a loss on debt extinguishment of $0 and $837,000. The loss is directly related to the Company’s April 2023 repayment of the Convertible Note in the amount of $1,656,744. The repayment of the entirety of the outstanding balance of such note, included the unpaid principal, interest through the payoff date, and a pre-payment premium of $276,000. The loss also includes the expensing of the related unamortized debt discounts totaling $894,000, offset partially by a $333,000 gain on termination of a derivative liability that was established in connection with the Convertible Note.
Other Income (Expense), net
Other income, net for the three months ended September 30, 2024 was $136,000 compared to net interest expense of $4,000 for the three months ended September 30, 2023, a net change of $140,000. Other income, net for the nine months ended September 30, 2024 was $136,000, an increase of $143,000 compared to the other expense, net for the nine months ended September 30, 2023 of $7,000.
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The increase in other income, net for the three and nine months ended September 30, 2024, was due to the receipt of an Employee Retention Credit (“ERC”) refund of $141,000, net of fees. The ERC refund was for the three month period ended June 30, 2020.
Liquidity and Capital Resources
Cash and cash equivalents as of September 30, 2024 were $3,921,000 compared to $411,000, as of December 31, 2023.
We recorded a net loss of $45,050,000 for the nine months ended September 30, 2024 and used net cash in operating activities of $13,276,000. We incurred a net loss of $12,358,000 for the nine months ended September 30, 2023 and used net cash in operating activities of $12,101,000. Excluding non-cash adjustments, the primary reasons for the increase in the use of net cash from operating activities during the nine months ended September 30, 2024, was related to an increase in prepaid expenses and inventories, which was partially offset by a decrease in accounts payable.
We have financed our operations to date primarily through the issuance of equity securities, proceeds from the exercise of warrants, sale of debt instruments and revenue from the sale of our products. In January 2024, we received gross proceeds of $600,000 from the issuance of promissory notes and common stock purchase warrants to certain accredited investors. In February 2024, we received gross proceeds of approximately $10.0 million from the public offering of 1,025,600 units, with each unit consisting of one share of common stock (or pre-funded warrant in lieu thereof) and one warrant, each to purchase one (1) share of common stock. In March 2024 we received net proceeds of approximately $2.3 million from the issuance of 417,833 shares of common stock, 93,342 pre-funded common stock warrants and the issuance of 511,175 warrants to purchase common stock. On April 19, 2024, we received net proceeds of approximately $591,000 from the issuance of 225,834 shares of common stock and the issuance of 225,834 warrants to purchase common stock. On April 23, 2024, we received net proceeds of approximately $1.6 million from the issuance of 361,904 shares of common stock and the issuance of 542,856 warrants to purchase common stock. On April 30, 2024, we received net proceeds of approximately $2.1 million from the issuance of 418,845 shares of common stock and the issuance of 418,845 warrants to purchase common stock. On May 15, 2024, we received net proceeds of approximately $2.3 million from the issuance of 785,000 shares of common stock and the issuance of 785,000 warrants to purchase common stock. On May 17, 2024, we received net proceeds of approximately $2.1 million from the issuance of 675,000 shares of common stock and the issuance of 675,000 warrants to purchase common stock. In September 2024, we received net proceeds of approximately $2.4 million from the exercise of 1,193,721 warrants to purchase common stock. We will need to raise additional proceeds via the issuance of equity securities and/or the sale of debt instruments in the fourth quarter of 2024 to fund operations for fiscal year 2025.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information required by this Item.
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Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission (“SEC”) rules and forms and to ensure that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures. Based on the foregoing evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2024, our disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our management, including our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), does not expect that our disclosure controls and procedures will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Changes in Internal Controls
There were no changes in the Company’s internal control over financial reporting that occurred during the three months ended September 30, 2024 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
From time to time we may be involved in various claims and legal actions arising in the ordinary course of our business. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, or any of our subsidiaries in which an adverse decision could have a material adverse effect upon our business, operating results, or financial condition.
Item 1A. Risk Factors
As a smaller reporting company, the Company is not required to include the disclosure required under this Item 1A.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Information required by Item 701 of Regulation S-K as to all unregistered sales of equity securities of the Company during the period covered by this Report have previously been included in Current Reports on Form 8-K filed with the SEC.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
WISA Technologies, Inc. | ||
Date: November 14, 2024 | By: | /s/ Brett Moyer |
Brett Moyer | ||
Chief Executive Officer | ||
(Duly Authorized Officer and Principal Executive Officer) | ||
Date: November 14, 2024 | By: | /s/ Gary Williams |
Gary Williams | ||
Vice President of Finance and Chief Accounting Officer | ||
(Duly Authorized Officer, Principal Financial Officer and Principal Accounting Officer) | ||
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