Revenue and Profit - Revenue for the year ended December 31, 2024 was $2,674,000, an increase of $591,000 or 28% compared to $2,083,000 for the year ended December 31, 2023[101] - Gross profit for the year ended December 31, 2024 was $376,000, an increase of $3,833,000 compared to a gross deficit of $3,457,000 for the year ended December 31, 2023, resulting in a gross margin of 14%[103] Expenses - Research and development expenses for the year ended December 31, 2024 were $7,818,000, an increase of $362,000 compared to $7,456,000 for the year ended December 31, 2023[104] - Sales and marketing expenses for the year ended December 31, 2024 were $3,974,000, a decrease of $1,203,000 compared to $5,177,000 for the year ended December 31, 2023[105] - General and administrative expenses for the year ended December 31, 2024 were $9,722,000, an increase of $4,355,000 compared to $5,367,000 for the year ended December 31, 2023[106] - Interest expense for the year ended December 31, 2024 was $1,272,000 compared to $932,000 for the year ended December 31, 2023[107] Cash Flow - Cash and cash equivalents as of December 31, 2024 were $3,330,000, compared to $411,000 as of December 31, 2023[115] - Net cash used in operating activities for the year ended December 31, 2024 was $17,526,000, compared to $14,826,000 for the year ended December 31, 2023[116] Other Financial Information - The company recorded a deemed dividend of $5,842,000 during the year ended December 31, 2024 related to the repurchase of Series B Preferred Stock shares[112] - The company expects operating losses to continue in the foreseeable future due to additional costs related to research and development and plans to expand its product portfolio[119]

Group 1: Core Insights - WiSA Technologies has integrated its WiSA E wireless multichannel audio software into Sagemcom's next-generation Video Soundbox (VSB) set-top box, enhancing the audio experience for consumers by enabling wireless transmission of Dolby Atmos audio [1][5] - Sagemcom's VSB combines a high-quality soundbar and set-top box, providing a space-saving solution that simplifies installation and reduces clutter, making it an affordable upgrade for home entertainment systems [2][3] - The incorporation of WiSA's software allows for superior wireless connectivity and high-quality audio, reducing material costs for manufacturers and accelerating time-to-market for new products [3][5] Group 2: Market Opportunities - The partnership between WiSA and Sagemcom represents a significant opportunity for WiSA to expand its market presence as demand for wireless audio solutions grows [5][6] - Increased adoption of WiSA E software is expected as more companies integrate it into their products, streamlining design and providing consumers with a sophisticated entertainment experience [5][6] Group 3: Stock Performance - WiSA's stock has experienced a significant decline of 87.3% over the past year, contrasting with the industry's growth of 29.5% [7] - WiSA currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook for the stock [9]

Key Points Industry/Company Involved - **Company**: WiSA Technologies, Inc. (NASDAQ: WISA) - **Industry**: Merger & Acquisition (M&A) - **Target**: CompuSystems, Inc. [1] Core Views and Arguments - **Forward-Looking Statements**: The call includes forward-looking statements subject to risks and uncertainties. [1] - **Acquisition Details**: WiSA Technologies plans to acquire CompuSystems. [3] - **Participants**: Nate Bradley (CEO, Data Vault Holdings), Mark LoGiurato (CEO, CompuSystems), Brett Moyer (CEO and President, WiSA Technologies), and Michael Fazio (Controlling Investor, CompuSystems) participated in the call. [4] - **No Obligation to Update**: WiSA assumes no obligation to update forward-looking statements except as required by law. [5] [1][3][4][5] Other Important Content - **Conference Call Details**: The call took place on December 30, 2024, at 11:00 AM ET. [6] - **Participant Roles**: David Barnard (Alliance Advisors, IR) moderated the call. [6] - **Listening Mode**: Participants were in listen-only mode during the presentation. [7] - **Recording**: The call was being recorded. [7] [6][7]

Group 1 - WiSA Technologies is conducting a special conference call to discuss its planned acquisition of CompuSystems, Inc. [5] - The call features key participants including Nate Bradley, CEO of Data Vault Holdings, Mark LoGiurato, CEO of CompuSystems, and Brett Moyer, CEO and President of WiSA Technologies [9] - The conference call is being recorded and will include a Q&A session after the presentation [5][8] Group 2 - Forward-looking statements will be made during the call, which are subject to various risks and uncertainties [8] - The company emphasizes the importance of considering these statements alongside cautionary notes and risk factors in their SEC filings [8]

Core Viewpoint - WiSA's acquisition of CompuSystem is aimed at enhancing its growth strategy by integrating advanced technology and event management capabilities, which is expected to drive new revenue opportunities and improve financial performance [2][8][11]. Group 1: Acquisition Details - WiSA has entered into a definitive agreement to acquire CompuSystem for an undisclosed amount, which is part of a broader strategy that includes the acquisition of Datavault's intellectual property and technology assets [8]. - The integration of Datavault's ADIO platform into CompuSystem's M3 Expo Wallet App is set to begin in January 2025, enhancing user experiences and monetization opportunities through Web 3.0 assets [10][11]. Group 2: Financial Implications - The acquisition is projected to significantly contribute to WiSA's revenues and EBITDA in upcoming quarters, potentially leading to an upward movement in stock price [2]. - WiSA's stock has experienced a decline of 86.8% over the past year, contrasting with the industry's growth of 26.1%, indicating a need for improved financial performance [3]. Group 3: Company Background - CompuSystem is recognized as a premier provider of registration, data analytics, and lead management services for live events, focusing on innovation and exceptional customer service [9]. - The combination of CompuSystem's event management expertise with WiSA's advanced technologies is expected to unlock significant new opportunities, particularly in monetizing event data [11].

Core Insights - WiSA Technologies, Inc. has received stockholder approval for the acquisition of Datavault intellectual property and IT assets from Data Vault Holdings Inc., valued between $266 million and $501 million [1] - The acquisition will lead to a rebranding of WiSA Technologies as Datavault Inc., focusing on data technology and licensing, particularly in blockchain data and AI Web 3.0 assets [2][11] - The transaction is expected to be completed around December 31, 2024, subject to customary conditions [9] Company Developments - WiSA will issue 40 million shares of restricted common stock and a $10 million unsecured promissory note, with a 3% royalty on future revenues from Datavault and ADIO product lines [1] - Post-acquisition, Datavault will provide services in Data Sciences and Acoustic Sciences, targeting industries such as biotech, energy, education, fintech, real estate, and healthcare [10] - The integration of WiSA E software onto the Amlogic S905X4 application processor aims to enhance wireless audio connectivity for Android hybrid OTT/IP set-top boxes and high-end media applications [4] Market Position - WiSA Technologies currently holds a Zacks Rank 2 (Buy), with shares declining 21.7% over the past six months compared to a 1.9% decline in the industry [5] - The acquisition positions the rebranded company to tap into high-growth markets, including AI, digital ownership, and advanced analytics [11]

Financial Data and Key Metrics Changes - WiSA Technologies reported Q3 2024 revenue of $1.2 million, representing a 240% increase compared to the previous period [8] - Gross margins improved significantly, driven by a shift to direct-to-consumer sales and a reduction in inventory by 17% [8] - The company ended the quarter with $3.9 million in cash [8] Business Line Data and Key Metrics Changes - The revenue increase was primarily attributed to Gen-1 WiSA HT sales, with some contribution from WiSA E [34][35] - WiSA E-related revenue is expected to see a significant uptick in Q4 compared to Q3, although no specific guidance for 2025 was provided [36] Market Data and Key Metrics Changes - WiSA Technologies is entering new markets with the Data Vault Holdings acquisition, focusing on high-growth sectors such as blockchain and artificial intelligence [16] - The company has filed for a preliminary proxy for the annual shareholders meeting and the acquisition, indicating progress in regulatory compliance [11] Company Strategy and Development Direction - The acquisition of Data Vault Holdings for $200 million in stock and a promissory note is a strategic move to enhance WiSA's intellectual property portfolio [10] - The company plans to rebrand as Datavault post-acquisition, with a focus on monetizing its combined IP assets [11][12] - WiSA is developing new products and markets for Data Vault's IP, including ultrasonic technology for data delivery and holographic experiences [17][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for revenue growth as new products are launched and markets are entered [54] - The focus on high-margin licensing models and partnerships with large brands is expected to drive future revenue [31][32] Other Important Information - The company has a total of 67 patents, with plans to reach 100 by mid-next year, indicating a strong focus on innovation and intellectual property development [30] - WiSA Technologies is preparing for a significant presence at CES in January, showcasing both WiSA and Data Vault technologies [51] Q&A Session Summary Question: Was the Q3 revenue solely driven by Gen-1 WiSA HT sales? - The revenue included contributions from both Gen-1 WiSA HT and some from WiSA E [35] Question: What are the expectations for WiSA E in Q4 and 2025? - WiSA E-related revenue is expected to significantly increase in Q4, with further growth anticipated in 2025 [36] Question: What are the near-term monetization drivers for Data Vault? - Key monetization drivers include ADIO in sports entertainment venues and the use of holograms for scientific data visualization [39][41] Question: How will Data Vault monetize its services? - Monetization will involve partnerships on both the buy and sell sides, with a 70-30 revenue split favoring clients [47] Question: Will there be an Investor Day after the acquisition? - An Investor Day is anticipated around CES in January, where the company will formalize its message post-acquisition [50][51]

| --- | --- | --- | --- | --- | --- | --- | |--------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | Third Quarter 2024 and | | | | | | | | Transaction Update November 15, 2024 | | | | | | | Forward Looking Statements This presentation of WiSA Technologies, Inc. (NASDAQ: WISA) (the "Company", "us", "our" or "WiSA") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities ...

Financial Performance - WiSA Technologies, Inc. announced preliminary revenue estimates for the quarter ended September 30, 2024[3] - The press release detailing financial information was issued on October 16, 2024[3] Company Information - The company is listed on The Nasdaq Capital Market under the trading symbol WISA[2]

Financial Performance - Net revenue for the three months ended September 30, 2024, was $1,172 million, a 52.4% increase compared to $769 million for the same period in 2023[9]. - Gross profit improved to $226 million for the three months ended September 30, 2024, compared to a gross deficit of $1,669 million in the same quarter of 2023[9]. - The net loss for the three months ended September 30, 2024, was $5,092 million, a decrease from a net loss of $6,111 million in the same quarter of 2023, indicating a 16.7% improvement[9]. - Net revenue for the nine months ended September 30, 2024, was $1,772 million, a 6.6% increase from $1,663 million for the same period in 2023[45]. - The company reported a net income of $2,707,000 for the quarter ending June 30, 2024, but a net loss of $5,092,000 for the quarter ending September 30, 2024[11]. - Net loss for the nine months ended September 30, 2024, was $45,050,000, compared to a net loss of $12,358,000 for the same period in 2023, representing a significant increase in losses[15]. Assets and Equity - Total assets increased to $8,017 million as of September 30, 2024, up from $4,823 million at December 31, 2023, representing a 66.1% growth[5]. - The company reported a total stockholders' equity of $4,295 million as of September 30, 2024, compared to a deficit of $5,157 million at the end of 2023[7]. - As of September 30, 2024, total stockholders' equity is $4,295,000, with an accumulated deficit of $292,092,000[11]. - Cash and cash equivalents increased to $3,921 million as of September 30, 2024, compared to $411 million at December 31, 2023, marking a substantial increase of 855.0%[5]. Expenses - Operating expenses totaled $5,469 million for the three months ended September 30, 2024, an increase of 17.1% from $4,670 million in the prior year[9]. - Research and development expenses rose to $2,225 million for the three months ended September 30, 2024, compared to $1,838 million in the same period of 2023, reflecting a 21.1% increase[9]. - Advertising costs for the three months ended September 30, 2024, were $201,000, a decrease of 15.5% from $238,000 in the same period of 2023[52]. - Cash flows used in operating activities for the nine months ended September 30, 2024, totaled $13,276,000, compared to $12,101,000 for the same period in 2023[15]. Revenue Sources - Revenue from Consumer Audio Products for the three months ended September 30, 2024, was $188,000, a decrease of 63.2% from $511,000 in the same period of 2023[45]. - Revenue from Components for the three months ended September 30, 2024, was $984,000, an increase of 281.0% compared to $258,000 for the same period in 2023[45]. - One customer accounted for 56% of net revenue for the three months ended September 30, 2024, indicating reliance on key customers for revenue generation[28]. Stock and Financing Activities - The company executed a 1-for-150 reverse stock split on April 4, 2024, which was effective on April 12, 2024, impacting the share structure[21]. - The company raised approximately $9.987 million from a public offering, with gross proceeds allocated to common stock and warrants[134]. - The Company raised approximately $2.6 million in May 2024 from the issuance of 785,000 shares at $3.31 per share[140]. - The company issued 1,442,518 common shares in connection with offering costs, contributing an additional $4,210,000 to paid-in capital[11]. Risks and Challenges - The company has incurred recurring losses from operations since inception, indicating ongoing financial challenges[197]. - The company expects operating losses to continue due to additional costs related to research and development and plans to expand its product portfolio[66]. - The company relies on sole-source suppliers for critical components, which poses risks related to supply chain disruptions[30]. - The company is subject to risks and uncertainties associated with being an emerging business, including the ability to maintain its Nasdaq listing and manage operational costs[194]. Accounting and Compliance - The company is currently evaluating the impact of recently issued accounting standards on its financial statements, including ASU 2023-09 and ASU 2023-07[63][64]. - The effective tax rate for the three and nine months ended September 30, 2024 was 0.0%[173]. - The Company has a full valuation allowance on its deferred tax assets as of September 30, 2024[175].