Revenue and Profitability - Revenue for the three months ended March 31, 2025, was $629,000, representing a 146% increase from $255,000 in the same period of 2024[12] - For the three months ended March 31, 2025, total net revenue was $629,000, a 147.1% increase from $255,000 in the same period of 2024[56] - Revenue from Components was $492,000, significantly up from $159,000 in the prior year, while Consumer Audio Products revenue increased to $137,000 from $96,000[56] - Gross profit for Q1 2025 was $69,000, compared to a gross deficit of $83,000 in Q1 2024[13] - The cost of net revenue for the same period was $560,000, compared to $338,000 in 2024, resulting in a gross loss of $9,563,000 for Q1 2025, compared to a net income of $2,707,000 in Q1 2024[170] Expenses and Losses - Total operating expenses increased to $9,500,000 in Q1 2025, up 133% from $4,075,000 in Q1 2024[13] - The net loss attributable to common stockholders for Q1 2025 was $9,563,000, compared to a net loss of $3,135,000 in Q1 2024[13] - Net cash used in operating activities was $6,024,000 for Q1 2025, an increase from $3,540,000 in Q1 2024, indicating higher cash outflows[21] - The company incurred salaries, benefits, and stock-based compensation expenses of $3,558,000 for Q1 2025, up from $2,284,000 in Q1 2024, indicating a 56% increase[170] - Research and development expenses increased to $2,361,000 in Q1 2025, up $646,000 from $1,715,000 in Q1 2024, primarily due to increased headcount and related costs[204] - Sales and marketing expenses rose to $1,495,000 in Q1 2025, an increase of $566,000 from $929,000 in Q1 2024, mainly due to higher salaries and consulting expenses[205] - General and administrative expenses surged to $5,644,000 in Q1 2025, an increase of $4,213,000 from $1,431,000 in Q1 2024, largely due to increased amortization and headcount-related costs[206] Cash and Liquidity - Cash and cash equivalents decreased to $171,000 as of March 31, 2025, down from $3,330,000 as of December 31, 2024[9] - The company had cash and cash equivalents of $171,000 at the end of Q1 2025, down from $2,763,000 at the end of Q1 2024, reflecting a decrease in liquidity[21] - Total current assets decreased to $2,693,000 as of March 31, 2025, from $6,439,000 as of December 31, 2024[9] Compliance and Regulatory Issues - The company has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, with a compliance period until November 3, 2025, to regain compliance[27] - The company has been granted a 180-day grace period to regain compliance with the minimum bid price requirement, which is critical for maintaining its Nasdaq listing[28] Stock and Equity - The company issued 5,986,893 common shares as stock-based compensation during the three months ended March 31, 2025[16] - The weighted average number of common shares used in computing net loss per common share was 53,681,828 for Q1 2025[13] - The company executed a 1-for-150 reverse stock split in April 2024, which has been retroactively adjusted in the financial statements[30] - The company issued common stock purchase warrants in connection with the February 2024 Public Offering, with a fair value of $6.308 million allocated to the warrants liability[126] Liabilities and Debt - Total liabilities decreased to $13,987,000 as of March 31, 2025, from $14,899,000 as of December 31, 2024[9] - The company issued promissory notes totaling $1,000,000 on January 19, 2024, with gross proceeds of $600,000 received before fees and expenses[97] - The DV Convertible Note was issued with a principal amount of $10,000,000, maturing on December 31, 2027, and carries an interest rate of 5.12% per annum[102] - As of March 31, 2025, the carrying value of the DV Convertible Note was $9,582,000 after a partial repayment of $406,000[108] Inventory and Assets - Total inventories decreased from $1.618 million on December 31, 2024, to $1.342 million on March 31, 2025[87] - Property and equipment, net increased from $58,000 on December 31, 2024, to $98,000 on March 31, 2025[87] - The company has made a deposit of $2 million related to a pending acquisition of CompuSystems Inc, recorded as "deposit on business combination" as of March 31, 2025[95] Future Outlook and Risks - The Company expects operating losses to continue due to additional costs related to research and development, plans to expand its product portfolio, and increase market share[78] - The Company will need to raise additional funds in the next 12 months through selling equity or incurring debt, raising substantial doubt about its ability to continue as a going concern[79] - The company has incurred recurring losses since inception and is subject to risks associated with being an emerging business[201]

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]

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]

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]

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]