PART I: FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) WiSA Technologies, Inc. reported a net loss of **$8.0 million** on **$1.5 million** revenue for the six months ended June 30, 2022, with cash decreasing to **$4.8 million** and a going concern uncertainty [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$12.2 million** by June 30, 2022, driven by a reduction in cash, while stockholders' equity declined to **$9.4 million** Balance Sheet Highlights (Thousands of USD) | Balance Sheet Highlights (Thousands of USD) | June 30, 2022 (Thousands of USD) | December 31, 2021 (Thousands of USD) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $4,762 | $13,108 | | Inventories | $6,248 | $4,780 | | Total current assets | $11,780 | $19,188 | | Total assets | $12,205 | $19,391 | | **Liabilities & Equity** | | | | Total current liabilities | $2,702 | $2,965 | | Total liabilities | $2,821 | $3,014 | | Total stockholders' equity | $9,384 | $16,377 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2022 revenue decreased **40%** to **$0.95 million**, with net loss widening to **$4.1 million**, driven by lower revenue and increased operating expenses Statement of Operations (Thousands of USD) | Statement of Operations (Thousands of USD) | Three Months Ended June 30, 2022 (Thousands of USD) | Three Months Ended June 30, 2021 (Thousands of USD) | Six Months Ended June 30, 2022 (Thousands of USD) | Six Months Ended June 30, 2021 (Thousands of USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $946 | $1,581 | $1,512 | $2,734 | | Gross profit | $188 | $459 | $250 | $754 | | Loss from operations | $(4,103) | $(2,809) | $(8,004) | $(5,529) | | Net loss | $(4,108) | $(3,398) | $(8,012) | $(6,690) | | Net loss per share | $(0.27) | $(0.42) | $(0.54) | $(0.76) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$8.3 million** for the six months ended June 30, 2022, reducing cash balance to **$4.8 million** Cash Flow Summary (Thousands of USD) | Cash Flow Summary (Thousands of USD) | Six Months Ended June 30, 2022 (Thousands of USD) | Six Months Ended June 30, 2021 (Thousands of USD) | | :--- | :--- | :--- | | Net cash used in operating activities | $(8,307) | $(5,328) | | Net cash used in investing activities | $(27) | $(36) | | Net cash (used in) provided by financing activities | $(12) | $8,242 | | Net (decrease) increase in cash | $(8,346) | $2,878 | | Cash and cash equivalents at end of period | $4,762 | $10,293 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue recognition, a **going concern** uncertainty, NASDAQ non-compliance, and a subsequent **$3.6 million** convertible note private placement - The company received a notification from Nasdaq on June 23, 2022, for non-compliance with the minimum bid price requirement, as its stock closed below **$1.00** for 30 consecutive business days, with a deadline of **December 20, 2022**, to regain compliance[20](index=20&type=chunk)[21](index=21&type=chunk) - There is **substantial doubt** about the company's ability to continue as a **going concern** due to recurring net losses and negative cash flow from operations, with management planning to raise additional funds[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) Revenue by Product (Thousands of USD) | Revenue by Product (Thousands of USD) | Three Months Ended June 30, 2022 (Thousands of USD) | Three Months Ended June 30, 2021 (Thousands of USD) | Six Months Ended June 30, 2022 (Thousands of USD) | Six Months Ended June 30, 2021 (Thousands of USD) | | :--- | :--- | :--- | :--- | :--- | | Components | $772 | $1,327 | $1,073 | $2,317 | | Consumer Audio Products | $174 | $254 | $439 | $417 | | **Total** | **$946** | **$1,581** | **$1,512** | **$2,734** | - On August 15, 2022, the company entered into an agreement to issue a senior secured convertible note of **$3.6 million** and warrants for gross proceeds of **$3.0 million** from an institutional investor[116](index=116&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2022 revenue declined **40%** due to supply chain issues, gross margin fell to **19.9%**, operating expenses increased, and cash significantly weakened - Revenue for Q2 2022 decreased by **40%** to **$946,000** from **$1,581,000** in Q2 2021, primarily due to a **$555,000** decrease in Component revenue from customer-side supply chain disruptions[129](index=129&type=chunk) - Gross margin for Q2 2022 fell to **19.9%** from **29.0%** in Q2 2021, mainly due to reduced sales volumes against fixed manufacturing costs[131](index=131&type=chunk) Operating Expense Changes (Q2 2022 vs Q2 2021, Thousands of USD) | Operating Expense Changes (Q2 2022 vs Q2 2021, Thousands of USD) | Q2 2022 (Thousands of USD) | Q2 2021 (Thousands of USD) | Change (Thousands of USD) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | $1,883 | $1,305 | +$578 | Increased salary, consulting, legal, and recruiting expenses | | Sales and marketing | $1,326 | $975 | +$351 | Increased salary, stock compensation, consulting, and advertising | | General and administrative | $1,082 | $988 | +$94 | Increased stock compensation and board fees | - The company's cash and cash equivalents dropped to **$4.8 million** as of June 30, 2022, from **$13.1 million** at year-end 2021, with management anticipating the need to raise additional capital[143](index=143&type=chunk)[145](index=145&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exempt from providing market risk disclosures as it qualifies as a **smaller reporting company** - The company is **not required** to provide quantitative and qualitative disclosures about market risk because it qualifies as a **smaller reporting company**[146](index=146&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were **effective** as of June 30, 2022, with no material changes to internal controls - Management concluded that as of June 30, 2022, the company's disclosure controls and procedures were **effective** in ensuring timely information disclosure[147](index=147&type=chunk) - **No changes** in the company's internal control over financial reporting occurred during Q2 2022 that materially affected, or are reasonably likely to materially affect, internal controls[148](index=148&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is **not involved** in any legal proceedings expected to materially adversely affect its business or financial condition - The company is **not party** to any pending legal proceedings that are expected to have a **material adverse effect** on its financial condition or business operations[150](index=150&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) Sales declines in H1 2022 were due to **supply chain disruptions**, and any further delays could materially impact financial results - The company's sales have **declined** in H1 2022 due to **supply chain disruptions** experienced by industry partners and customers, causing delays throughout the consumer electronics industry[152](index=152&type=chunk) - A **material delay** in product introduction or delivery, or limited component allocations, could lead to **reduced sales** and a **material adverse impact** on the company's financial results[152](index=152&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - No unregistered sales of equity securities were reported[154](index=154&type=chunk) [Item 3. Defaults Upon Senior Securities](index=30&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - No defaults upon senior securities were reported[155](index=155&type=chunk) [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This disclosure item is not applicable to the company[156](index=156&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No other material information is reported for the period - No other material information was reported[157](index=157&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) Exhibits filed with Form 10-Q include **CEO and CFO certifications** and **Interactive Data Files** - Exhibits filed include **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and **Interactive Data Files (XBRL)**[158](index=158&type=chunk)

WiSA Technologies, Inc. (NASDAQ:WISA) Q2 2022 Results Conference Call August 15, 2022 12:00 PM ET Company Participants David Barnard - Investor Relations Brett Moyer - President and Chief Executive Officer George Oliva - Chief Financial Officer Conference Call Participants Jack Vander - Maxim Group LLC Kevin Dede - HC Wainwright Edward Woo - Ascendiant Capital Markets David Barnard Welcome to the WiSA Technologies’s Second Quarter Financial Results Conference Call. At this time, all participants are in a li ...

WiSA Technologies, Inc. (NASDAQ:WISA) Q1 2022 Earnings Conference Call May 11, 2022 11:00 AM ET Company Participants David Barnard - LHA, IR Brett Moyer - Chairman, President & CEO George Oliva - CFO Conference Call Participants Jack Vander Aarde - Maxim Group Kevin Dede - H.C. Wainwright Ed Woo - Ascendiant Capital Operator …all participants are in a listen-only mode. A brief Q&A session will follow the formal presentation. As a reminder, this conference is being recorded. With us today are Brett Moyer, CE ...

NASDAQ: WISA High-quality Wi-Fi Audio Delivering Immersive Sound WiSA Technologies, Inc. Q1 2022 Investor Call May 11, 2022 Forward Looking Statements This presentation of WiSA Technologies Inc., formerly Summit Wireless Technologies, Inc. (NASDAQ: WISA) (the "Company" or "WiSA") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance ...

[PART I: FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial information, including statements, management's discussion, and controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents WiSA Technologies' unaudited condensed consolidated financial statements and comprehensive notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, outlining assets, liabilities, and equity at specific dates | Assets/Liabilities/Equity | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :------------------------ | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $9,061 | $13,108 | | Total current assets | $16,512 | $19,188 | | Total assets | $16,972 | $19,391 | | Total current liabilities | $3,827 | $2,965 | | Total liabilities | $3,986 | $3,014 | | Total stockholders' equity| $12,986 | $16,377 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's financial performance, including revenue, expenses, and net loss for specific periods | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Revenue, net | $566 | $1,153 | | Cost of revenue | $504 | $858 | | Gross profit | $62 | $295 | | Total operating expenses | $3,963 | $3,015 | | Loss from operations | $(3,901) | $(2,720) | | Net loss | $(3,904) | $(3,292) | | Net loss per common share | $(0.26) | $(0.33) | [Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Convertible%20Preferred%20Stock%20and%20Stockholders%27%20Equity%20%28Deficit%29) This section outlines changes in the company's equity, including common shares, paid-in capital, and accumulated deficit | Item | Balance as of Dec 31, 2021 (in thousands) | Balance as of Mar 31, 2022 (in thousands) | | :---------------------------------- | :---------------------------------------- | :---------------------------------------- | | Common Shares Outstanding | 15,819,059 | 16,883,464 | | Additional Paid-in Capital | $228,578 | $229,058 |\ | Accumulated Deficit | $(212,203) | $(216,074) |\ | Total Stockholders' Equity (Deficit)| $16,377 | $12,986 | - The company recorded a **net loss of $3.904 million** for the three months ended March 31, 2022, increasing the accumulated deficit[15](index=15&type=chunk) - **Stock-based compensation** for the three months ended March 31, 2022, amounted to **$480 thousand**, increasing additional paid-in capital[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash flows from operating, investing, and financing activities over specific periods | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :-------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net cash used in operating activities | $(4,034) | $(2,771) | | Net cash used in investing activities | $(7) | $(26) | | Net cash (used in) provided by financing activities | $(6) | $5,089 | | Net (decrease) increase in cash and cash equivalents | $(4,047) | $2,292 | | Cash and cash equivalents as of end of period | $9,061 | $9,707 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements [1. Business and Summary of Significant Accounting Policies](index=7&type=section&id=1.%20Business%20and%20Summary%20of%20Significant%20Accounting%20Policies) This section describes the company's core business, operational focus, and key accounting principles - WiSA Technologies, Inc. focuses on **immersive wireless sound technology** for intelligent devices and home entertainment, selling module components and audio products[20](index=20&type=chunk) - The company relies on **sole-source suppliers** for key components and single contractors in China and Japan for assembly, testing, and semiconductor chips[28](index=28&type=chunk) Net Revenue by Product Category | (in thousands) | For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | | :---------------------- | :---------------------------------------- | :---------------------------------------- | | Components | $301 | $990 | | Consumer Audio Products | $265 | $163 | | Total | $566 | $1,153 | Impact of ASC 842 Adoption on Balance Sheet (January 1, 2022) | Item | Balance as of Dec 31, 2021 (in thousands) | Adjustments Due to ASC 842 (in thousands) | Balance as of Jan 1, 2022 (in thousands) | | :---------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------------------------- | | Operating lease right-of-use assets | $— | $212 | $212 | | Property and equipment, net | $162 | $90 | $252 | | Operating lease liabilities, current| $— | $148 | $148 | | Operating lease liabilities, non-current| $— | $179 | $179 | | Accumulated deficit | $(212,203) | $33 | $(212,170) | [2. Going Concern](index=16&type=section&id=2.%20Going%20Concern) This section addresses the company's ability to continue operations, highlighting financial challenges and funding needs - The Company has incurred **net operating losses since inception** and reported **net cash used in operations of $4.0 million** for the three months ended March 31, 2022, with **cash and cash equivalents of $9.1 million**[59](index=59&type=chunk) - Management expects **operating losses to continue** due to R&D, product expansion, and market share increase, necessitating additional funds through equity or debt[59](index=59&type=chunk)[60](index=60&type=chunk) - These factors raise **substantial doubt about the Company's ability to continue as a going concern** for the next twelve months, with no assurance of future financing on acceptable terms[60](index=60&type=chunk)[61](index=61&type=chunk) [3. Balance Sheet Components](index=16&type=section&id=3.%20Balance%20Sheet%20Components) This section provides detailed breakdowns of key balance sheet items: inventories, property, and accrued liabilities Inventories (in thousands) | Category | March 31, 2022 | December 31, 2021 | | :-------------- | :------------- | :---------------- | | Raw materials | $1,915 | $2,057 | | Work in progress| $1,186 | $1,403 | | Finished goods | $3,126 | $1,320 | | Total inventories | $6,227 | $4,780 | Property and equipment, net (in thousands) | Category | March 31, 2022 | December 31, 2021 | | :---------------------------- | :------------- | :---------------- | | Machinery and equipment | $963 | $965 | | Leasehold improvements | $127 | $40 | | Total property and equipment, net | $231 | $162 | Accrued liabilities (in thousands) | Category | March 31, 2022 | December 31, 2021 | | :-------------------- | :------------- | :---------------- | | Accrued vacation | $420 | $385 | | Accrued rebate | $346 | $356 | | Customer advances | $265 | $— | | Total accrued liabilities | $1,727 | $1,416 | [4. Borrowings](index=17&type=section&id=4.%20Borrowings) This section details the company's debt instruments and related financial events, including loan forgiveness - The Company received **full loan forgiveness for its $847 thousand PPP Loan**, plus interest, totaling **$859 thousand**, recognized as a gain upon debt extingu

Summit Wireless Technologies, Inc. (NASDAQ:WISA) Q4 2021 Earnings Conference Call March 11, 2022 11:00 AM ET Company Participants David Barnard - LHA, IR Brett Moyer - Chairman, President & CEO George Oliva - CFO Conference Call Participants Jack Vander Aarde - Maxim Group Marty Elbaum - Horizon Networks David Lavigne - Trickle Research Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you na ...

Financial Performance & Growth - Q4 2021 revenue reached $2.0 million, a 93% increase compared to Q4 2020[41] - The company anticipates a 30-50% year-over-year revenue growth for the full year 2022[41,44] - Gross margin in Q4 2021 was 30%, up from 24% in Q4 2020[41] - The company projects a 28-30% gross margin target for 2022[41] Market & Technology Expansion - WiSA is expanding its technology from the audiophile market to the broader immersive audio consumer market, targeting a Total Addressable Market (TAM) of over 1 billion units[44] - The company is moving towards lower costs and ubiquity with low-cost IoT chip modules and embedded software/IP[10] - WiSA's new branding strategy aims to increase consumer awareness of interoperable products[9] Product & Application Development - The SoundSend app will be expanded from Android TVs to Web OS (LG) and Tizen (Samsung) in 2022[29] - WiSA is launching new feature WiSADS in March 2022, with lower price < $15 for wireless modules[32,33] Market Opportunity - The projected soundbar Serviceable Available Market (SAM) for 2022 is 52.1 million units[34] - WiSA systems are projected to account for 2.1 million units of the soundbar market in 2022, representing a 5% market share[35]

PART I [Business](index=4&type=section&id=Item%201.%20Business) The company develops and sells wireless audio technology for home entertainment, centered on its semiconductor chips, modules, and the promotion of the WiSA interoperability standard - The company's primary business is selling proprietary wireless modules and custom semiconductor chips for immersive, multi-channel audio systems[17](index=17&type=chunk)[19](index=19&type=chunk) - A major strategic focus is the development of a licensable software solution that ports their technology onto standard Wi-Fi IoT modules, aiming for **lower cost and broader market adoption**[19](index=19&type=chunk)[23](index=23&type=chunk)[52](index=52&type=chunk) - The company founded and operates the WiSA Association to promote an interoperability standard for wireless audio products, which currently requires members to use Summit's modules for certification[18](index=18&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk) - Key customers include major consumer electronics brands such as **Bang & Olufsen, Harman International (a division of Samsung), LG Electronics, and Skyworth**[47](index=47&type=chunk)[59](index=59&type=chunk) - As of December 31, 2021, the company held **12 issued and 4 pending U.S. patents** covering its technology[63](index=63&type=chunk) - As of March 9, 2022, the company had 46 employees, with **28 dedicated to research and development**[53](index=53&type=chunk)[71](index=71&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Summit Wireless Technologies is not required to provide extensive risk factor disclosures - The company is not required to include disclosure under this item as it qualifies as a **smaller reporting company**[72](index=72&type=chunk) [Unresolved Staff Comments](index=18&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - This item is not applicable as there are **no unresolved staff comments**[73](index=73&type=chunk) [Properties](index=18&type=section&id=Item%202.%20Properties) The company leases all its facilities, including its principal executive office in Oregon and smaller offices in California - The principal executive office is a leased 10,500 sq. ft. facility in Beaverton, Oregon, with a lease expiring in January 2024[74](index=74&type=chunk) - The company also maintains smaller, month-to-month office leases in San Jose and Campbell, California[74](index=74&type=chunk) [Legal Proceedings](index=18&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any material litigation - As of the report date, the company is **not involved in any material legal proceedings**[76](index=76&type=chunk) [Mine Safety Disclosures](index=18&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's business operations - This item is **not applicable** to the company[78](index=78&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=20&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "WISA", and the company has not paid and does not intend to pay cash dividends - Common stock is traded on the Nasdaq Capital Market under the ticker **"WISA"**[81](index=81&type=chunk) - The company has **never paid cash dividends** and does not anticipate doing so in the foreseeable future, retaining earnings for business development[82](index=82&type=chunk) - In December 2021, the company granted warrants to purchase a total of 40,000 shares of common stock to two service providers at an exercise price of $1.52 per share[84](index=84&type=chunk)[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue grew 172% in FY2021, but recurring net losses and negative operating cash flow resulted in a "going concern" warning Key Financial Metrics (FY 2021 vs. FY 2020) | Financial Metric | FY 2021 | FY 2020 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $6,541,000 | $2,404,000 | +172% | | **Gross Profit** | $1,864,000 | $427,000 | +336.5% | | **Gross Margin** | 28.5% | 17.8% | +10.7 pts | | **R&D Expense** | $5,236,000 | $4,572,000 | +14.5% | | **Sales & Marketing Expense** | $4,123,000 | $2,974,000 | +38.6% | | **G&A Expense** | $4,016,000 | $4,168,000 | -3.6% | | **Net Loss** | ($11,820,000) | ($12,705,000) | N/A | - The company's financial statements include a **"going concern" warning**, indicating substantial doubt about its ability to continue operations due to recurring net operating losses and the need to raise additional funds[125](index=125&type=chunk)[128](index=128&type=chunk)[353](index=353&type=chunk) - Cash and cash equivalents increased to **$13.1 million** at year-end 2021 from $7.4 million at year-end 2020, primarily due to financing activities[122](index=122&type=chunk) - Key financing activities in 2021 included raising approximately **$9.0 million in a registered direct offering** in July and approximately **$8.3 million from the exercise of warrants**[99](index=99&type=chunk)[124](index=124&type=chunk) - The company received forgiveness for its **$859,000 Paycheck Protection Program (PPP) loan** in the third quarter of 2021, which was recorded as a gain[119](index=119&type=chunk)[372](index=372&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Summit Wireless is not required to provide disclosures for this item - The company is exempt from this disclosure requirement due to its status as a **smaller reporting company**[130](index=130&type=chunk) [Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section references the company's consolidated financial statements, notes, and auditor's report, which begin on page F-1 - This item directs readers to the full consolidated financial statements and the report of the independent registered public accounting firm, which begin on page F-1[131](index=131&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=32&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes in or disagreements with its accountants on accounting or financial disclosure matters - There were **no disagreements with accountants** on accounting and financial disclosure[132](index=132&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective and a previously reported material weakness was remediated in Q4 2021 - Management concluded that the company's internal control over financial reporting was **effective as of December 31, 2021**[138](index=138&type=chunk) - During Q4 2021, the company **remediated a previously identified material weakness** concerning insufficient written policies for accounting and financial reporting[139](index=139&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=35&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section details the company's leadership, board structure, and corporate governance policies - The key executive officers are **Brett Moyer (President, CEO, Chairman), George Oliva (CFO), and Gary Williams (CAO)**[144](index=144&type=chunk) - The Board of Directors consists of eight members, with a majority (**five members**) determined to be independent under Nasdaq rules[164](index=164&type=chunk)[167](index=167&type=chunk) - The Board maintains an Audit Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee, each with a formal charter[174](index=174&type=chunk) [Executive Compensation](index=49&type=section&id=Item%2011.%20Executive%20Compensation) This section details compensation for Named Executive Officers (NEOs), which primarily consists of salary and stock awards Summary Compensation Table (2021 vs. 2020) | Name and Principal Position | Year | Salary ($) | Stock Awards ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | **Brett Moyer** | 2021 | 385,000 | 552,500 | 942,575 | | President and CEO | 2020 | 302,792 | 362,485 | 673,339 | | **George Oliva** | 2021 | 275,000 | 66,300 | 343,452 | | CFO, Secretary | 2020 | 230,765 | 168,419 | 408,267 | | **Gary Williams** | 2021 | 249,995 | 44,200 | 295,212 | | CAO, VP of Finance | 2020 | 230,766 | 81,670 | 316,809 | - The company maintains a 2018 Long-Term Stock Incentive Plan (LTIP) and a 2020 Stock Incentive Plan to grant equity-based compensation to employees, directors, and consultants[214](index=214&type=chunk)[216](index=216&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=56&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section discloses that Lind Global Macro Fund, LP is the only beneficial owner of more than 5% of common stock - **Lind Global Macro Fund, LP** is the only stockholder beneficially owning more than 5% of the common stock, with a reported ownership of **9.99%**[231](index=231&type=chunk)[233](index=233&type=chunk) - All directors and executive officers as a group beneficially owned 1,033,085 shares, representing **6.11% of the outstanding common stock** as of March 9, 2022[231](index=231&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=64&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company discloses related party transactions with entities connected to a former and a current director, overseen by the Audit Committee - The company had transactions with Alexander Capital, L.P., an investment bank where former director Jonathan Gazdak is a Managing Director, including underwriting and a settlement agreement in 2020[244](index=244&type=chunk)[246](index=246&type=chunk) - Director Helge Kristensen is the vice president of Hansong Technology; in 2021, Hansong purchased approximately **$497,000** in modules from the company, and the company purchased approximately **$1,645,000** in speaker products from Hansong[247](index=247&type=chunk)[448](index=448&type=chunk)[449](index=449&type=chunk) - The Audit Committee is responsible for reviewing and approving all related party transactions to ensure they are on terms comparable to arm's-length dealings[252](index=252&type=chunk)[256](index=256&type=chunk) [Principal Accountant Fees and Services](index=68&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) This section details fees billed by the independent accounting firm BPM LLP, which are pre-approved by the Audit Committee Principal Accountant Fees | Fee Category | 2021 | 2020 | | :--- | :--- | :--- | | Audit fees | $330,860 | $383,170 | | Tax fees | $23,300 | $21,400 | | All other fees | $0 | $0 | | **Total** | **$354,160** | **$404,570** | PART IV [Exhibits and Financial Statement Schedules](index=70&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K, including financial statements and material contracts - This item provides a list of the financial statements filed with the report and an index of all exhibits, including material agreements and corporate documents[261](index=261&type=chunk)[262](index=262&type=chunk) Financial Statements [Consolidated Balance Sheets](index=86&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a significant increase in total assets and stockholders' equity as of December 31, 2021, driven by a rise in cash from financing activities Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item (in thousands) | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $13,108 | $7,415 | | **Total current assets** | $19,188 | $11,116 | | **Total assets** | $19,391 | $11,299 | | **Total current liabilities** | $2,965 | $2,284 | | **Total liabilities** | $3,014 | $3,386 | | **Total stockholders' equity** | $16,377 | $7,316 | [Consolidated Statements of Operations](index=87&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a 172% revenue increase in 2021 but continued to post a significant net loss due to high operating expenses Consolidated Statement of Operations Highlights (in thousands) | Income Statement Item (in thousands) | FY 2021 | FY 2020 | | :--- | :--- | :--- | | **Revenue, net** | $6,541 | $2,404 | | **Gross profit** | $1,864 | $427 | | **Total operating expenses** | $13,375 | $11,714 | | **Loss from operations** | ($11,511) | ($11,287) | | **Net loss** | ($11,820) | ($12,705) | | **Net loss attributable to common stockholders** | ($13,046) | ($12,919) | | **Net loss per common share - basic and diluted** | ($1.05) | ($2.47) | [Consolidated Statements of Cash Flows](index=89&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company used $11.5 million in cash for operations but generated $17.3 million from financing activities, resulting in a net cash increase for the year Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Item (in thousands) | FY 2021 | FY 2020 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($11,508) | ($9,859) | | **Net cash used in investing activities** | ($99) | ($52) | | **Net cash provided by financing activities** | $17,300 | $17,028 | | **Net increase in cash and cash equivalents** | $5,693 | $7,117 | | **Cash and cash equivalents at end of period** | $13,108 | $7,415 | [Notes to Consolidated Financial Statements](index=90&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and reiterate the substantial doubt about the company's ability to continue as a going concern - Note 2 explicitly states that recurring losses from operations and cash used in operations raise **substantial doubt about the company's ability to continue as a going concern**[286](index=286&type=chunk)[353](index=353&type=chunk) - Revenue is generated from two categories: **Components ($5.5M in 2021)** and **Consumer Audio Products ($1.0M in 2021)**, recognized upon transfer of control[327](index=327&type=chunk)[331](index=331&type=chunk) - The company relies on **sole-source suppliers** for certain components and a **single contractor in China** for assembly and testing, representing a concentration risk[310](index=310&type=chunk) - As of December 31, 2021, the company had federal net operating loss carryforwards of approximately **$49.7 million** to offset future taxable income, subject to limitations[430](index=430&type=chunk)

NASDAQ: WISA The New Industry Standard for Immersive Wireless Sound Summit Wireless Q3 2021 Investor Call November 10, 2021 Forward Looking Statements This presentation of Summit Wireless Technologies, Inc. (NASDAQ: WISA) (the "Company" or "WISA") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statemen ...

Summit Wireless Technologies, Inc. (NASDAQ:WISA) Q3 2021 Earnings Conference Call November 10, 2021 11:00 AM ET Company Participants Kirsten Chapman - Lippert/Heilshorn & Associates Brett Moyer - Chairman, President & CEO George Oliva - CFO & Secretary Conference Call Participants Jack Vander Aarde - Maxim Group Kevin Dede - HCW Edward Woo - Ascendiant Capital Marty Elbaum - Horizon Networks Operator Greetings, and welcome to the Summit Wireless Technologies Third Quarter 2021 Financial Results Conference C ...