Financial Performance - Revenue for the year ended December 31, 2022 was $3,365,000, a decrease of $3,176,000, or 49%, compared to $6,541,000 for the year ended December 31, 2021[106]. - Gross profit for the year ended December 31, 2022 was $395,000, a decrease of $1,469,000 compared to $1,864,000 for the year ended December 31, 2021, with a gross margin of 11.7% compared to 28.5% in 2021[107]. - The decrease in Component revenue was attributed to a slow-down in consumer spending and supply chain interruptions due to COVID-19[106]. Expenses - Research and development expenses for the year ended December 31, 2022 were $7,144,000, an increase of $1,908,000 compared to $5,236,000 for the year ended December 31, 2021[108]. - Sales and marketing expenses for the year ended December 31, 2022 were $6,140,000, an increase of $2,017,000 compared to $4,123,000 for the year ended December 31, 2021[110]. - General and administrative expenses for the year ended December 31, 2022 were $5,155,000, an increase of $1,139,000 compared to $4,016,000 for the year ended December 31, 2021[111]. - Interest expense, net for the year ended December 31, 2022 was $898,000, an increase of $889,000 compared to $9,000 for the year ended December 31, 2021[112]. Cash Position - Cash and cash equivalents as of December 31, 2022 were $2,897,000, compared to $13,108,000 as of December 31, 2021[118]. - The Company reported net cash used in operations of $17.5 million for the year ended December 31, 2022[124]. - Cash and cash equivalents as of December 31, 2022, were $2.9 million[124]. Future Outlook - The Company expects to continue incurring operating losses due to increased costs related to research and development and market expansion[124]. - The Company intends to raise additional funds through equity or debt issuance within the next 12 months[125]. - There is substantial doubt about the Company's ability to continue as a going concern due to ongoing operating losses and capital requirements[126]. Financing Activities - The Company raised gross proceeds of approximately $7.6 million from a public offering of 504,000 units at an effective price of $14.00 per unit[123]. - The Company raised approximately $6.4 million in net proceeds from the public offering[123]. - As of December 31, 2022, the outstanding principal amount of the Convertible Note was $2,089,000[122]. - The Convertible Note matures on August 15, 2024, and does not bear interest[122]. - The Company has not sold any shares under the ATM Program, which was terminated in January 2023[124]. Product Development - The WiSA Wireless "Discovery" module supports up to four separate wireless audio channels and reduces the cost per wireless channel by over 50% for soundbars and entry-level home theater applications[97].
WiSA Technologies(WISA) - 2022 Q4 - Annual Report