WiSA Technologies(WISA) - 2024 Q3 - Quarterly Report

Financial Performance - Net revenue for the three months ended September 30, 2024, was $1,172 million, a 52.4$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$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$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$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$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$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].