Financial Performance - Net revenue for the three months ended June 30, 2024, was $345,000, a decrease of 18.82% from $425,000 in the same period of 2023[9]. - Gross profit for the three months ended June 30, 2024, was $11,000, compared to a gross loss of $201,000 in the same period of 2023[9]. - Net loss for the three months ended June 30, 2024, was $42,665,000, compared to a net loss of $5,326,000 in the same period of 2023, indicating a significant increase in losses[9]. - For the six months ended June 30, 2024, the net loss was $39,958 thousand, compared to a net loss of $6,247 thousand for the same period in 2023, indicating a significant increase in losses[15]. - Revenue for the six months ended June 30, 2024, was $600,000, down from $894,000 in the same period of 2023, reflecting a decline of approximately 33%[9]. - Gross deficit for the six months ended June 30, 2024, was ($72,000), an improvement from a gross deficit of ($1,454,000) for the same period in 2023, with a gross margin of (12%)[165]. Assets and Liabilities - Total assets increased to $10,632,000 as of June 30, 2024, compared to $4,823,000 as of December 31, 2023, representing a growth of 120%[5]. - Total liabilities decreased to $4,202,000 as of June 30, 2024, from $9,733,000 as of December 31, 2023, a reduction of 56.7%[6]. - Total stockholders' equity increased to $6,430,000 as of June 30, 2024, compared to a deficit of $5,157,000 as of December 31, 2023[7]. - Total current assets increased to $9,973,000 as of June 30, 2024, from $4,083,000 as of December 31, 2023, showing a growth of approximately 144%[5]. Cash Flow and Liquidity - Cash and cash equivalents rose to $6,113,000 as of June 30, 2024, compared to $411,000 as of December 31, 2023, marking a substantial increase[5]. - Cash and cash equivalents as of June 30, 2024, were $6,113,000, up from $2,007,000 as of June 30, 2023, reflecting improved liquidity[15]. - The company reported a net cash used in operating activities of $9,045 thousand for the six months ended June 30, 2024, compared to $9,126 thousand for the same period in 2023[15]. Expenses - Operating expenses for the three months ended June 30, 2024, totaled $5,416,000, an increase of 20.5% from $4,492,000 in the same period of 2023[9]. - Research and development expenses for the three months ended June 30, 2024, were $1,789,000, a slight decrease from $1,933,000 in the same period of 2023[9]. - General and administrative expenses for the three months ended June 30, 2024, were $2,762,000, an increase of $1,292,000 compared to $1,470,000 for the same period in 2023[168]. - Stock-based compensation for the six months ended June 30, 2024, was $777 thousand, down from $980 thousand in the same period in 2023[15]. Compliance and Regulatory - The company has regained compliance with Nasdaq's minimum bid price requirement and equity requirement as of April 29, 2024, and July 3, 2024, respectively[19][20]. - The company has been subject to monitoring for compliance with Nasdaq listing rules for one year following the regaining of compliance[19][20]. Capital Raising and Financing - The company issued common stock and warrants, net of offering costs, amounting to $19,980 thousand in the first half of 2024, compared to $1,927 thousand in the same period of 2023[15]. - The company will need to raise additional funds in the next 12 months, potentially through selling equity or incurring debt, to support its operations[61]. - The company raised approximately $9.987 million from the February 2024 public offering, with gross proceeds of $1.543 million from February Units and $8.444 million from February Pre-Funded Units[112]. Market and Operational Risks - The company relies on sole-source suppliers for critical components, which poses risks to meeting demand[30]. - The company’s future operating results are subject to risks including rapid technological change and competition from larger companies[29]. Stock and Warrants - The company issued additional warrants to purchase 5,602,693 shares of common stock due to a provision triggered by a reverse stock split in April 2024[172]. - As of June 30, 2024, there were 8,832,641 warrants outstanding with exercise prices between $0.015 and $3.48, and 954,827 warrants with exercise prices between $5.06 and $6.00[139]. Technology and Innovation - The company introduced its second generation technology, WiSA E, in 2023, which allows for seamless integration across platforms and devices[161]. - The company is focused on delivering immersive wireless sound technology for next-generation home entertainment systems, indicating ongoing commitment to innovation and market expansion[17].
WiSA Technologies(WISA) - 2024 Q2 - Quarterly Report