Revenue Growth - Revenue for Q3 2025 was $2.9 million, an increase of 148% from $1.2 million in Q3 2024, driven by the acquisition of CompuSystems, Inc. (CSI) [330] - Revenue for the first nine months of 2025 was $5.3 million, a 197% increase from $1.8 million in the same period of 2024, also attributed to the acquisition of CSI [331] Profitability - Gross profit for Q3 2025 was $95,000, representing 3% of sales, down from 19% in Q3 2024, due to lower-margin revenue from CSI [332] - The company recorded a net loss of $33.0 million for Q3 2025 and $79.7 million for the first nine months of 2025 [351] Expenses - Research and development expenses for Q3 2025 were $5.0 million, an increase of 127% from $2.2 million in Q3 2024, primarily due to IBM Watsonx AI subscription licenses [334] - General and administrative expenses for Q3 2025 were $7.7 million, up 235% from $2.3 million in Q3 2024, driven by higher amortization of intangible assets and increased headcount [338] - Interest expense for Q3 2025 was $0.9 million, a significant increase from $9,000 in Q3 2024, due to increased borrowings [340] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, were $1.7 million, down from $3.3 million as of December 31, 2024 [350] - Cash provided by financing activities for the first nine months of 2025 was approximately $28.1 million, compared to $17.1 million in 2024 [352] - Debt extinguishment expense for Q3 2025 was $5.8 million due to the extinguishment of convertible notes [347] - The company raised $5.5 million and $6 million from the issuance of Q3 2025 Notes in August and September 2025, respectively [353] - In April and May 2025, the company received $4.5 million and $9.2 million from the issuance of 2025 Notes [353] - A registered direct offering in February 2025 generated approximately $5.4 million in gross proceeds [353] - In February 2024, the company raised approximately $10.0 million from a public offering of 1,025,600 units, each consisting of one share of common stock and one warrant [353] - The company received approximately $2.3 million in March 2024 from the issuance of common stock and warrants [353] - The company plans to raise additional funds through equity securities and/or debt instruments in 2025 and 2026 to support operations [353] Regulatory and Reporting - There are no off-balance sheet arrangements reported by the company [354] - As a smaller reporting company, the company is not required to provide certain market risk disclosures [356]
WiSA Technologies(WISA) - 2025 Q3 - Quarterly Report