Business Context and Reporting Period
This Form 8-K is filed by Summit Wireless Technologies, Inc. (not Datavault AI Inc.) on October 22, 2019, reporting an event that occurred on October 16, 2019. The Company is an emerging growth company incorporated in Delaware, with its common stock (Ticker: WISA) listed on The Nasdaq Capital Market.
Key Financial Metrics
The filing does not provide specific financial data such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial metric disclosed is the stock price performance triggering the regulatory notice: the closing bid price of the Common Stock was below $1.00 per share for 30 consecutive business days prior to October 16, 2019.
Material Changes
The material change reported is the receipt of a written notification from Nasdaq indicating non-compliance with Listing Rule 5550(a)(2) regarding the minimum bid price requirement. Consequently, the Company has been granted a 180-calendar-day compliance period ending April 13, 2020, to regain compliance.
Outlook, Risks, and Management Commentary
- Compliance Path: To regain compliance, the closing bid price must meet or exceed $1.00 per share for at least 10 consecutive business days during the grace period.
- Contingency Plan: If the Company fails to comply by April 13, 2020, it may be eligible for a second 180-day grace period. Qualification for this extension requires meeting the market value of publicly held shares and other initial listing standards, and notifying Nasdaq of an intent to cure the deficiency, potentially via a reverse stock split.
- Risks: There is no assurance the Company will regain compliance. Failure to do so within the allotted periods will result in delisting from Nasdaq.
- Management Action: Management intends to monitor the stock price and consider available options to resolve the non-compliance.
Investor Verification Checklist
- Verify the current trading price of WISA to assess the likelihood of meeting the $1.00 threshold within the compliance window.
- Monitor for any announcements regarding a reverse stock split or other capital structure changes intended to cure the deficiency.
- Check for subsequent filings regarding the Company's progress toward the April 13, 2020 deadline.
- Confirm the Company's market value of publicly held shares to determine eligibility for a potential second grace period.