Filing identity and reporting period
Important identity mismatch: The request names Datavault AI Inc., but the supplied 10-K is for WiSA Technologies, Inc. (Nasdaq: WISA). This summary covers the filing provided, not Datavault AI. It reports the fiscal year ended December 31, 2023, with 2022 comparatives; it does not provide standalone Q4 results.
WiSA develops and sells wireless audio modules and components and is building a software licensing business, WiSA E, for Wi-Fi-enabled devices. The filing describes the launch of WiSA E in late 2023 and a licensing program for display devices; three manufacturers had signed licenses in the first 90 days, according to the company.
Financial results and position
| Metric | 2023 | 2022 |
|---|---|---|
| Revenue | $2.083 million | $3.365 million |
| Gross profit (loss) | $(3.457) million | $0.395 million |
| Gross margin | (166%) | 12% |
| Operating expenses | $18.000 million | $18.439 million |
| Operating loss | $(21.457) million | $(18.044) million |
| Net loss | $(18.721) million | $(16.151) million |
| Net loss attributable to common stockholders | $(25.081) million | $(16.151) million |
| Net cash used in operations | $14.826 million | $17.514 million |
Revenue fell 38%, mainly from lower component sales amid weaker consumer-electronics spending. Cost of revenue included a $2.9 million inventory reserve, primarily for semiconductor chips; lower sales and product pricing also weighed on gross margin. The $6.36 million deemed dividend tied mainly to Series B preferred-stock conversions increased the loss attributable to common stockholders, but was not an operating cash outflow. A $4.51 million noncash gain from the change in fair value of warrant liabilities partly offset reported losses.
At year-end, cash and cash equivalents were $0.411 million (2022: $2.897 million); current assets were $4.083 million and current liabilities $3.637 million. Total liabilities were $9.733 million, including $5.460 million in warrant liabilities; stockholders’ deficit was $5.157 million. No convertible note payable remained at December 31, 2023. Operating cash use remained substantial despite declining year over year. The company reported no off-balance-sheet arrangements.
Material changes and developments
- R&D expense rose to $7.456 million from $7.144 million; sales and marketing fell to $5.177 million from $6.140 million; general and administrative expense increased to $5.367 million from $5.155 million.
- The company repaid its 2022 senior secured convertible note in April 2023 and a $650,000 related-party bridge loan in December 2023. Debt-extinguishment loss was $0.837 million, including a prepayment premium and write-off of debt discounts.
- Post-year-end financing included a February 2024 offering with approximately $10 million gross proceeds; approximately $6.3 million was used to repurchase Series B preferred shares and cancel related warrants. All February pre-funded warrants were exercised by the filing date. A March 2024 offering raised approximately $2.3 million gross.
- Common shares outstanding were 250,940,750 as of March 27, 2024, following substantial financing and warrant/pre-funded-warrant activity. The filing also reflects a 1-for-100 reverse split in January 2023; share and per-share comparatives were retroactively adjusted.
Outlook, risks and unusual items
Management expects operating losses to continue and stated that additional capital would be needed to fund operations. The filing and auditor report identify substantial doubt about the company’s ability to continue as a going concern for the relevant twelve-month period; management’s financing plans had not alleviated that doubt. The filing gives no specific revenue or earnings guidance.
Nasdaq had raised minimum-bid-price, low-priced-stock and stockholders’ equity compliance issues. The company appealed a delisting determination; the hearing was held March 28, 2024, and no Panel decision had been issued as of the filing. Continued Nasdaq listing was not assured. Other disclosed risks include customer concentration, reliance on sole-source suppliers and contract manufacturers in China and Japan, competition, technology adoption, and the need for further financing. The company said it had no material litigation. Management reported disclosure controls and internal control over financial reporting effective at year-end; the auditor gave an unqualified financial-statement opinion while highlighting the going-concern uncertainty.
Key facts for investors to verify
- Confirm the issuer: the supplied filing is WiSA Technologies, Inc., not Datavault AI Inc.
- Review the full audited statements and notes for the inventory reserve, warrant-liability valuation, preferred-stock terms and deemed dividend.
- Assess current cash, cash burn, funding raised and subsequent financing uses, including the preferred-stock repurchase.
- Track Nasdaq’s decision and the company’s compliance with listing requirements.
- Reconcile post-offering share counts, outstanding warrants, exercise/reset terms and potential dilution.
- Evaluate whether WiSA E licensing and customer adoption generate revenue at a scale sufficient to support the cost base.