Business Context and Reporting Period
This Form 8-K is filed by Summit Wireless Technologies, Inc. (not Datavault AI Inc.) on November 21, 2019, regarding an event that occurred on November 18, 2019. The Company is an emerging growth company listed on the Nasdaq Capital Market under the symbol WISA.
Key Financial Metrics
The filing references financial data from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2019:
- Total Stockholders' Equity: Approximately $907,000.
- Nasdaq Minimum Equity Requirement: $2,500,000.
- Deficit: Approximately $1,593,000 below the required threshold.
The filing text does not provide specific values for revenue, profit, cash flow, margins, or debt.
Material Changes and Listing Status
On November 18, 2019, the Company received a written notification from Nasdaq indicating non-compliance with Listing Rule 5550(b)(1) due to insufficient stockholders' equity. This constitutes a material risk to the continued listing of the Company's common stock.
Outlook, Management Commentary, and Risks
- Compliance Plan: The Company intends to submit a plan to regain compliance to the Nasdaq Listing Qualifications staff by January 2, 2020.
- Extension Period: If the plan is accepted, the Company may receive an extension of up to 180 calendar days to evidence compliance.
- Hearing Option: If the plan is rejected, the Company may request a hearing before a Nasdaq Hearings Panel. Securities would remain listed during the hearing process.
- Delisting Risk: If compliance is not regained within the allotted period, the Company's common stock will be subject to delisting.
- Forward-Looking Statements: Management anticipates regaining compliance but explicitly states there can be no assurance that the plan will be accepted, a hearing granted, or that compliance will be achieved.
Investor Verification Checklist
- Verify the Company's current stockholders' equity status in the most recent 10-Q or 10-K filings.
- Monitor the submission and acceptance status of the compliance plan with Nasdaq by the January 2, 2020 deadline.
- Review any subsequent 8-K filings regarding the outcome of the compliance plan or hearing requests.
- Confirm the trading status of the WISA ticker on the Nasdaq Capital Market.