BEAVERTON, Ore. - WiSA Technologies, Inc. (NASDAQ: WISA), currently trading at $1.70 with a market capitalization of $13.21 million, has announced that its stockholders have approved the acquisition of intellectual property and technology assets from Data Vault Holdings Inc. According to InvestingPro data, the company's stock has seen a significant decline of over 90% year-to-date. The transaction, which involves the issuance of 40 million WiSA common shares and a $10 million three-year promissory note, is expected to close on or around December 31, 2024.
Upon completion, WiSA Technologies will be rebranded as Datavault Inc. and will pivot to a data technology and licensing firm, leveraging an extensive patent portfolio across various sectors including sports, entertainment, biotech, education, fintech, real estate, healthcare, and energy.
The company's new Data Sciences division will license high-performance computing software and Web 3.0 data management tools to a range of industries, while the Acoustic Sciences division will focus on licensing HD sound transmission technologies. This strategic pivot comes as InvestingPro analysis shows the company facing challenges with its current business model, reporting last twelve months revenue of $2.19 million and an EBITDA of -$19.35 million.
According to WiSA's CEO, Brett Moyer, the acquisition marks a significant transformation, positioning the company to tap into multiple growing markets. Nathaniel T. Bradley, CEO and co-founder of Data Vault Holdings, anticipates that the deal will facilitate commercial expansion and capitalize on recent customer and partnership announcements.
The Datavault platform offers a solution for managing and monetizing data in the Web 3.0 environment, including risk-free licensing of name, image, and likeness (NIL) through secure blockchain attachments. The platform generates revenue through licensing partnerships, providing analytics, high-performance computing modeling, digital ownership, tokenization, and advertising services.
In the agreement, WiSA Technologies will also pay a 3% royalty on future revenues from Datavault and ADIO product lines. Post-acquisition, Bradley will assume the role of CEO, with Moyer transitioning to CFO.
This press release statement is based on information provided by WiSA Technologies, Inc. and Data Vault Holdings Inc. It contains forward-looking statements about the anticipated benefits and timing of the asset purchase, as well as the expected future operations and market opportunities of the companies. These statements are subject to risks and uncertainties, and actual results may differ materially from those projected. InvestingPro subscribers can access 13 additional key insights about WISA's financial health, including detailed analysis of its liquidity position, with a current ratio of 2.26, and comprehensive valuation metrics. Get access to the full Pro Research Report for deeper insights into WISA's financial position and future prospects.
In other recent news, WiSA Technologies reported a substantial increase in Q3 revenues, which reached $1.2 million, marking a 240% rise year-over-year. This growth was attributed to improved gross margins and a shift towards direct-to-consumer sales. The company also managed to decrease its inventory by 17%, ending the quarter with a robust cash position of $3.9 million.
In addition, WiSA Technologies confirmed the resignation of Mr. Gary Williams, with Mr. Stanley Mbugua succeeding him as the new Chief Accounting Officer. The company also extended the warrant exercise period, a strategic move to encourage warrant holders to participate in the exercise process, potentially increasing the company's equity base.
Furthermore, WiSA acquired Data Vault Holdings' intellectual property and trademarks, aiming to expand its market reach by 2025. Analysts anticipate a significant increase in WiSA E revenue in Q4 2023, with the company planning to hold an investor day in January 2024 to outline its future direction and technology offerings. Despite facing financial challenges as indicated by InvestingPro's analysis, these recent developments highlight WiSA Technologies' strategic moves and managerial decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.