|6 Months Ended|
Jun. 30, 2018
|Subsequent Events [Abstract]|
|Subsequent Events [Text Block]||
The Company’s Series D and Series F convertible promissory notes as well as its other convertible promissory notes, excluding its Series C Convertible Notes and its Series G Notes, had maturity dates of June 30, 2018 (the “June 30
thNotes”). On June 30
,2018, the June 30
thNotes with a principal balance of $26.4 million went into default. The Company obtained consents from the holders of such notes to initially extend the maturity date of the June 30
thNotes to June 15, 2018 and then requested and received consents to extend the maturity date to July 25, 2018.
As of July 15, 2018, the Company was in default on $2,812,500 of the Series G Notes. On July 20, 2018, the Company and the holders of the Series G Notes agreed to (i) extend the maturity date of such notes from July 15, 2018 to July 25, 2018 and (ii) agreed to make the Series G Notes mandatorily convertible in connection with an IPO at a conversion price of the lesser of $4.50 or 40% of the highest price of the common stock sold in an IPO. In consideration for the extension of the maturity date and the agreement to make the Series G Notes mandatorily convertible, the Company agreed to issue warrants to purchase an additional 625,000 shares of common stock to the Series G Note holders.
Pursuant to a settlement agreement that we entered into with MARCorp Signal, LLC, on July 25, 2018, with respect to certain disputes, we issued to MARCorp Signal, LLC a warrant to purchase an aggregate of 487,864 shares of common stock.
On July 26, 2018, the Company closed its IPO. The Company’s registration statement on Form S-1 (File No. 333-224267) relating to the IPO was declared effective by the SEC on July 25, 2018. The shares began trading on The NASDAQ Capital Market under the ticker symbol (WISA) on July 27, 2018. Under the offering the Company issued 2,400,000 shares of common stock at an offering price of $5.00 per share, raising gross proceeds of $12,000,000. In aggregate, the shares issued in the offering generated approximately$10,355,000 in net proceeds, which amount is net of $900,000 in underwriters’ discounts and commissions, $220,000 in underwriters’ accountable and non-accountable expenses and legal, accounting and other estimated offering costs of $525,000. Upon the closing of the IPO, (i) all shares of preferred stock then outstanding were automatically converted into 2,762,594 shares of common stock and (ii) all convertible notes payable were automatically converted in to 9,516,155 shares of common stock, except for $200,000 of such notes which were repaid in cash immediately following the offering.
Effective as of September 11, 2018, the Company changed its name to Summit Wireless Technologies, Inc.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef