WiSA Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Company's financial assets and liabilities that are measured at fair value on a recurring basis

The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 by level within the fair value hierarchy, are as follows:


	September 30, 2019
	Quoted		Significant
	prices		other		Significant
	in active		observable		unobservable
	markets		inputs		inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)
Liabilities:
Derivative liability	$	—	$	—	$	387
Warrant liability	$	—	$	—	$	21


	December 31, 2018
	Quoted		Significant
	prices		other		Significant
	in active		observable		unobservable
	markets		inputs		inputs
(in thousands)	(Level 1)		(Level 2)		(Level 3)
Liabilities:
Warrant liability	$	—	$	—	$	210

Schedule of changes in fair value of the Company's warrant liability and derivative liability measured at fair value using significant unobservable inputs (Level 3)

The following table includes a summary of changes in fair value of the Company’s derivative liability measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2019 and 2018:


	For The Three Months Ended				For The Nine Months Ended
(in thousands)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Beginning balance	$	387	$	25,776	$	—	$	20,832
Additions		—		6,328		216		7,886
Change in fair value		—		10,908		171		14,294
Reclassification to equity at initial public offering		—		(43,012)		—		(43,012)
Ending balance	$	387	$	—	$	387	$	—

Warrant [Member]

Schedule of changes in fair value of the Company's warrant liability and derivative liability measured at fair value using significant unobservable inputs (Level 3)

The following table includes a summary of changes in fair value of the Company’s warrant liability measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2019 and 2018:


	For the three months ended				For the nine months ended
(in thousands)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Beginning balance	$	39		5,350	$	210		1,228
Additions		—		111		4		176
Change in fair value		(18)		3,878		(193)		8,127
Reclass to additional paid-in capital		—		(9,118)		—		(9,310)
Ending balance	$	21	$	221	$	21	$	221

Schedule of the weighted average significant unobservable inputs (Level 3 inputs) used in measuring the Company's warrant liability that is categorized within Level 3 of the fair value hierarchy

A summary of the weighted average significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liability that is categorized within Level 3 of the fair value hierarchy as of September 30, 2019 and December 31, 2018 is as follows:


	September 30, 2019			December 31, 2018
Common Stock Price	$	0.90		$	3.42
Term (Years)		3.52			4.27
Volatility		58	%		58	%
Risk-free rate of interest		1.56	%		2.58	%
Dividend Yield		0.0	%		0.0	%