Related Parties |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2025 | |||
| Related Parties | |||
| Related Parties |
Nathaniel Bradley and EOS Holdings Nathaniel Bradley, the Chief Executive Officer (“CEO”) of the Company, is a control person of EOS Holdings which became a related party of the Company at the close of the DV Asset Acquisition on December 31, 2024. In addition, Sonia Choi, the Company’s Chief Marketing Officer is the spouse of the Company’s CEO and holds the position of Chief Marketing Officer of EOS Holdings, a related party of the Company. EOS Holdings received 3,999,911 shares of common stock of the Company at the close of the transaction. As described in Note 5 Borrowings, the Company owes $9.7 million of principal balance under the DV Convertible Note to EOS Holdings, and EOS Holdings owes $299,000 in notes receivable to the Company, as of March 31, 2025. The Company has recorded $5,000 in interest income on the notes receivable for the year ended March 31, 2025. In addition to the DV Convertible Note and the Data Vault Note Balance, on January 16, 2025, the Company entered into a Transition Services Agreement (“Transition Services Agreement”) to receive from EOS Holdings, employees to provide transition services in connection with the Acquired Assets for a period of up to three months. For the period from January 16, 2025 through March 31, 2025, the Company has paid $428,000 to EOS Holdings. Helge Kristensen Mr. Kristensen has served as a member of the Company’s board of directors since 2010. Mr. Kristensen serves as vice president of Hansong Technology, an original device manufacturer of audio products based in China, president of Platin Gate Aps, a company with focus on service-branding in lifestyle products as well as pro line products based in Denmark and co-founder and director of Inizio Capital, an investment company based in the Cayman Islands. For the three months ended March 31, 2025 and 2024, Hansong Technology purchased modules from the Company of approximately $11,000 and $25,000, respectively, and made no payments to the Company during those same periods. At March 31, 2025 and 2024, Hansong Technology owed the Company approximately $35,000 and $29,000, respectively. For the three months ended March 31, 2025 and 2024, Hansong Technology sold no speaker products to the Company, and the Company made no payments to Hansong Technology for the three months ended March 31, 2025 and approximately $25,000 for the three months ended March 31, 2024. At March 31, 2025 and 2024, the Company owed Hansong Technology approximately $43,000 and $225,000, respectively. As of March 31, 2025 and December 31, 2024, Mr. Kristensen owned less than 1.0% of the outstanding shares of the Company’s common stock. |