In 2019, the Australian hearing tech producer Nuheara was shining bright enough as a lone star for Samsung to try to buy it for AU$84m (approx US$55.3m). In the end – and it looks like the end now – a financial fizzle has meant the company looking more like a shooting star as it failed to match the promise of its technology. Perth-based Nuheara announced its move into voluntary administration just days ago, appointing KPMG administrators to take over.

A KPMG spokesman told NewsWire administrators were conducting an “urgent assessment” of the business and that Nuheara would continue to trade throughout the process.  A first creditors’ meeting is booked for August 19. Nuheara has 22 employees, including a sales representative in the USA.

According to the Sydney Morning Herald, the company has gone into administration after failing to raise funds to meet a deal with a Taiwan business partner, Realtek, with whom it was working on a new chip to power Nuheara’s earbuds. Realtek Semiconductor Corporation is the holder of a AU$2.5m convertible note [a short-term loan] that has a maturity date of September 7, 2024.

“The company is disappointed that it has been unable to reach a satisfactory commercial agreement with Realtek regarding the convertible note,” Nuheara announced.  Its most recently posted financial results showed the company had a net loss of AU$12.6 million, from revenue of AU$1.9 million.

Tech and general media response to Nuheara product had been positive, the BBC stating that Nuheara was “taking big strides to build something beyond the typical wireless earbuds”, and TechRadar singling out the Nuheara IQbuds Max from “some of the most interesting smart hearables” at CES 2020.

Sources: Sydney Morning Herald/news.co.au