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OSSIC X is the world's first headphone that instantly calibrates to your anatomy for the most accurate and immersive 3D audio.
OSSIC X is the world's first headphone that instantly calibrates to your anatomy for the most accurate and immersive 3D audio.
Created by
10,263 backers pledged $2,708,472 to help bring this project to life.

A Very Sad Goodbye.

Posted by OSSIC (Creator)

Hello Backers,

It is with an extremely heavy heart that we must inform you that OSSIC is shutting down and will be unable to deliver the remaining OSSIC X headphones.

The OSSIC X was an ambitious and expensive product to develop. With funds from the crowdfunding campaign, along with angel investment, we were able to develop the product and ship the initial units. However, the product still requires significantly more capital to ramp to full mass production, and the company is out of money.

Over the last 18 months, we have explored a myriad of financing options, but given VR’s slow start and a number of high profile hardware startup failures, we have been unable to secure the investment required to proceed.

This was obviously not our desired outcome. The team worked exceptionally hard and created a production-ready product that is a technological and performance breakthrough. To fail at the 5 yard-line is a tragedy. We are extremely sorry that we cannot deliver your product and want you to know that the team has done everything possible including investing our own savings and working without salary to exhaust all possibilities.

The OSSIC X was started as a campaign to create immersive and interactive audio. One of the biggest questions was, in a world of small earbuds and phone speakers, do people really care about great audio? Are they truly interested in the next generation of 3D audio? The success of the campaign was a resounding “YES” that has had a ripple in the audio industry.

We will forever be grateful to you and the team members, investors, and business partners who believed in us and helped give our dream a fighting chance. We were able to achieve some amazing things in an industry that was, and still is, ripe for innovation. Your voice of support throughout these past 2 years will continue to bring change to the industry, as bigger players than us refocus their efforts into better, smarter, and more immersive audio. 

Thank you for all of your support, and we sincerely apologize that we could not deliver all of the headphones.


- OSSIC Team


More information: 

What was accomplished on the project and how were the crowdfunding funds used?

After spending over 2 years working on the Research and Development of the OSSIC X we were able to complete the development of the hardware and initial versions of the software. 

The headphone went through 5 proof-of-concept level builds, 4 engineering/factory builds, and 1 pilot production build—where we completed 250 units and delivered the first ones to those backers on Kickstarter who pledged for the innovator edition reward.

It took, at times, 20 people with expertise in software, electrical, firmware, mechanical, acoustical, signal processing, and sound engineering, as well as UI/UX, industrial design, and program management to develop and ship those units.

The crowdfunding money we received played a huge role in allowing us to get as far and accomplish as much we did – funding half of the R&D and production costs needed to bring the product to life.

Why was this so expensive to develop?

Inventing something new while also developing complex hardware is expensive. The addition of stretch-goals to add mobile support increased the software scope from two operating systems to five, added an incredibly powerful 32-core processor onboard the headphones for processing, and required us to enter into substantial business development with mobile manufacturers to support multi-channel connectivity. It ultimately doubled the size of our development. 

The unknowns that come from grounds-up development with so many new features ultimately stacked up to create delays and cost overruns.

What made this project so exciting, and ultimately ended up being its Achilles heel, was the complexity and scope. This project was complex because it had 3 large categories of development, all with new and unique elements: 1.) Hardware, 2.) Software, and 3.) Audio Ecosystem.

Hardware new/unique/different features: A typical headphone would only have 2 playback transducers, but the X has 8 playback transducers, 6 microphones, and multiple sensors. In addition to the complexity of more elements, head-tracking was a new feature, yet the trackers on the market were too slow. Thus we needed to upgrade mid-stream to achieve smooth tracking.

The software was complex because it required new algorithms to dynamically incorporate sensor information and beamform across the playback transducers. Additionally, with the stretch goals, we needed to support 5 different platforms: embedded-DSP, Windows, macOS, iOS, and Android for both UI and custom signal processing. A typical headphone has no software at all. The initial headphone units successfully incorporated custom algorithms and played back over Windows, macOS, and 3.5mm platforms. The iOS and Android app were created and were were on track to be finalized after working through the UI/UX with Beta backers on Windows and macOS.

Additionally, the audio ecosystem itself is complex as 3D audio continues to rapidly changing/developing. VR, gaming, film, and music workflows are different, with tools and formats varying across sectors, and VR/AR workflows were still being defined as we developed. 3D audio information is present in much of the media, but remained inaccessible to the user. Our goal was to ensure compatibility with as many devices as possible, and to give the best experience required ecosystem development and exploration of developer tools. To that end, developer tools including a VST plugin and FMOD Plugin were created, and released in beta to select developers.

How have other companies crowdfunding complex hardware projects succeeded? 

Most crowdfunded companies working on similar complex hardware such as Oculus, and Doppler labs have raised >$10 Million in other investment before delivering on their projects. 

As another reference, Creative labs claims to have spent over $100M working on 3D audio.

Why can’t you ship the remaining units?

We were not able to secure additional funding, and are out of money. It would take more than 2 million additional dollars to complete mass production of the remaining backlog.

What about other investment?

OSSIC raised substantial Seed Investment from sources other than crowdfunding. Crowdfunding represented about half of total funding.

Initial investment traction was strong, but the slower than expected adoption of VR and the failure of several high-profile crowdfunded hardware companies made it challenging for us to raise subsequent financing.

We explored over 150 investor partnerships in total. While we had some we thought were going to come together, ultimately they did not materialize.

What about StartEngine?

In February of this year, OSSIC launched a crowdfunded equity campaign on the StartEngine platform, hoping it could raise the initial funds to start mass production, and be a catalyst for broader investment. While we secured $130k in commitments, it was not enough interest for us to be able to move forward into production and so we ended the campaign without taking the funds.

What about OSSIC the company?

The company is shutting down effective immediately. We have a very dedicated team up folks who have remained for the last 6 months, working for free, doing anything they could to try and make the company succeed. Through their efforts we were at least able to ship the innovator units.

Can’t someone else build the product?

We engaged with many larger companies who had interest in our technology, but ultimately none of them had both the appetite and ability to make the required investment to bring the product to market.

Ricken Eriksen, bhagvan, and 42 more people like this update.


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    1. Missing avatar

      James Babson on

      That’s fine guys . It happens . Just PAY BACK myself and all other backers . Thanks

    2. Missing avatar

      Qing Xu on

      Please join

      This was a scam from the very begging.
      They gave an impression that the product was ready, and only need the fund to materialize it and for mass production.
      Now after two years and half, they still kept saying they didn't have the product prototype ready but ran out of money.

      No more trust on Kick Starter if they allow this kind of scam to happen over and over again!

    3. Edmundo Oliver

      joined the class action

    4. Rui Lopes on

      Another great scam. Shame on you. Show some respect to all the backers.

    5. Missing avatar

      André de Jager on

      Wow that is disappointing. Putting all the processing into the headphones was too ambitious. I would hav been happy with a simpler headphones with a USB connector that I could use with my VR.

      Not in US, but I joined

    6. Stephane on

      Another kickstater fiasco, i won’t invest anymore on this platform, it’s the third campaign i’m backing which goes bankrupt. I still believed that starting a company is challenging as i dit it myself, but i also know that knowing how to deal with a defined budget to achieve goals is a pre-requisite that those guys are lacking big time.

    7. Missing avatar

      Peter Rechnagel on

      Not from the US but joined anyway to show my support:

    8. Andreas

      I spent 239.00$ on this product. As written in the Terms for creators under term 4 I reclaim my money.

      Even I am from outside the USA I have joined the group

    9. Shaun Brown on

      Absolutely shocking! Project was fully backed and we've not been provided a product so see you guys in court!

    10. Chua Yu Zhan on

      Gizmodo picked up the story. Join the class action, let’s get clearer answers.

    11. Justin Lane on

      @Phants then you don't really understand how kickstarter works, you think you do but, it is written there plainly in black and white if a project cannot or will not produce the product they have to refund the money, or face the legal consequences, the fact that these thieves have posted this and have attempted to cover their own butts only solidifies the fact that they KNOW they are in the wrong and hoping this will only smooth over the anger felt by all. Another fact is if they are so sad and have put their own money in to this as they say they have then why are they all still getting a massive payout (to the tune of over $5 million) on the 25th of August this year - they are trying to hide that as well, when that money is legally the backers money and we will be getting it back, one way or another these bastards will pay.

    12. dragonclaw26 on

      Just give me all your IP's on the headphones and Ill make something happen with it. Will be a happy backer who did not receive what is owed to him.

    13. Joshua on

      They spent over $2 million on marketing. Marketing a product they're $2 million shy of delivering on. Know what would have been good publicity? Tens of thousands of backers thrilled with their headphones, taking to social media to tell all tbeir friends to get a pair.

      If only Ossic management had a pair between them and came clean on their finances from the start and enlisted the help of some of their enthusiastic supporters.

      I say full ownership of all Ossic tech, R&D, trad Ed marks, intellectual and tangible assets pass into collective ownership of all backers and the fate of all things Ossic to be democratically and openly debated and decided upon. Whether we collectively try to organize production and ensure a viable business or we just publish everuthing to the collective commons and make it free for all an ex sundry to take and develop as they like remains to b Ed seen.

    14. Missing avatar

      Kevin Francis on

      I joined the group. I hope these criminals are brought to justice and forced to refund every single penny they swindled out of people. I don't care if it leaves them penniless for the rest of their lives. They deserve no less.

    15. Kai Chinn on

      @Daniel Crathern
      10,000 is still 10,000 people and will be watching this closely now.

    16. Kai Chinn on

      well this is really sad and the actions must ensue...

    17. Ricardo Singer on

      I just wonder if these guys did their greatest possible effort to bring this project to fruition or they just played the "VC silicone valley game" and spent our money.

    18. Missing avatar

      shariq on

      I've been holding out on upgrading my headphones for this but I guess that time won't be coming

    19. Night1505

      Brian Young 2 days ago

      "I hope everyone reads OSSIC’s now withdrawn SEC filing and pays attention to the promissory notes area. In August, OSSIC will give a fat pay check to Jason Riggs, Joy Lyons and her family with funds that essentially come from Kickstarter and Indiegogo(it’s still gaining interest at this point)."

      @Brian - I've been saying exactly this since before they even withdrew the SEC filing. People need to understand that all the information in that document is still valid, even though the offering was withdrawn. Those are actual financial figures, or had better be, or else they are also on the hook for falsifying the SEC filing.

    20. Missing avatar

      Daniel Crathern on

      Called them out a long time ago. I was already resigned to not receiving my headphones, still....that is the most disrespectful and cynical cop out I have ever known. I've joined the group and who knows, with enough public pressure maybe something will happen but to be realistic, there are only 10,000 of us scattered across the globe. Lesson learned.

    21. Micheal T. Dodson

      This makes Baby Jesus, wearing a NASCAR racing suit, wanna cry! This was the one project I was really looking forward too. Shattered Dreams for so many who just want good sound. You all made Bernie Madoff and Chris Roberts (Star Citizen) proud. I won't join lawsuit, cause I despise FB, but will write this off as "stupid tax." It will be a long time before I think of investing in a Kickstarter again.

    22. Missing avatar

      Unkle Sam on

      I had a feeling they were gonna rip us off Lesson learned......

    23. Sander Viet on

      This is insanity. Very clearly a scam of the biggest proportion.
      I have joined the lawsuit:

    24. Rogan Campbell on

      I know it's probably very unlikely to happen, but I firmly believe that Kickstarter itself should AT THE VERY LEAST refund every backer the $40 we paid for shipping. Sure, Ossic went bust with all our money and they probably deserve to be crucified but that's how the fireball bounces with crowdfunding.

      I, like every other person who backed this absolute dumpster fire of a project, am severely disappointed that it failed. Not because I'm out the money, but because I really wanted to experience something new with sound and music. Ossic looked like it could provide that. It didn't.

      So, KS, where is my $40?

      At least consider keeping any additional payments made for shipping of a completed product in escrow in the future so that if it doesn't ship, you absolutely CAN and WILL refund that money.

    25. Tyler Scott on


      Thanks for the years of rare useful updates, lying updates, and unresponsiveness for changing shipping addresses, Ossic. Either never seeing you ever again, or seeing y'all in court~

    26. Missing avatar

      Brandon Marble on

      With a project so ambitious, I would have expected Ossic to have been more resilient with their progress

    27. Figaro on

      You guys better start explaining yourselves better. You are all over the news now as one of the biggest crowdfunding scams in history. Of course, you all have the option to ignore all this news and us backers but good luck finding a job anywhere in this industry (or any other for that matter) after you've been labeled as scammers and thieves.

    28. Missing avatar

      Sandor Varga on

      Spent 250.00$ on a product with only failed promises. How is their no update on our refunds? Not one mention of it in the update...we can’t let them get away with this, a complete scam. I have joined the group

    29. Missing avatar

      Tim Tranquill on

      They spent all our money on going to all these trade shows and hosting parties. I'll probably never do another kickstarter again. This was my first one and it was a complete scam.

    30. Missing avatar

      Andreas Hamm

      I'll not join the facebook group (because I don't use facebook), yet I'd be interested in joining the lawsuit (if that's applicable for me being outside the US).

      I'm sick of those tech kickstarters, specifically those with little to no valuable updates and lame excuses. I pledged so many and very few of them made an actual product. For those people who really don't want to pledge for anything on Kickstarter anymore, reconsider your opinion about Kickstarter itself and support artists. 90% of them have never disappointed me and you might end up with some unique, personalized items.

      Take a look at my profile and check out, how often I backed someone twice or even more: most of these people are creative people. If you find a tech or design company twice in there, then usually the company delivered at least once a successful / working product. Of course I lost a lot of money over time with unsuccessful projects, but this is part of Kickstarter. On the other hand I got unique products that I could not get off the shelf. Therefore, I don't complain about every loss on Kickstarter and enjoy every other successful campaign.

    31. Missing avatar

      Medoc - Weresheep of Sin on

      Seriously. They will have to give a refund. I have been waiting for those headphones for 2 years and this is what happens. I am extremely disappointed and frustrated by this company.
      I will join this group

    32. Robin Callan- Kolthoff on

      They should at least give us something after all this time.

    33. Nils Oun on

      Extremely disappointed indeed. Feels like giving OSSIC bit of extra rope and they hang all of us with it. Joined the lawsuit group Pledged $249 over two years ago with a naive hope I ever receive them magical promises. I'm utterly disappointed in Kickstarter aswell and this was the last time I ever recommend or join a campaign in this platform. Got scammed in Indiegogo and now Kickstarter. :( Not good!

    34. Felix on

      This is very disappointing.

      See the Kickstarters Terms for creators under term 4:
      "If a project founder fails to complete his project successfully and can not hand over the promised rewards, he has failed to fulfill essential obligations under the agreement between him and his supporters. To make amends, he should do his best to bring the project to a better conclusion for his supporters in any other way. A project founder in this position did not clarify the situation until then and fulfilled his obligations to his supporters after completing the following steps:

      - He informs his supporters about which project activities have already been carried out, for which purposes the project budget has been used and why the project can not be completed as planned.
      - He works diligently and in good faith to bring the project to the best possible conclusion within a timeframe communicated to his supporters.
      He can prove that the project budget has been used appropriately and every effort has been made to complete the project as promised.
      - He has always been honest with his supporters and has not communicated any material misrepresentations.
      -He offers to pay the remainder of the project budget to the supporters who have not yet received their rewards (in proportion to the financial contributions made), or explains how this budget will be spent to complete the project in another way ,
      The project founder is solely responsible for the promises made in his project. If he does not comply with the terms of this agreement, his supporters may, if necessary, take legal action."