WiSA Technologies Reports Q1 2023 Results

WiSA Technologies, Inc. (Nasdaq: WISA), a developer of spatial, wireless sound technology for smart devices and next-generation home entertainment systems, reported first quarter 2023 financial results in its Form 10-Q, which was filed on May 15, 2023. In its conference call and presentation to be held on May 16, 2023 at 5:30 am PT / 8:30 am ET, management will discuss the company’s results and its intention to acquire Comhear, Inc. (Comhear) as announced on May 15, 2023. WiSA Technologies Signs Letter of Intent to Acquire Comhear, Inc. Joining the call to discuss Comhear’s technology and market applications will be Mike Binn, senior vice president of business marketing from Comhear.

“Exploring new opportunities to expand our addressable markets, yesterday we announced that we entered into a non-binding letter of intent to acquire Comhear, Inc., a developer of AI-enabled adaptive audio technology,” said Brett Moyer, CEO, President, and Chairman of WiSA Technologies. “Comhear’s proprietary adaptive filtering and beam steering system captures environmental room dynamics and is a natural fit to enhance our product offerings. We expect to achieve strong synergies in customer engagement, with accretive results beginning in Q4, 2023.”

“As previously announced, the slowdown in spending on consumer electronics impacted our results and the industry overall in Q1 2023,” remarked Moyer. “We remain excited about the prospects to scale our business in 2023 and still expect full year revenue growth this year, with stronger revenue contribution coming in the second half of 2023.”

Q1 2023 Financial Highlights

• Q1 2023 revenue was $0.5 million, compared to $0.6 million in Q1 2022 and $0.9 million in Q4 2022.
• Q1 2023 gross margin as a percentage of sales was negative 267%, compared to 11% in Q1 2022 and 2% in Q4 2022. The decrease in gross margin during Q1 2023 was mainly attributable to a $1.3 million increase in inventory reserves.
• In February 2023, the company closed a registered direct offering and concurrent private placement priced at-the-market for net proceeds of approximately $5.3 million.
• In March 2023 the company received net proceeds of approximately $1.6 million in a registered direct offering and concurrent private placement priced at-the-market.
• At March 31, 2023, cash and cash equivalents were $5.3 million.

Subsequent Financing Events