WiSA Technologies, Inc. has announced today that it has regained compliance with Nasdaq's minimum bid price requirement and believes it satisfies the stockholders’ equity requirement for continued listing on the Nasdaq Capital Market.
On April 5, 2024, the Nasdaq Hearing Panel granted WiSA Technologies an extension to meet the exchange's listing criteria. The company was required to comply with the minimum bid price rule by April 28, 2024, and the stockholders’ equity rule by June 28, 2024. WiSA Technologies received confirmation on April 29, 2024, that it had met the bid price requirement and would be subject to a one-year monitoring period.
To address the stockholders’ equity requirement, which necessitates maintaining a minimum of $2.5 million, WiSA Technologies took several measures. These included reclassifying approximately $4.6 million of its warrant liabilities to additional paid-in capital and raising about $9.2 million in net proceeds from the sale of common stock and other securities. These actions have collectively increased the company's stockholders’ equity.
WiSA Technologies, formerly known as Summit Wireless Technologies, Inc., is a Delaware-incorporated company specializing in semiconductors and related devices. The company is headquartered in Beaverton, Oregon, and trades on the Nasdaq Stock Market under the ticker symbol WISA.
The company's CEO, Brett Moyer, has signed off on the report filed with the SEC, confirming the financial maneuvers undertaken to satisfy the Nasdaq's requirements. This announcement is based on the company's most recent 8-K filing with the Securities and Exchange Commission.
In other recent news, WiSA Technologies has made significant strides in its business operations. The company recently announced the appointment of Kimberly Briskey to its Board of Directors. Briskey brings over 15 years of experience in strategic finance and business operations, currently serving as the Brand CFO of Eddie Bauer at SPARC Group LLC.
In financial developments, WiSA Technologies revealed its Q1 2024 results and the launch of WiSA E, a new technology for wireless immersive audio transmission. The company has secured five licenses for WiSA E, with an additional three licenses expected by year-end. Revenue from these licenses is anticipated in the second half of 2024.
The company also announced the resignation of Lisa Cummins (NYSE:CMI) from the Board of Directors. Furthermore, WiSA Technologies has bolstered its cash balance to meet NASDAQ listing requirements and is strategically targeting the TV market, with plans to diversify into other sectors. The company's diverse revenue streams include royalties, licensing fees, engineering services, and module sales.
On the earnings call, WiSA Technologies reported that it has reinforced its cash balance for NASDAQ compliance and expects revenue from licensees in the latter half of 2024. The company's monthly operating expenses are projected at $900,000. Still, the company maintains a healthy cash balance of approximately $8 million, and future revenue is expected to be bolstered by anticipated license agreements and royalties.
InvestingPro Insights
Following WiSA Technologies' recent compliance with Nasdaq's listing criteria, investors may find the current financial metrics and market performance provided by InvestingPro to be of interest. With a market capitalization of $11.76 million, WiSA Technologies is operating on a small scale within the semiconductor industry.
The company's financial health is reflected in its negative P/E ratio of -0.45 for the last twelve months as of Q1 2024, indicating that it has not been profitable during this period. Furthermore, a significant revenue decline of 42.81% over the last twelve months underscores the challenges WiSA faces in generating sales growth.
InvestingPro Tips highlight that WiSA holds more cash than debt, which is a positive indicator of financial stability. However, the company is also quickly burning through cash, which raises concerns about its long-term sustainability.
Moreover, the stock's price has experienced a strong return over the last month, but this should be viewed in the context of a significant price decline over the last year and the last five years. This volatility may be of particular interest to investors looking for short-term opportunities, but it also suggests caution for those considering long-term investments.
For investors seeking a deeper analysis of WiSA Technologies, additional InvestingPro Tips are available, providing more detailed insights into the company's financial health and stock performance. Interested readers can explore these tips and take advantage of an exclusive offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With 15 additional tips listed on InvestingPro, investors can gain a comprehensive understanding of WiSA's investment potential.
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