WiSA Technologies, Inc. has successfully regained compliance with Nasdaq's equity listing rule, according to a confirmation received from the Nasdaq Office of General Counsel on July 3, 2024.
The company, which operates in the semiconductor and related devices industry, faced challenges meeting the equity requirement under Nasdaq Listing Rule 5550(b)(1). However, following a decision by the Nasdaq Hearing Panel on April 5, 2024, WiSA Technologies has now corrected its deficiency.
The Nasdaq Panel has instituted a monitoring period that will last until July 3, 2025. During this time, the company's adherence to the equity rule will be under close scrutiny. Should WiSA Technologies fall short of the requirement again, it will not be granted the usual opportunity to submit a compliance plan or be given additional time to rectify the issue. Instead, the company would face a delisting determination letter and would have the chance to appeal at a new hearing.
The company is headquartered in Beaverton, OR, and is incorporated in Delaware.
The above news is based on a recent SEC filing.
In other recent news, WiSA Technologies reported its first-quarter 2024 results and the launch of WiSA E, a new technology for wireless immersive audio transmission. The company has already secured five licenses for WiSA E and anticipates three more by year-end. Revenue from these licenses is expected in the second half of 2024. WiSA Technologies also announced the appointment of Kimberly Briskey to its Board of Directors, who brings over 15 years of strategic finance and business operations experience. Concurrently, Lisa Cummins (NYSE:CMI) resigned from the board.
WiSA Technologies maintains a healthy cash balance of approximately $8 million, bolstering its financial position to meet NASDAQ listing requirements. The company is strategically targeting the TV market, with plans to diversify into other sectors, and its diverse revenue streams include royalties, licensing fees, engineering services, and module sales. Despite some agreements not including a royalty, product launches are expected to generate revenue. Finally, WiSA E has attracted interest from multinational companies, indicating strong market performance.
InvestingPro Insights
WiSA Technologies' recent compliance with Nasdaq's equity listing rule is a positive step for the company, reflecting its ability to meet crucial financial requirements. According to InvestingPro data, WiSA holds a market cap of approximately $15.75 million, with a significant return over the last week of 14.29%. This performance is particularly notable given the company's high price volatility and the fact that its stock price often moves in the opposite direction of the market. Additionally, WiSA has been facing challenges with its financials, as evidenced by a gross profit margin of -122.36% and a substantial decline in revenue growth of -42.81% over the last twelve months as of Q1 2024.
InvestingPro Tips highlight that while WiSA holds more cash than debt on its balance sheet, it has been quickly burning through cash. Analysts do not anticipate the company will be profitable this year, and the valuation implies a poor free cash flow yield. These factors are critical for potential investors to consider, especially in light of the company's recent efforts to maintain Nasdaq compliance. For a deeper analysis and more InvestingPro Tips, readers can explore the full list of insights, which includes additional tips, at https://www.investing.com/pro/WISA. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, gaining access to valuable market insights that could inform investment decisions.
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