Brett Moyer, the CEO, President, and Chairman of the Board at WiSA Technologies, Inc. (NASDAQ:WISA), recently sold a small portion of the company's stock. According to a recent SEC filing, Moyer sold 84 shares of common stock on November 20th at a price of $1.978 per share, totaling approximately $166. This sale was made on the open market to satisfy tax obligations related to the vesting of equity awards, rather than as a discretionary transaction by Moyer. Following this transaction, Moyer retains ownership of 249,764 shares in the company.
In other recent news, WiSA Technologies reported a notable upswing in Q3 revenue, reaching $1.2 million, marking a 240% increase from the previous year. This surge was attributed to an enhanced gross margin and a strategic pivot towards direct-to-consumer sales. Meanwhile, the company also managed to decrease its inventory by 17% and ended the quarter with a strong cash position of $3.9 million.
Among the recent developments, WiSA has shipped its intellectual property for a set-top box, anticipating a European debut by Christmas 2023. Additionally, the company has acquired Data Vault Holdings' intellectual property and trademarks, paving the way for future expansion and broadening its market reach by 2025.
Analysts have noted WiSA's expectations for a significant Q4 2023 revenue increase. The company is also planning an investor day around CES in January 2024 to outline its future direction and offerings. The integration of WiSA's audio technologies with Data Vault's blockchain and AI capabilities is a key strategic move aimed at targeting high-growth markets.
InvestingPro Insights
While Brett Moyer's recent stock sale was minor and primarily for tax purposes, it's worth examining WiSA Technologies' current financial position to provide context for investors. According to InvestingPro data, WiSA's market capitalization stands at a modest $13.24 million, reflecting its status as a small-cap company in the technology sector.
InvestingPro Tips highlight some concerning trends for WiSA. The company is "quickly burning through cash" and "suffers from weak gross profit margins." These factors may contribute to the stock's high price volatility, as noted by another InvestingPro Tip. The company's financial health is further underscored by its revenue of $2.19 million in the last twelve months, with a negative gross profit of $0.18 million during the same period.
Despite these challenges, it's not all doom and gloom for WiSA. An InvestingPro Tip points out that the company "holds more cash than debt on its balance sheet," which could provide some financial flexibility. Additionally, "liquid assets exceed short term obligations," suggesting that WiSA may be able to meet its near-term financial commitments.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for WiSA Technologies, providing a deeper dive into the company's financial health and market position.
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