Q2 2023 WiSA Technologies Inc Earnings Call

Speaker 1: Good day and welcome to the WIFIS Technologies second quarter 2023 results conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the start key followed by zero.

Speaker 1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to David Barnard with LHA Investor Relations. Please go ahead.

Speaker 2: Thank you Betsy. With us today is Brett Moyer, CEO and President.

Speaker 2: Before turning the call over to Brett, I would like to remind everyone that today's presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Exchange Act of 1934 as amended.

Speaker 3: to help consumers enjoy immersive audio that is delivered by Dolby Atmos, Dolby Atmos Music, DTS X, and those audio forms.

Speaker 3: We stream to up to six or eight speakers currently, road map to 10. But today with the announcements that we just completed at the end of July , we are now able to talk about a software implementation in smart devices that can stream out to Wysa certified speakers. And we will give you more detail as we go through this presentation. Where does Wysa fit in the audio world? We are not the creators of the content, or the wireless, or the encoding and decoding that Dolby or DTS X implement. What we are is either hardware or software now that allows us to use standard Wi-Fi chips to transport audio to speakers that is highly synchronized.

Speaker 3: and highly synchronized to the video that you are seeing in a high depth quality. The other role we serve for the industry is we have Wysat LLC which is an independent organization for certification of interoperability between products, between brands. That's the one that is led by Tony Ostrom. As we look forward to launching Wysa-e, we launch at this time unlike 10 years ago when we launched the original HT. We launched with a strong customer base, a very high reputation in the industry for delivering the best wireless performance out there. Technically.

Speaker 3: with the press release for Realtek in January 22. And once we made that announcement, it kicked off two efforts within the company. One is clearly the uplifting of the IP from WysaDS into a 5 GHz, more channels, higher resolution technical process for software. But the other was driven by the sales and product marketing team to work with strategic customers that can help define both the performance requirements that are minimally required for Wi-Fi, the feature sets that they need, and the pricing that's appropriate for their type of products. And so with the announcements in July , we're now able to talk about these results. So the first announcement on July 25, this was a set of software tools.

Speaker 3: with the press release for Realtek in January 22. And once we made that announcement, it kicked off two efforts within the company. One is clearly the uplifting of the IP from WysaDS into a five gigahertz, more channels, higher resolution technical process for software. But the other was driven by the sales and product marketing team to work with strategic customers that can help define both the performance requirements that are minimally required for Wi-Fi, the feature sets that they need, and the pricing that's appropriate for their type of products. And so with the announcements in July , we're now able to talk about this results. So the first announcement on July 25th, this is with a set of software tools and hardware tools that may be not stereo or stereo.

Speaker 3: immediately transparent to the everyday investor or consumer. But these tools are designed to A, make it easy to take YCE to production in the factories, but I think more importantly, make it easy to port YCE from one SOC to another. So why is that important? Well, if you think about a large tier one TV company or consumer electronics company, you know, LG or Samsung or Hisense or TCL or Sony. Typically their product lines, when you look at, say the TV, they have their own custom SOC, which is the chip that runs the TV and delivers the features at the high end. They're usually using MediaTek or Realtek or Amlogic in the mid range and the lower end. So what does that mean? So the audio division does not want to design soundbars or speakers for each one of those SOCs. So by creating the software tools to make it easy to port an implementation from one SOC to another, it allows a consumer electronics company to choose YCE and allow the audio groups to develop speakers around YCE and know that no matter what TV or what soundbar or what smart device the other sister divisions are doing, it will be able to interface with their audio. So we think that's very important to the success.

Base level technology, that's new.

In our case, because we haven't had repeated conversations with.

These strategic core.

Customer targets.

That we think that's cut in half.

Or or even more right.

So the reason we said second half is there are some design discussions that would impact second half.

Next year there are most of the designs are targeted to 2025, which depending on the company means Q4 'twenty four shipments.

Yeah, and a couple are focused on smaller quicker implementations that could impact the second half.

In a broader way.

And your sales are recognized on sales to the customers or are they recognized on the.

Sale to the end consumer.

I don't know to the customer we don't ship anything unless it's been paid for.

So when it's paid as a sale.

Okay.

Alright, and if you can just give us an update on the on the acquisition where you are timeframe.

Likely yes that leasing all of them.

Yeah, Let me just expand the other answer a little bit Jim. So what I said is we don't ship unless it's been paid for.

Which is true, but as you move into why you say E. There could be.

Licenses are prepaid.

That will then get amortized out so.

As you.

As investors start looking at 'twenty four 'twenty five.

There could be prepaid license does that show up anytime next year or this year for that matter.

Alright in.

In terms of the Com your acquisition.

We are I believe we have most of the.

Items in a definitive agreed on.

Georgia has worked diligently with the calm your team on that.

And I think really the the long pole in the tent now is two fold. One is there some business conditions were waiting to get finalized at com here.

So we have confidence to go forward with the acquisition.

And then two we just have to go to a shareholder vote.

And have you have you scheduled the shareholder vote or is that are you know.

How long will that take.

I wont schedule the shareholder vote until we sign the definitive agreement, which will follow.

Achieving some of the business objectives, we need to have achieved.

And the shareholder vote is I don't know 30, 45 days right right.

So if you're trying to put it on a calendar.

End of October .

It would be a fair guess.

Yeah, I am I, I always pushed things a little to the right, but that sounds reasonable enough. Okay.

Great Yeah, that's it for me Thanks, a lot.

Okay.

Yeah.

This concludes our question and answer session I would like to turn the conference back over to Pat Miller for any closing remarks.

Alright, I'd like to thank everybody.

Everybody for their participation today I'd like to thank the Portland team again for doing a great job of getting why say eat lunch.

And we really look forward to bringing it to the market in consumer over the next 18 months.

Thank you.

Yeah.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.