| I'll admit to being a bit of an audiophile. Don't get me wrong, Bluetooth technology is awesome. But I wouldn't listen to my favorite album with anything less than a compact disc. Bluetooth is like shoving sound through a narrow tunnel. You get the gist but lose a lot of the peripheral qualities that make music and sound extraordinary. So, it shouldn't be a surprise that I've actually heard of WiSA Technologies (NASDAQ: WISA) long before today's write-up. While I don't personally own any of their equipment, I've heard good things. Which makes this newsletter a bit more personal and pleasurable to put together for you all. WiSA Technologies Inc (NASDAQ: WISA) - 1-month trading range: $0.95- $1.64
- Typical average daily volume: 487,000
- Float: ~ 3.79 million
WiSA's Business WiSA develops wireless audio technology for smart devices and next-gen home entertainment systems. Their technology, cleverly called WiSA, transmits high-definition audio wirelessly to multiple speakers in a room. Major brands including Samsung, LG, Sony, and Sonos all support the tech. Plus, WiSahas partnerships with leading technology providers, such as Intel and Qualcomm. So, what makes WiSA different from Bluetooth? Here are some key differences: - WiSA is designed specifically for high-definition audio.
- It can transmit up to 8 channels of audio without losing quality and has ver low latency.
- The technology is extremely reliable and can support multiple speakers without interference.
WiSA envisions itself as the spatial audio standard across the audio marketplace and wants to become natively embedded in OEM SoC (the microchip that processes audio). 
Source: WiSA Investor Relations
WiSA sells its products directly through its website (home theater and discrete systems), retail sites like Best Buy and Amazon, as well as part of OEM. While the company doesn't break out its sales by channel, we can assume based on the information below that the majority of its revenues come from OEM.
Source: WiSA SEC Filing Financials 
Source: Stockanalysis.com From what I knew about the company, I'm actually surprised at how small they are. The company's best sales came in 2021, clocking in at $6.54 million. Now, they're half that. While WiSA generates a gross profit, i's SG&A and R&D are nearly twice their sales every year. That's not a recipe for success. In fact, the operating cash flow has gotten worse, growing from a cash burn of around $10 million per year to $17.5 million. The company initially funded its operations with heavy amounts of short-term debt and common stock. Borrowing subsided around 2019 as the company focused on share issuance as it headed into its IPO on November 30, 2022, where it raised $7.6 million. Shares are down more than 97.5% since the IPO, which is a shame given their solid product line. Promoter Activity This week a little birdie told us WiSA promotional is picking up. Starting right here with this newsletter... * There's been a flurry of activity around the name lately. Shares split 1/100 back in January, sending the stock into the dumpster. However, there was a massive spike in volume as shares surged on March 23, 2023, on news the company's stock had regained its NASDAQ listing. Additionally, the company announced on April 7th it expected to receive $2.5 million in funding from a private placement of warrants at $1.66 per share with an exercise price of $1.41 per share, immediately executable upon issuance. A week later, the company announced it paid off its entire senior secured convertible notes issued on August 15. Other news includes:
- March 16, 2023 - The company's latest annual results highlighted expected revenue growth in 2023 driven by back-half product launches.
- March 17, 2023 - HC Wainwright adjusted its price target from $5.00 to $5.50 while maintaining its buy rating.
- March 17, 2023 - The auditor Burr, Pilger & Mayer LLP(BPM LLP) gave an unqualified opinion expressing doubt that the company can continue as a going concern.
Straight to the Facts At first glance, WiSA might appear to be living on borrowed time... But not all hope is lost. The company hopes its second-half product launch will give it the kickstart it needs to turn things around. Given the number of outstanding warrants and the current share price, we fully expect promoter activity to pick up this stock in the next several months. Shares have already rallied form $1.00 to $1.58 in weeks, so this is definitely a tradeable stock to keep an eye on, especially with its low float.
The bottom line? This is definitely a stock to add to your watchlist.
Always at your service, Baron Von Stocks | 
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