WiSA Technologies, Inc. (NASDAQ:WISA) Q3 2023 Earnings Call Transcript

And finally, as we talked about, we think WiSA E creates the opportunity to lower prices on audio products by eliminating the duplication of audios and soundbars in TVs. So what’s gone on since we launched at the end of July. We’ve had more than 60 meetings, presentation, demos across 30 companies. So frequently, this means we’ve gone back two or three times to some of the bigger companies to make sure the audio divisions, the TV divisions, the technology approval people are all going through and reviewing WiSA E or testing WiSA E and demonstrating WiSA E. We have 13 brands specifically around the licensing opportunity that we announced 30 days ago. We’ve met with 13 of them, seven of them have — are currently reviewing the licensing agreement right now.

We think this is great progress by the sales team and the WiSA Association to be to so quickly have seven brands reviewing our license agreement. And then finally, the final milestone for — or people trying to track our progress is we’ve shipped more than 85 development boards for WiSA E modules to let brands test, develop, et cetera, on WiSA E, and that’s worldwide. All regions for consumer electronics. Finally, we think there’s going to be a lot of press coming up at CES just before — just after CES. But we will say that one of the big things is we will show a Tier 1 TV brand with WiSA E embedded in it, streaming using just our software to speakers. We think that’s a fundamental milestone that will excite the industry. We think all these meetings we’ve had will drive executives into the WiSA boost and that will — we’ll have a very successful CES, and we think all this activity will impact 2024s revenue materially.

So with WiSA E, we’ve talked a lot today about the TV being able to go to audio speakers or soundbars or even smart speakers. We think that’s important. But as you look forward into 2022 — I’m sorry, 2024, you’ll see more and hear more about implementations and expansion of the technology to allow WiSA E to be on phones or tablets as well as the TV reaching all audio devices. So we’re excited about the response over the first 90 days. There are companies that are starting to design with the WiSA E module. We think it materially impacts our 2024. We think there’s quite a bit of use cases that will be demonstrated and announced both at CES and in 2024. There will be TV partnerships, speaker partnerships and strategic partnering as we go through the first half of next year.

So finally, this slide if you’ve watched us is very similar. But look, we have a very strong IP position. We have WiSA E complete enable. We can talk to and engage customers at every level, whether it’s the low-cost 2.4 solution, DS, whether it’s the embedded solution and direct implementation, we’ve got an established speaker association that is unparalleled in the industry, and there’s 30-plus brands that have designed and used WiSA technology historically that really is partly driving why we’ve had so many meetings quickly. We’re not launching WiSA E into a vacuum as a new company. We’ve launched WiSA E in three different flavors, three different cost points into an established customer base of WiSA. And with that, operator, I’d like to open up the call to questions.

Operator: [Operator Instructions] And we have a question coming from Jack Vander Aarde from Maxim Group. Jack, please go ahead.

Jack Vander Aarde: Thank you. Good morning, Brett. Thanks for the update. Good to hear WiSA E, new product launches on track. I have a couple of questions on financials, obviously, but — and on the outlook. Let me start on the WiSA E and some of the stats you discussed. Just to try to understand things a little better. Okay. So you have 60-plus meetings for the WiSA E so far across 30-plus companies. And I’m going to zero-in-on the seven display brands that are reviewing licensing agreements. Can you maybe — just to start explaining at a high level what the licensing agreement process kind of is or whatever you think — however you think it might play out? How many stages are involved? What’s kind of the timing of this? And then what does it mean from a potential revenue and revenue ramp perspective? Thank you.

Brett Moyer: Okay. So let’s go one level higher, Jack, to the 13 and the TV display companies we’ve talked to. So this really has covered all the primary TV companies, whether they’re Chinese, Taiwanese, Korean, Japanese brands. We’ve covered them all. The licensing program in terms of a process, first, we have the demo, offer the program. The program is specifically driven around WiSA interoperability. So if you’re willing to transmit a WiSA E interoperable signal, then we are offering a free license to the TV display companies. If you’re not willing and you want to use our technology to only transmit to your brand, then there’s a pricing discussion around that because as our mission has been historically, is to build a global interoperable brand that works both with audio and display devices.