What's Going On With WiSA Technologies Shares Thursday?

Benzinga ·  Apr 18 23:43

WiSA Technologies, Inc. (NASDAQ:WISA) shares are slumping Thursday.

The company inked a WiSA E licensing agreement with a top-three consumer electronics leader in their category.

By licensing WiSA E software and integrating its multichannel immersive audio functionality into their source devices, the licensee can avoid the expense of extra hardware.

"WiSA E will be used by a major CE manufacturer to embed high-quality immersive audio functionality in their devices – functionality that can be activated by the consumer in their home," said Brett Moyer, CEO of WiSA Technologies.

End users can activate the embedded audio feature by purchasing compatible speakers, offering WiSA a new revenue stream through consumer-based activation.

Per the agreement, the company's licensing revenue will comprise royalties on its transmitting (TX) software, linked to user activation of WiSA's embedded immersive audio functionality.

This model empowers manufacturers to economically incorporate audio-rich features, potentially generating aftermarket revenue from external speaker sales.

Devices resulting from this agreement are anticipated to hit the market by the latter half of 2024.

Earlier this month, the company's unit WiSA Association executed its fourth 5-year WiSA E licensing agreement with a fourth major HDTV/PTV (Projection TV) brand.

The WiSA E license allows the brand to integrate WiSA E software into its products, thereby offering consumers wireless immersive audio options, including interoperability with any of the WiSA E-enabled speakers offered by the many WiSA Association speaker brands.

Following a 1-for-150 reverse split, the company's common stock began trading on the Nasdaq Capital Market on a split-adjusted basis at the start of trading on April 15, 2024.

Price Action: WISA shares are trading lower by 33.4% to $6.17 on the last check Thursday.

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