$WISA Winning From The Small Cap Frenzy
With beaten down small cap stocks gaining momentum lately, WiSA Technologies, Inc. (NASDAQ: WISA) is emerging as a top candidate to become the next runner in the coming weeks. Focused on wireless audio technologies, WISA develops and sells spatial audio wireless technologies for smart devices and home entertainment systems to a number of leading electronics companies. While the company is considered to be a pioneer in its industry, WISA has been on a major downward trend over the past months in light of its poor financial performance. Recently, WISA stock dropped to new all-time lows after announcing a $7.6 million offering. Considering the growing interest in such small cap stocks, WISA stock could be poised to surge in the near term as it continues gaining momentum.
WISA Fundamentals
Specializing in the development of high quality audio technologies, WISA delivers its advanced technologies to the most renowned brands in the audio and consumer electronics markets. With this in mind, WISA has a unique IP of advanced technologies enabling it to offer high-bitrate, multichannel, and uncompressed wireless audio. In light of this, WISA is partnered with a number of global leaders in the audio and consumer electronics markets including LG, JBL, Enclave, and Savant.
WiSA Association
As the company’s technologies could be easily integrated within other companies’ products, WISA formed its own consortium – WiSA Association – which includes more than 70 leading consumer electronics companies, technology providers, retailers, and industry partners. Through this association, WISA is able to work with other members on developing, testing, and ensuring the compliance of its technologies. At the same time, the association allows WISA to open new online stores such as the company’s Amazon store. Considering the major potential of this association, WISA’s new technologies could set the company up for substantial financial growth in the future – making WISA stock one to watch at its current low PPS.
Technologies
On that note, WISA’s technologies include its proprietary WiSA HT proprietary wireless audio module which is aimed to penetrate the home theater market. Since this technology has been successful, WISA has been working on another technology – WiSA DS – that provides high audio quality that could run on low-cost 3rd party 2.4 gigahertz IoT chips. At the same time, WISA is looking to move this technology into a 5 gigahertz solution to add more features and reduce latency which would make this technology more attractive for licensing opportunities. Currently, WiSA DS is available for soundbars only, however, this technology is set to be integrated with smart TVs in 2023 which could have a major impact on WISA’s revenues in the coming years.
Meanwhile, investors are anticipating the launch of WISA’s newest technology – WiSA E – which is targeted towards HDTV platforms and speaker manufacturers. With this in mind, WISA recently launched a licensing program for WiSA E to capitalize on the growing demand for improved audio experiences by consumers. Considering WISA’s other audio technologies, the company is now able to provide affordable and interoperable audio products which provides the company with a total addressable market (TAM) of more than a billion. In this way, WISA could be well-positioned for financial growth once all of its technologies are available to consumers.
With the view of launching this technology in 2023, WISA is currently porting WiSA E to Amlogic’s low-cost HDTV platform while also working with other IoT chip manufacturers like Realtek and Espressif. Through WiSA E, smart TVs and speakers would be able to offer multi-channel high quality audio at a much lower cost than other available technologies. Currently, WiSA E is in the sampling process with select beta customers and the company has begun licensing negotiations with several parties in the US, Asia, and India. In light of this technology’s potential, WISA stock could be poised to soar upon the launch of WiSA E.
Exploring New Opportunities
Despite the company’s promising audio technologies, WISA has been suffering from declining revenues and widening losses over the past quarters. For that reason, WISA engaged AQ Technology Partners to help the company explore opportunities that could improve the company’s future prospects. With this in mind, the company is currently evaluating a number of opportunities involving its IP and licensable software to raise capital including sale of some or all of its assets, acquisition, merger, business combination, partnership, JV, or licensing.
These efforts could prove to hold value to WISA’s shareholders as the company already executed 4 NDAs in consideration of a potential transaction. While the company intends to only release updates on that matter upon the completion of its evaluation, WISA stock could be an opportunity at its current PPS in anticipation of a transaction to materialize.
Capital Raising
Given the company’s financial woes, WISA recently closed a $7.6 million offering where the company issued 50.4 million units in addition to 3.6 million pre-funded units at $.14 per share. Each unit issued by the company contained a share, a series A warrant, and a series B warrant that could be executed at $.14 per share. As a result of this major dilution of shareholders’ value, WISA stock dropped 40% to new all-time lows. Despite this, WISA’s drop coincided with the growing interest in beaten down small cap stocks that was fueled by the parabolic run of Cosmos Holdings Inc. (NASDAQ: COSM). In light of this, WISA stock could be one to watch closely over the coming weeks in case it has a similar run.
Potential Delisting
However, investors should be wary that WISA is facing the risk of delisting from the NASDAQ for not meeting the minimum bid price requirement for listing on the NASDAQ. With this in mind, WISA has until December 20 to regain compliance with NASDAQ rules either by maintaining a closing price of more than $1 for 10 consecutive business days or by effecting a reverse split. For that reason, WISA stock could be poised to run in the lead up to the NASDAQ’s deadline considering investors’ increasing interest in the company.
WISA Financials
According to its Q3 report, WISA has $11.5 million in assets compared to $19.3 million at the beginning of the year. At the same time, the company’s liabilities more than doubled from $3 million to $6.2 million over the same period. Meanwhile, WISA witnessed a steep decline in revenues YOY as it reported $937 thousand compared to $1.8 million in Q3 2021. Moreover, operating costs increased from $3.4 million a year ago to $4.8 million. Based on this, WISA’s net loss widened to $4.6 million compared to $2 million in the same-year-ago-period.
Technical Analysis
WISA stock is currently trading at $.1202 and has a support at .1076 with resistances near .1292, .1651, and .2220. After dropping to a new all-time low upon announcing its latest offering, WISA has been gaining momentum in sympathy with other small cap stocks fueled by COSM stock’s parabolic run. With this in mind, WISA has substantial potential to climb in the near term as the company is looking to regain compliance with the NASDAQ listing rules by December 20. While the stock’s chances to run past $1 appear to be slim, WISA has a gap to fill near $.165 which gives the stock an upside potential of 37% in the near term. Considering the high trading volume the stock is witnessing lately, starting a position at the current PPS could prove to be a profitable investment.
Accumulation is currently trending upwards due to investors’ confidence in WISA’s potential to run in the near term and the MACD is bullish. Meanwhile, the RSI is holding at 44 which leaves enough room for the stock to run if it continues to witness high trading volume. As for its share structure, WISA has an OS of 67.5 million and a float of 66.4 million.
WISA Forecast
Despite the company’s poor financial performance, WISA stock could be an opportunity in the short-term given the market sentiment following beaten down small cap stocks. With the company exploring opportunities for acquisition, merger, or a buyout, WISA stock could soar on any news regarding this endeavor. Meanwhile, the stock could be poised for a run upon the launch of its WiSA E technology. However, since the company is facing the risk of being delisted from the NASDAQ in the coming weeks, investors should consider this risk before entering a long position in WISA stock.
WISA Fundamentals
Specializing in the development of high quality audio technologies, WISA delivers its advanced technologies to the most renowned brands in the audio and consumer electronics markets. With this in mind, WISA has a unique IP of advanced technologies enabling it to offer high-bitrate, multichannel, and uncompressed wireless audio. In light of this, WISA is partnered with a number of global leaders in the audio and consumer electronics markets including LG, JBL, Enclave, and Savant.
WiSA Association
As the company’s technologies could be easily integrated within other companies’ products, WISA formed its own consortium – WiSA Association – which includes more than 70 leading consumer electronics companies, technology providers, retailers, and industry partners. Through this association, WISA is able to work with other members on developing, testing, and ensuring the compliance of its technologies. At the same time, the association allows WISA to open new online stores such as the company’s Amazon store. Considering the major potential of this association, WISA’s new technologies could set the company up for substantial financial growth in the future – making WISA stock one to watch at its current low PPS.
Technologies
On that note, WISA’s technologies include its proprietary WiSA HT proprietary wireless audio module which is aimed to penetrate the home theater market. Since this technology has been successful, WISA has been working on another technology – WiSA DS – that provides high audio quality that could run on low-cost 3rd party 2.4 gigahertz IoT chips. At the same time, WISA is looking to move this technology into a 5 gigahertz solution to add more features and reduce latency which would make this technology more attractive for licensing opportunities. Currently, WiSA DS is available for soundbars only, however, this technology is set to be integrated with smart TVs in 2023 which could have a major impact on WISA’s revenues in the coming years.
Meanwhile, investors are anticipating the launch of WISA’s newest technology – WiSA E – which is targeted towards HDTV platforms and speaker manufacturers. With this in mind, WISA recently launched a licensing program for WiSA E to capitalize on the growing demand for improved audio experiences by consumers. Considering WISA’s other audio technologies, the company is now able to provide affordable and interoperable audio products which provides the company with a total addressable market (TAM) of more than a billion. In this way, WISA could be well-positioned for financial growth once all of its technologies are available to consumers.
With the view of launching this technology in 2023, WISA is currently porting WiSA E to Amlogic’s low-cost HDTV platform while also working with other IoT chip manufacturers like Realtek and Espressif. Through WiSA E, smart TVs and speakers would be able to offer multi-channel high quality audio at a much lower cost than other available technologies. Currently, WiSA E is in the sampling process with select beta customers and the company has begun licensing negotiations with several parties in the US, Asia, and India. In light of this technology’s potential, WISA stock could be poised to soar upon the launch of WiSA E.
Exploring New Opportunities
Despite the company’s promising audio technologies, WISA has been suffering from declining revenues and widening losses over the past quarters. For that reason, WISA engaged AQ Technology Partners to help the company explore opportunities that could improve the company’s future prospects. With this in mind, the company is currently evaluating a number of opportunities involving its IP and licensable software to raise capital including sale of some or all of its assets, acquisition, merger, business combination, partnership, JV, or licensing.
These efforts could prove to hold value to WISA’s shareholders as the company already executed 4 NDAs in consideration of a potential transaction. While the company intends to only release updates on that matter upon the completion of its evaluation, WISA stock could be an opportunity at its current PPS in anticipation of a transaction to materialize.
Capital Raising
Given the company’s financial woes, WISA recently closed a $7.6 million offering where the company issued 50.4 million units in addition to 3.6 million pre-funded units at $.14 per share. Each unit issued by the company contained a share, a series A warrant, and a series B warrant that could be executed at $.14 per share. As a result of this major dilution of shareholders’ value, WISA stock dropped 40% to new all-time lows. Despite this, WISA’s drop coincided with the growing interest in beaten down small cap stocks that was fueled by the parabolic run of Cosmos Holdings Inc. (NASDAQ: COSM). In light of this, WISA stock could be one to watch closely over the coming weeks in case it has a similar run.
Potential Delisting
However, investors should be wary that WISA is facing the risk of delisting from the NASDAQ for not meeting the minimum bid price requirement for listing on the NASDAQ. With this in mind, WISA has until December 20 to regain compliance with NASDAQ rules either by maintaining a closing price of more than $1 for 10 consecutive business days or by effecting a reverse split. For that reason, WISA stock could be poised to run in the lead up to the NASDAQ’s deadline considering investors’ increasing interest in the company.
WISA Financials
According to its Q3 report, WISA has $11.5 million in assets compared to $19.3 million at the beginning of the year. At the same time, the company’s liabilities more than doubled from $3 million to $6.2 million over the same period. Meanwhile, WISA witnessed a steep decline in revenues YOY as it reported $937 thousand compared to $1.8 million in Q3 2021. Moreover, operating costs increased from $3.4 million a year ago to $4.8 million. Based on this, WISA’s net loss widened to $4.6 million compared to $2 million in the same-year-ago-period.
Technical Analysis
WISA stock is currently trading at $.1202 and has a support at .1076 with resistances near .1292, .1651, and .2220. After dropping to a new all-time low upon announcing its latest offering, WISA has been gaining momentum in sympathy with other small cap stocks fueled by COSM stock’s parabolic run. With this in mind, WISA has substantial potential to climb in the near term as the company is looking to regain compliance with the NASDAQ listing rules by December 20. While the stock’s chances to run past $1 appear to be slim, WISA has a gap to fill near $.165 which gives the stock an upside potential of 37% in the near term. Considering the high trading volume the stock is witnessing lately, starting a position at the current PPS could prove to be a profitable investment.
Accumulation is currently trending upwards due to investors’ confidence in WISA’s potential to run in the near term and the MACD is bullish. Meanwhile, the RSI is holding at 44 which leaves enough room for the stock to run if it continues to witness high trading volume. As for its share structure, WISA has an OS of 67.5 million and a float of 66.4 million.
WISA Forecast
Despite the company’s poor financial performance, WISA stock could be an opportunity in the short-term given the market sentiment following beaten down small cap stocks. With the company exploring opportunities for acquisition, merger, or a buyout, WISA stock could soar on any news regarding this endeavor. Meanwhile, the stock could be poised for a run upon the launch of its WiSA E technology. However, since the company is facing the risk of being delisted from the NASDAQ in the coming weeks, investors should consider this risk before entering a long position in WISA stock.