WISA - Earnings call transcript Q2 2022

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David Barnard

Welcome to the WiSA Technologies’s Second Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mod. A brief Q&A session will follow the formal Presentation.

As a reminder the conference call is being recorded. With us today are Brett Moyer, CEO and President; and CFO, George Oliva.

Securities over presentation I the of contains Section of call remind like meaning the the as XX-A today’s XXXX, of everyone Forward-Looking the amended. Securities turning Exchange to Section XXXX would Brett, to of amended Act Before in of as XX-E Act Statements within Readers are undue place to reliance on cautioned not these Forward-Looking Statements. and time-to-time the end filings Exchange in including competition, risks our December on including the described motivate rate XXXX, and of macroeconomic Company’s Form from with materially from the COVID-XX employees, inability regulatory customers to Forward-Looking any hire, the demand XX, associated for ended secure financial entering retain a other XX-K filed the disruptions conditions Factors result associated reports revised adequate these future potential existing business, our in the those the Statements on ability Risk of from Company’s wins, ability Securities ability demand for the of timing our revenue affecting resulting SEC material Commission, impacting subsequently competition, current and by and to differ risks XX-Q. year production those growth, in indicated filed updated any may pandemic, uncertainties results predict markets Form economy to legal predict to of and for annual detailed developments, effects products the report customer uncertainties measure Actual technological, and with the predict manufacturing wins in changes and from on design and future including the consumer quarterly and supply pandemic as described drivers, as developments our design capacity, COVID-XX or chain the price to the and with other with markets, so by is to as unless law. date do this of no obligations hereof in update Company required the The undertakes to the information presentation and that, call over to With the I Brett. turn will ahead, Go Brett.

Brett Moyer

discuss in And beyond HDMI these update. the vision anticipated and gentlemen, directly executives year, our you, we QX and the company David. can WiSA’s I in our market file partnerships former the the investments, to market for the this QX ladies that consumer solutions strategic George market. and our solutions Today, will broad The strategic electronic technology audio to consumer. the primary investments patent with expanding size in niche hiring you, and for R&D filings, now industry, that to Last market the of the technology build segment the addition a work why Thank ramp. dominate, with were thank effort reach the to expand undertaken for role each and the expands that we results, joining retailers initiated roadmap revenue included opportunity,

of now. both and give some and WiFi even partnership expressive we a at sound. like chip chips has is enormous there sound why DTS, versus useful lower multichannel three-dimensional work about become have by you significantly that can can that on There point IoT the have you that cost, is faster in So When become evolved, algorithms. of codecs chips Dolby think where release wireless the Atmos a the with spatial industry

we it content, everywhere are concert audio a when you case, when at video. Yet, last is when same content when the are you not just half are that we you symphony, theater, COVID stadium, sound that watching as is or a a the in are is from As not the being our in device. experience, in It all the every saw in streamed prevalent. two-years is

the consumer. TVs, here to is of content, the how leg Xk. the is, And of gone display look then that out Xk, have the rest the audio got to meaningful they the market. at Xk, technology third running do we So They bring when Xk, we are you

to So, P&L. and continue to your as audio how You build synchronize do to integrate audio you business solutions manufacturer? grow your a your TV TV

So opportunity for WiSA factors great spatial think Technologies. create three audio those a for we and

do space, transport. we are but guys, not we not where content and WiFi we not are Now the fit are the that codecs, in the are guys media we because we the

knows in speakers, engineering lot low, keep what is team So to a work a of make congested sure WiFi heavily the space. a do our latency synchronize in how we

So legs from device three to the smart role that support this the our we get the turn the tool. audio of is other from to speaker. And

tracked with Most technology successful been have our us. launch. original have We of you

So audio guys you in the The speaker highest but the seen industry. these companies these brands, really are brands are in the world. audio premium have of performing some the

moved organization bit. have certification originally developed in WiSA a WiSA broad this little consumer will from organization, we test launch to we a reaching reputation we IP So with Number we endeavor. one, to that take organization, great about new extended a and a the the developed which a association talk HT,

launching a as a solution, performance. which with IP. latency, following lets then that, And and IP reduce gigahertz license that more called we will as X.X working with us in add X-gigahertz the DS our move that and it DS first are the features high We are now we take WiSA product well to is IP on

DS technologies, coming licensing speak WiSA -- IP three devices. bars and two and year. integration, for speakers this WiSA HT, ship TV smart next one third and other existing, and E one for So WiSA sound all start year,

company probably module WiSA sound for today. those market all And we So you being mid-range is solution to a look to only when bars, for cost we is is at a and for are going the smart a premium We are devices is and XX, expensive, points. offer WiSA XX, that TAM over middle. this customers most WiSA XX in E. able have cost to showed solutions DS low with And that you refresher, for you the a size. less slide market from look last at market, right the we audio only a to the that just E of whole breadth our million is file price DS company hundred but HT increases with is the XX%, solution million WiSA to billion than the dramatically XX%, span this able time, size, When and the WiSA HT parallels are several the

the market. the of goes complete able are or way objective module, feature the hand, is, So a And cost to IP whether that matter up lower what licensing chart no need we left right. the you all from whole to handle your

the and TVs set now of take from which amazon.com/wisa. what expand in That retailers or we have last WiSA that last and a we the or the think you talked by five I dramatically we five, expect for it to get of speakers a retailers up do WiSA when the is them. certified that another aggregating role they three WiSA, terms year. How request store? stores announce we was momentum we to have this materially, WiSA, has And can WiSA XX-months, first the six do certified time last expected was swing they And big about expanded and to did one inbound So year retailer? that Today, WiSA and asking, how in become are a requirements?

complete one to solution the consumer. WiSA that looks So like

the a us three relatively result as as well is is are traffic a grow leaving to changing what of now With change that last And buying they will saw with you to and three consumer as our marketing increase both the web marketing, consumer This in our guidance. cave. demand, COVID from We are That year. two that our two through than between people consumers previous year patterns lower WiSA. customers saw and nothing we million that million million.

of actually is for speakers, a connect winner WiSA retailer product Home design industry WiSA be Smart Smart will has with there responded will thinking will season. QX was the And then the finally So great product to safety speaker fall their out WiSA are be HT and we back the and TV. house the they SoundSend. SoundSend, standards. invest consumer knowing support provides vacations, When that restaurants XXXX Excellence. of a launch SoundSend. a from the to continue and you trips, and their from do winter. QX did from shifted people to about launch and the that fall And to their come more so they back know the guys some below and what there eating any as back dollars of including into will come There speakers industry, the awards E and see in first that come the selling WiSA The marketing to SoundSend the we we for the And that can for critical back interoperable

rear So has is one new speakers. It offer we on that and the space DS for can but a wireless a do can people primary that trans has this substantially in bar this more rear WiSA bar either up wireless to channels competitor well a the new cheaper. and as in WiSA sub DS sound congested dominates speakers comparing that stronger speakers firing information and slide, sound or woofer the the as sub-woofer. call, joining performance

all us we strongly. positions three So of that think

already to one product companies COVID has our companies XX they sound TVs generated possible Asia, of three and in that to the going and a on launched bars, the for we has companies March. for company particular integration And Now auto focused focused between ability this through feature cycle. have out testing is aftermarket. that launching X.X.X the team capability break go testing our evaluation on eight into but are Asian hampered integrating

year. We of production QX will expect in this go into least these at two

systems, over So WiSA HT, how you modules next XXXX, gen have at E does WiSA modules, all and the technology in you all have have this the So year. you start we speaker WiSA market evolve you DS if one time?

company, be to in well E to E the prove E to we the just sound consumer in in set. but Not there and that? home will are the and year getting late safe WiSA to WiSA potential that with is and WiSA retail of perform And technology with a well platinum market we customers speakers again, Now adopt. launch a the the a perform we speaker will into be purpose what

blue IP you of issued now change And do at of knows performing in we our continuously the developing from is in XX-months grow in position ramp and we engineering start we latency, the as it Speakers the and have HT last investment of over WiSA team space, team to is six, terms got color. about, next to continue an year a consumers technology has to the a this viable been WiSA DS WiSA or repair. and WiFi a down result From and of throughout with review well next starts in and have benefit the patent will prove XX audio process three all the working our E, it. and have years. the to terms an XXXX from or slowly congested this it next XX-years that WiSA position So build design engineering have WiSA new fundamentally fabulous will modules filings. effort G-XWiSA And will again, builds start sync QX the the strong a will at modules is handle and or that That and then XXXX. four of DS is product our revenue year through E. E think how in done in holdings, build

excited performance that measures as competition. against We it at are really

now our over turn George to the the to presentation I like would CFO. So slides,

George Oliva

ending same QX down quarter it were previous the in The XX% XXX,XXX, sequentially QX.The Brett. from year, X.X margin XX% to as despite in prior part to revenues from loss for the the in is charge efforts XX due down points you, gross lower $X.X but Thank a cash Brett was discussed. to in was up was took million, for million from in previous The last million year. approximately prior OpEx converting non-cash the quarter increase was million. in XX% expense X.X previous a with sequentially QX. non-cash The year stock was primarily due we our large The of million X.X relation XXXK engineering in to from expenses expenses. but loss the expenses, million quarter year X.X has were year common. the the in from preferred compared of year Operating The a to non-cash larger the compared to up half including XX% OpEx

compared to In QX sequentially of to terms for of in QX. expect compared rest the continue we and guidance revenue additionally the year, QX QX increased to in to increase

As to module with XXXX. volumes increase morning million three we revenue, improve the hand, the to combination inventories sufficient financing decreasing execution be in that the our into increasing cash fund then should continue the and margin on this And mid-XXs. should announced into with

As of is we mentioned, a that our includes warrants with it. net $X, to largest shareholder convertible are on a for two funding $X. signed three Brett. that I at it approximately agreement we over that million definitive warrants at turn priced And And notes. will a million

Brett Moyer

Thank you, George.

generating contacts on to which So summary, in significant strong opened IP out got Q&A, premium we think continued in role David, has sets would expanded are has we the put up launching for for position up high like to the have some inbound proven performance that from that start in next expressive investors questions, WiSA very with QX. in And and to the shift retailers, we and with before its IP questions. bring it to team we starting a skills to that years. rapidly is brands, open competency four module has a will that that and been go growth its which the all be will I we of technical a that audio

David Barnard

Thanks, Great. Brett.

Q&A the We conducting be and okay? here proceed. will that will our we question take [Operator Now session. Is Instructions] first

Operator

you ask question Okay. can Go And now. ahead. your

Jack Vander

quick doing How Appreciate Actually, question. throw here Okay. Vander Great. I question the from the from Jack are speaking update. Maxim analysts Group. for a will Brett. you today? housekeeping

release What guys do the expect the Just financial full in statements to you one. XX-Q? quick a

Brett Moyer

Probably close very guess. wait We to might till I be an regardless have required Today wait. within hour, might -. soon market. to We the

Jack Vander

there. Yes. No worries Appreciate it there.

it revenue expecting we are Then like quarter growth sequential in growth then Okay. the quarter. in Brent, guide, now fourth for the the as and maybe looks third sequential

there revenue any the additional any an top-line thoughts Just XXXX? provide additional maybe you can on for then color and potential overall

Brett Moyer

Okay.

you we other, saw So consumer that reported our report shifted it calls. seen April. what consume association the out shifted have do we internal of in WiSA that see and earnings the other I tracking see at a in to think lasted out we end probably But the in through demand since own

think coming (Ph) we been our in followed So orders that out as has from in [Sono’s] in reported as case. up well partners

of get But turns the get see the desire that we demand until around back back. So the ourselves the conservative are being house. just we that fall. come in being consumers, more we consumer that We think hell out

So we see sequentially growing revenue.

yet just We are not forecasting how that impacts full-year. the

is What - XXXX that? For

Jack Vander

And there. XXXX now then. Understood move on to

Brett Moyer

expecting in, are a coming into speakers, So knocks probably we XXXX, of dollars WiSA coming MSRP. year strong between off E in, rolled hundred E DS a WiSA

dollars a hundred So in buying inflation, sell consumer dollars world is of hundred conversions higher the everything. Every through. is and

of have use. that, are strong WiSA them DS. words, against has is up point in So this feedback solution. last It couple the we of year XXXX think reference positive, extremely year. grinding a performance up XX a their for we want GHz think you X.X to against Whatever shockingly companies first been and gotten we And those out really

revenue that a we next rolls So that as year think XXXX, driver. into is in strong

Jack Vander

And that Great. yes, actually just then, point, clarity. just for to

the quarter? WiSA end shipping. WiSA is This year? shipping shipped, of when for going a XXXX, a to So year that And is Is be DS this when during will specific there that is it there is then timeline exactly. the particular E

Brett Moyer

customers of with with I bandwidth and will will five are misspoke evaluate, talking them, sampling just them, four or that QX E to on depending to our so or so my like year, and presentation, is DS. Yes, test we in four this to select five work on in there we we we start WiSA actually did E WiSA beta

we two into - companies production, or have which that just generate with So shipping E of expect to QX. and maturity, four to five WiSA have in WiSA test are we but won’t revenue, are terms - to will during beta will we and shippable up have customers modules, we in technology go Well, that means companies with two bang those DS planning QX. that

Jack Vander

launch. with WiSA the be would customers That commercial product two DS? those a be for official an in quarter fourth would ready That

Brett Moyer

Yes.

Jack Vander

see. update I’m with I Okay, balance about provide heard your not because expect you then How how into inventory customers, two levels I’m great. it, with you waiting sure maybe or missed this your And move inventory their on then, but then back And your can inventory going end for your levels sheet. you let’s the or to update after have an currently? situation? And the anything just year? any

Brett Moyer

inventory take Yes. George, want the piece? to you

George Oliva

saw flat relatively we Our inventory was second QX, from QX, increase. quarter but an

customers we our also are out. having out, have orders to our rescheduled vendors As reschedule

can purchases to come of talk that. see half We you year. I don’t the lot So, defer really the to customer’s don’t to the of down extent next a can that inventory of start we know to visibility Brett, inventory. should our the in second our excess year. We have

Brett Moyer

We not. do

we coming do, is consumer around say of So, is channel. feedback channel to the in I there the the that in promotions but going be fall healthy side are the we electronics. and will the discounting retailer from

our a large the somewhat, now customers circumvent in customers the consumers for part demand good opportunity and promotional as us temporarily to we now part we believe we these to leaves logistics product, or putting shifted but still of fall. consumer And to discounts part builds Europe that manufactured have four challenge, has five largely, that demand least POs getting abated in or think out at as stuff of for try have are Asia that shortages. for all chasing America North of shortages that So shift, customers. our have that out cause Logistic shortage been issues to into challenges impacting see seem months,

Jack Vander

there. update. I color guys, you, Helpful appreciate Thank you, George. Brett. Okay. Well Thank the

George Oliva

And of will just the the filed your close confirm to queue, be the question queue about market. at

Jack Vander

much, you Thank very Excellent. George.

David Barnard

Okay.

go caller it number is in let’s on, to, ending Moving XXXX.

I think to un-mute want line, that do Kevin, six. dial is you your star

Kevin Dede

Hi Dede me Wainwright. here, Can Brett. Kevin George. okay. you H.C. hear Hi

Brett Moyer

Yes. Good morning, Kevin.

Kevin Dede

the Thanks thanks for little the on me with for touched you and call bit, this a so on having the Brett. help Alright, handling call.

hoping source. COVID more sort pretty little a just given about are testy on that, I of to China, It me on manufacturing an you I a that. to doesn’t guess in color in you more that curious a environment was touched seeing issue. I little add wanted the restrictions. abatement You the confirm could seem

Brett Moyer

Well, of terms so here and is being know, lines. us it it of most really is in product to send, China COVID nasty, to you there where able know, executives impacts vision senior show the you to, the from

So we know shortage, out We there We part get on China. still from a in country. part is can’t have people of depend to we in or sporadic shortages.

question, that stuff logistically, our but And of is gets some there know, So impacting flowing. built no you is is customers. once

Kevin Dede

Great. Yes.

I of seemed is guess getting trend, going. people meet built able to to So are mean, the that that in orders, your I kind where I at strengthening and are be see which customers issue that you was least see earlier things year. an

Brett Moyer

around pushed we whether Yes. orders pushing, are because so people push is out up orders, you is consumer demand, know, we We customers mean, have think seen think out right. frees now inventory it it I

So Board. our have we an ODM do in on we from, don’t, China know we

XX XX%, but to in still part to So shortages would probably has know back gone I is the normal. there the say we space, industry do

Kevin Dede

Okay. hear. to Good

Right. return count you a guess remarked screen your in increased TVs. performance pixel limited that brands, So large and I I during on presentation guess on

and you wondering I’m exploit much try mentioned going you sound boost just they And correct. of I’m to just an as know, real experience yes. you do to avenue like, how evidence that? are so have you wondering the that margin think to the,

Brett Moyer

couple two a there been brands is that doing Well, is years. and have One Visio it, is for Samsung. one

number have flawlessly. want very they at two, look to say seen together, they number say WiSA of heavily are work retailers the heavily that we want through I a association and merchandising their are But don’t at if merchandised So to and I well do you one. product Number lines bundles. are integrated they they with as retail,

bundle can a or enclave you you or Now can soundbar bundle plat.

So And soundbars. them seeing brands at the again, actively launching DS see it, you if here step eight it the if WiSA it. into are that one of the digging the looking then it, out take cycle, of further are XX in for will we are back retailers companies are

Kevin Dede

Okay.

So mean it soundbar does television XD packaged with an sale? like, is that the point at merchandising the the with or of comes TV,

Brett Moyer

and consumer important the on is it will TV, it But the issue. that, a find with it turn you little nuance will

So our right. play, is that

WiSA been So every WiSA room. has why into TV? mean, for a one is every doing your module would It finds WiSA their speaker us is DS you There B&Os XX-years. this integrate I of with what in TVs. that inside

resonates creates our position, sale. having with link the one for their is in this think TV their we that, opportunity to an the standard audio to integration So and interoperable to wireless which TV speaker brand TV

Kevin Dede

Okay. have But their the be audio doesn’t brand. of to

Brett Moyer

It does not.

Kevin Dede

is it. of Right. the That beauty

Okay.

Brett Moyer

Right.

Kevin Dede

-. some about talked You

Brett Moyer

Go ahead.

Kevin Dede

No. I’m interrupted. sorry. I

Brett Moyer

a No. around just Isn’t TVs. to beauty from Merchandising know, with the their you $X,XXX Skyworth LG. are merchandise consumer of But brands, less I audio say everybody pick flexibility their or that going it. system they audio having to wise wants their Merchandising, TV. is going interoperability exactly. any that was

Someone $XX,XXX around B&O their TV situation. like a

Kevin Dede

Okay.

first as about other your was just Amazon you sort of Can would know location, there that talk mean, I mentioned expect I -. retail one name brand. you You and did you

Brett Moyer

stores. For

Kevin Dede

home mentioned the your spend right five just talk about you hoping to yes, confidence and on I three that stores, back consumers Yes the of that in online. marketing conjunction, as coming kind in to experience. more will you could come spend, believe for was you maybe

Brett Moyer

Great.

stores or right that is right one two There Waltz. Electronic Beach, elude me Amazon now, Express, So are the now.

Kevin Dede

I correctly. with that There keep R going. I’m was Brett if sorry an remember began one

Brett Moyer

their year And three make Electronic Express end Focus, six. desire. expressed waltz, That to Amazon. we be think have five Beach, there handful, is would by so it and that then will a

selling and are are Some or WiSA. merchandising some will just speakers platin

other certified SoundSend hope hi and be you brands. There for will had we compatible. So being

brands other certify expect We that. to

importance a storefront So aggregates that bigger WiSA place retail more have a that one builds consumer. for products at in and a the base to all

So to with why hopefully case, do pressure But be incredible back? price back think don’t think a there. demand inflation. none going us of you COVID under I into I consumer comes consumers want are

think you the of the mentality about consumer. just If

You trips you audio you got to done to to around back of your in, the promotions but have have trying fall. I QX. if come going how align From the make a out And budget good an to up consumer surge figure are think have well demand side, this, family in there buying. until be and TVs really production, inventory and will

the a on day. look, And we So But audio marketing? will yes, is track single we depend more around still the house less get see. the consumer, the it. do every we I of psychology, mean, on moment. without lot It out there I spend it literally the at is think, or TVs results

Kevin Dede

noticed the your you speak Can -. seeing fell that the considerably Wave to like the off figures that mean, results of they I March you on June Right. quarter WiSA are I Amazon? from look

Brett Moyer

QX. after April. spend the a expense down down. saw drop We QX. took took the sorry I’m in We in marketing right We

we spend looked the changed. May results, pattern the when So at consumer

And afterwards? look bit. What quite do a is our Now which it that But that coming WiSA, a is they where metric. into sale, a into changed when is at platin go is super conversion we consumers small?

into enclave, product, to So drive you LGTV know, whether it whatever WiSA any if good buy not to it consumers ecosystem doesn’t to the are they or ready buy. us an do is

After the money school dropped to the September have QX. we of dropped start the summer after virus. go hopefully and down QX football cold So, We to and of back full-year we And guidance. the on shifted spending plan no December. most through with our fall, in vacation kids

Kevin Dede

Right.

Just monkeypox.

question Brett then other demand? Again, kind comes the see meet I apologize. on up to you able The WiSA connected do manufacturing of customers

kind just see in going are as manufacturing China. back to it You you of

Brett Moyer

would parking, but still say our But of meet there, the bit. problem out dropped been. shortages specific, be going can are Well, and quite part I are XX% complexity never reason that a side demand meet There the now. ball from they SKU of there have is no the is SKU to certainly demand has that couldn’t but

Kevin Dede

of then Could or September, you timeline in the to demand sort got manufacturing now the be through December timeframe order walk in in just me to soon? products meet

Brett Moyer

in late into which this be running a manufacturing, and and port. Has time October. the a other logistics are currently out both If they well, in are of Correct. Harbor into to port

You latest producing QX have to be October.

QX, We don’t visibility. We our further have demand therefore, because pipe. have the visibility Pos right. rescheduled they Should get of down that of in

now We to build think to have visibility customers to what because they now. our got they want do now

Kevin Dede

Right.

thanks answering Yes, taking me it. Okay. for other no, Brett, appreciate questions, that and really through the

Brett Moyer

Kevin. Thanks Yes.

David Barnard

Great.

a in - more don’t queued ending have caller with XXXX. We couple questions Why up. we go to it is a

unmute, go, we your please ahead. could unmute line we dialing six, go star there If could you

Unidentified Analyst

morning, you I you, good questions Brett. a for few guys, Well have

question announced that? why that. do I why Can So you you don’t my this financing did us did that is understand today. Convertible you first security to of type explain you

Brett Moyer

sheet partnerships or make using our sure our of, prices. the but to we Yes, in want we through the preference is know, you strengthened have balance strategic at the wanted We ATM. didn’t was end, year financing general an these the through dilution moment so SX said at for

XX-months, opportunity the us market effort So assuming at last gives better and finance made to for let to in six in that into better this we the roll the prices. strategic opportunity all investment the us next by a better a stock partnerships gives we wanted months

monthly off with and So it future is strengthen allowed when have largest next to secure, off to we this year payments. the look making it, structure year. the or pay money it start with pay if mean, us balance an end to And ATM shareholder. you know, we at it six-months sheet the for I you need using our

it think a we strategy. the supportive is transaction So to

Unidentified Analyst

My I’m is, buyer can’t I for is next question while. be - listen, stock. Okay. can of suffering seems your been a price suffering. a under share this to I I It understand, think

And don’t it. understand. can’t we I cheap. I before. officers this about haven’t and very is Why have at purchased stock price? this it get think I directors spoken

Brett Moyer

So been now release financials. good an period answer are directors they the and that extend for and simple the right is of a have beyond will extended in question. a time. is that these of And quiet officers period

are they or they sell moment, buy So are the allowed at locked not down. to

Unidentified Analyst

Can once release support some you these numbers? we expect

Brett Moyer

[Marty] that now. directors in is No, (Ph), the Board extended and quiet an I’m saying. period, is what the right

Unidentified Analyst

respect that. I Okay.

Brett Moyer

or want Yes. to, may sell buy. as And much or to, they cannot as they want

Unidentified Analyst

Okay, me, great. can the detail as confused the and the all? Can like to about with That into announcement you for I’m if association. what company explain that go about is to you Brett, great. to what NVIDIA, does the My some a last look all you guys, at little is about question future NVIDIA

Brett Moyer

So not which organization. a is like, sign WiSA, NVIDIA number leader products. technology members when that overall would joins there launched the always a of WiSA, strengthens great is joined have We in WiSA not

So and we don’t pre-announce anybody’s product.

a are be the WiSA DS products TVs. So just DS are they know, integrate working some the like on not can’t we But possibly are on are could it TV they discuss who even product. be can’t three we for discuss into working we us, digging they into or may that are reason, and tracking to brands could a anybody’s because

them else’s announced we product about And by talk company. talk memberships, some consumer the but retail them are some before about tracking, they what of we organization and product are of or members is somebody plans, WiSA of But WiSA, never not. are

Unidentified Analyst

Alright.

exciting great for your it in work that think your lot of seems the is got very like future things looks company. I bright a

Brett Moyer

team in rigorous the Like Asia. really and seen how perform under talent some we I can’t about testing enough say engineering have DS the of well

So, there to full and chopping bit WiSA out a the get the the get we industry. product are to e-modules at line out cover whole

Unidentified Analyst

me. great Sounds to

Brett Moyer

Thanks, Marty.

David Barnard

question I have think one more we got for more and question. time one

So, it is ending caller in the with X-X-X-X.

unmute by could six. you your lines dialing If star

Edward Woo

at for Has the impacted Thanks Yes. question. taking stronger your inflation dollar? all margins or my

Brett Moyer

this? Yes. Who is

Edward Woo

Capital. at is This Ascendiant Woo Ed

Brett Moyer

place Okay, Ed. sounded voice The couldn’t I familiar and it.

repeat question? you can the So

Edward Woo

Yes. dollar your gross Has impacted strong inflation or the margins?

Brett Moyer

or overall industry. P&L, months assembly speakers. it run the driven part has not premium things - every terms premium the rank material. in Top run our component every whether driven run of doesn’t has impacted business. or modules most It we and the are inflation shortages it is we on is margin by by production partly running labor for gross in Inflation the some on But on And costs Five partly Ed, production have nine

Edward Woo

Great. international And you talk strategy Can about then great for it European looks like and little you product WiSA? the marketing a strategy your to U.S. bit have holiday. heading a the in

Brett Moyer

to expand to observant. the plans Europe. has U.S. WiSA is that the focused on very So an as There that work predominantly actually are in association

sold I retail of gets And Whereas right brand not we have America try we in when coming mass are you out millions that yet start European some and have now. think in. built E the in that until get and launched is shops. brands place Most the likely have that more We that - North to speakers. customers is to high-end need talk WiSA have file retail mass where in going WiSA product are our home new it install, through, launched into to effort other we effort the custom E we you audio Europe consumers around really to theater

Edward Woo

good wish answering Thank your guys for questions my thanks you. and Great. luck.

Brett Moyer

Ed. Thanks

David Barnard

you And we have questions. further some remarks. showing no Brett, to want closing are if

Brett Moyer

pretty like forward accomplishments for the have XX-days. we to team excited talking to Thank you. about made, joining in everybody The I and you is would with thank looking us.

Operator

Goodbye.

WiSA (WISA) 15 Aug 222022 Q2 Earnings call transcript