Attention, audiophiles! If you’re choosy about the sound quality of your home entertainment system, then you might appreciate the value proposition of WiSA Technologies (NASDAQ:WISA). However, even if you’re not picky about the sound coming out of your speakers, WISA stock might still deserve a place on your watch list as long as you can handle the risks involved.
Oregon-headquartered WiSA Technologies specializes in making home entertainment systems. The company is also a founding member of the Wireless Speaker and Audio Association, or WiSA.
It’s a small company with a market capitalization of around $6 million. Speculative investors should conduct their due diligence on WiSA Technologies, which has intriguing products and a notable intellectual property (IP) portfolio.
What’s Happening with WISA Stock?
WISA stock is far below its peak price, and is actually quite affordable now at less than $10 per share. Low-priced stocks have the potential to move higher quickly, though they can also lose value just as quickly.
Therefore, an investment in WiSA Technologies isn’t appropriate for everyone. Also, some people might consider it a deal-breaker that WiSA Technologies isn’t a profitable business, according to the company’s most recently released Form 10-Q.
On the other hand, WiSA Technologies appears to be well capitalized to continue its operations. In an investor presentation, WiSA Technologies assures that, with the closing of $3 million in financing, the company “should be sufficient cash 2023.”
Furthermore, WiSA Technologies recently closed a registered direct offering of common stock. This is expected to generate $6.2 million in gross proceeds, minus placement agent fees and other expenses.
WiSA Provides Industry-Leading Audio Tech Solutions
So far, we’ve discussed the low share price of WISA stock and WiSA Technologies’ capital position. However, prospective investors should know about the company’s industry-leading products, as well.
First, there’s WiSA Discrete System Technology. This “transmits and receives up to five channels (including a subwoofer) of uncompressed 16-bit 48 kHz sound over a Wi-Fi network (2.4 GHz spectrum) it creates.”
WiSA Home Theater Technology, meanwhile, includes a transmitter module and a receiver module. It “delivers up to eight channels of uncompressed 24-bit 48/96 kHz sound over a wireless network (U-NII 5 GHz spectrum) it creates.”
There’s a lot of geeky audio tech talk here. The point, however, is that WiSA Technologies offers best-in-class audio system experiences. All told, WiSA Technologies has 24 issued patents, pending patent applications or patent filings.
Plus, we can’t ignore WiSA Technologies’ WiSA E software solution. This provides “high-performance, high-quality wireless audio transmission and reception at an affordable price.” WiSA Technologies recently announced its first shipments of WiSA E development kits to initial beta customers.
What You Can Do Now
As a leading audio tech solutions provider, WiSA Technologies may be poised for strong growth over the coming years. It’s difficult to give the company more than a “B” rating, however, as it’s not currently profitable.
It’s encouraging to know, though, that WiSA Technologies is fairly well capitalized for the time being. Hence, after weighing the risks and potential rewards involved, feel free to consider a small position in WISA stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.