Datavault AI Inc.

Good day and welcome to the WISA Technologies first quarter 2024 results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. This event is being recorded. I would now like to turn the conference over to Mr. David Bernard. Please go ahead, sir.

Greetings and welcome to WISA Technologies conference call to review its first quarter 2024 results and provide a business update. At this time, all participants are in list-only mode. A brief Q&A. Again, we'll follow the formal presentation. As a reminder, the conference is being recorded. With us today is Brett Moyer, CEO and President. Before turning the call over to Brett, I'd like to remind everyone that today's conference call will include forward-looking statements. which are subject to various risks and uncertainties that could cause their actual results to differ materially from these statements. Any such forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and risk factors discussed in our filings with the SEC. WISA assumes no obligation to update any of these forward-looking statements except as required by law. With that, I'll turn the call over to Brett. Please go ahead.

Thank you, David, and good morning, ladies and gentlemen. Thank you for joining us on WISA Technologies Q1 investor update. Now, today we'll go over a quick overview of WISA for any new investors or listeners. We'll cover WISA E's competitive advantage and how we architected it and we're going to market. We'll discuss licensing deals and financial highlights. And finally, we'll talk a little bit about the shareholder vote on May 31st, designed to encourage everybody to get out and vote. For the highlights, when we launched WISA-E late last year and started licensing it in Q4, we think that's a major inflection point for the company that will start demonstrating itself in revenue in the second half of this year and for the industry. Because as we'll talk about later in this presentation, it's a very powerful platform, this software that we've developed for transmissions. And in October, we announced we would start licensing it to TV and set-top box companies for the transmission piece of it, not the piece in the speaker. And to date, in the first six months, we've signed five licenses, which we think is a terrific start to a new technology. We continue to have a strong portfolio of patents in the wireless space for multi-channel high-resolution audio. And uniquely to us, we have the WISA Association, referred to as WISA LLC, which is designed to make sure there's interoperability between products that have the source of content with a WISA-E transmitter and have a WISA-E receiver. And that organization works with both sides of the fence for interoperability testing, works with retailers to make sure they understand what WISA-E does, and with make sure the branding is properly displayed so that consumers know which products work with which. This is modeled after how HDMI has started and went to market, and we're continuing to build that out. And finally, fortunately for us, while this is a powerful, innovative new technology, WISA-E, we have the great advantage of launching it into a premier customer base, and we'll go through a few of those today, but we've been selling the highest performance wireless multi-channel audio for 11 years. And that customer base is very supportive of us, albeit they understand that we had a very expensive solution that we've now addressed. All right, so what's immersive audio, spatial audio? You think about what the innovation that's going on in video recording and mixing and the audio – industry, we're all trying to create that environment, whether it's a bedroom, a family room, a patio, a garage, but create that environment so that the audio sounds like you would experience it if you were there in the concert, in the symphony, at the NFL game, in the movie theater, right? That's what spatial audio or immersive audio is trying to do, create that three-dimensional audio for the consumer. And this picture in the shaded green is demonstrating what they're trying to get to. So Dolby has Atmos, which is their immersive technology. Google has IAMF, which is their solution. And Xperia has DTSX. All of them are trying to make it easy for you to understand and hear what all the audio that occurs when you're at that event or at that movie theater or in the NFL stadium, right, above you, behind you, on the side of you. When you go wireless and not make those speakers wired, then it becomes easy for the consumer to set up and enjoy that immersive audio. And that's where we come in, right? We're not the publishers. We're not YouTube creating content or Hollywood publishing. We're not the Wi-Fi network, and we're not one of the technology companies that have the decoders, audio decoders for immersive audio. What we are is we believe the best solution to get that audio from the source device, whether it's a TV, phone, projector, set-top box, to the audio devices in that room flawlessly, right, with the best sync, the tightest latency, and the most reliable signal. So we are the transport. Second, we are the association that makes sure that consumers know what products work with who and manufacturers build products that work with each other. I mentioned earlier we have a strong customer base that have used us over the last 10 years. This is a summary of some of the bigger ones. But it's important when you're launching a new technology to not be a new company with a new technology. We're a well-established company with a killer new technology, which we'll talk more about. All right. So the power of YCE. So if you would have heard a lot about home theater five years ago, 10 years ago, but that's really not the focus, right? The focus is to get that immersive audio in anything in any platform or any room or any area in your house that you want to enjoy audio at and get it from any source. So when you look at the sources that we had at CBS, you had two TV companies playing YSAE. You had two set-top boxes playing YSAE in our suite and a third set-top box in a private suite. You had a Google phone. You had a Samsung tablet. All of these sources were able to play wise to E from them to the same speakers in the room. And we think that's important, right? You don't want to have Bluetooth speed. It's like with Bluetooth. Fine. That will work when you Bluetooth, but it won't work with other stuff. We want any wifi enabled device to be able to play with the same speakers in that room, regardless of how it is. So that's what we demonstrated at CES. And that's what, when you look at what we're trying to do, that's how we're going forward.