WiSA Technologies, Inc.

Greetings and welcome to the Summit Wireless Technology second quarter 2021 financial results call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Kirsten Chapman at LAC. LHA Investor Relations. Thank you. You may begin.

Thank you, Daryl. Good morning, everyone. I'd like to welcome you to the Summit Wireless Technologies second quarter 2021 financial results call. With us today are Summit Wireless CEO and President Brett Moyer and CFO George Oliva. Before I turn the call to Brett, I'd like to remind everyone of the safe harbor statement referenced in the SEC filings. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements, including statements made during the course of today's call. Statements contained herein that are not based on current or historical facts are forward-looking in nature and constitute forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the company's expectations about its future operating results, performance, and opportunities. These forward-looking statements are based on information currently available to the company or subject to a number of risks and uncertainties and other factors, including current macroeconomic uncertainties associated with the COVID-19 pandemic, our ability to predict the timing and design winds entering production and the potential future revenue associated with our design winds, our growth rate, our ability to predict customer demand for our existing and future products to secure adequate manufacturing capacity, consumer demand conditions affecting our customers and markets, our ability to hire, retain, and motivate employees, the effects of competition, including price competition, technological, regulatory, and legal developments, and developments in the economy and financial markets and others that could cause the company's actual results, performance, prospects, and opportunities to differ materially from those expressed in or implied by the forward-looking statements. For more detailed discussion of some of these ongoing risks and uncertainties of the company's business, I refer you to the company's various SEC filings. Now it is my pleasure to turn the call over to Summit CEO and President Brett Moyer. Please go ahead, Brett.

Thank you, Kirsten, and good morning, ladies and gentlemen. I'd like to welcome you to our second quarter earnings call. We had a pretty exciting quarter with a lot of accomplishments. I'm looking forward to going through with everybody. We'll highlight the accomplishments. We'll go through a few slides to catch up new investors on the business model, and then we'll go into more detail on the initiatives for revenue growth. So we have guidance out there that we have six TV brands using our technology. We were able to announce the fifth one since our last call, which is Toshiba. They market in Japan and Asia. And they have adopted the WISA SoundSense standard certification so that the SoundSense app can be downloaded onto their TV. The consumer can set up the entire WISA system, optimize their audio preferences, right with the TV remote on the TV screen. And the market will be hearing about partnerships, marketing partnerships with Onkyo later this year, who has a WISA-certified system out as well. Also, we announced that under the SoundSense certification program, any of the Android TVs, which are marketed by Sony, Toshiba, Sharp, Hisense, Insignia, which is a Best Buy brand, and several other brands are able to download the app, load it up, and drive Samsung and the Wysa system from their TV just like Toshiba. A big component of our plan this year is to increase Wysa's awareness with the consumers. So we had guidance out at one million, and we announced that we increased that guidance now to two million for this year. We have approximately just under a million people that have visited the WISA websites, and that's important to increase the consumer awareness. Now, with launching the first of what will be a handful of stores this year, WISA storefronts on Amazon, this will allow us to bring consumers to the WISA site, educate them on WISA, Educate them on all the brands that are shipping WISA products, premium audio, mainstream, entry-level price points, and then let them go to one store that covers a lot of the brands. And so when we direct traffic off the website, rather than directing traffic to a specific speaker brand or a specific retailer, we'll send them to these WISA stores as they open up. and Amazon's the first one. I'll show you what it looks like in a minute. But if you want to get online, it's Amazon.com backslash WISA. All right, we also joined the Russell Microcap Index, and we raised $10 million in July. Two big growth metrics for people to pay attention to. As I mentioned, we did start pivoting last year. The WISA Association from the technical standard to WISA a consumer-facing organization. And with that, the growth of visitors and being educated on WISA has gone from 26,000 to 360,000 to we expect more than 2 million people this year. Revenue growth. So we have said WISA membership is a leading indicator to designs. Designs is a leading indicator to revenue growth. Consumers is a leading indicator to sell-through on revenue growth to drive further revenue growth. And as you can see with our guidance for 2021 and our results in Q1 and Q2, we're experiencing significant year-over-year revenue growth, and the plan's working. For new investors, if you're looking at investing in Summit, there's really two pieces to the investments. One is the technology side and know-how to build high-performing multi-channel wireless audio, both in chips and IP. And then there's the standard for WISA, which has more than 70 brands in it that helps build the ecosystem for those products. If you look at the role of WISA, you know, just like with HDMI, when you're sending a highly sophisticated signal, from one source to another, you need to know what to send out, and the receiver needs to know what to receive. So WISA has a technical spec around transmission so that TVs, AV receivers can transmit to speakers, and speakers know how to understand and process that audio. This year, not all these products are in market yet, but they're either in market, in production, or about to go into production. So we'll have a broad range of products in the fall for the consumer to market to. In total, there's more than 25 brands that will be using our technology, and we look forward to continue building out the ecosystem. For the people that are thinking about what is the market that we're addressing, it's really the efficiency in the TV market and the efficiency in the Wi-Fi technology. So the TV... thin TVs have pretty low audio quality. It helps with a soundbar. Add a sub, it's better. And with Wi-Fi, you can add a couple of rear speakers. Now, with WISA, you can actually add all the speakers and get the full impact of going to the movie theater with front speakers, center speakers, rear speakers, Dolby Atmos speakers, and still have the simplicities of a soundbar setup, right? So you're not installing, you're not paying an installer, you're plugging some devices into wall outlets and an HDMI cable into a TV. Just like the soundbar, just as simple. So from a consumer experience, you're getting better sound, same simple installation. And if you look at Enclave Audio or Platinum Audio, you're actually getting a considerably lower price solution for a better sound field than, say, some of these premium sound bars from Bose and Sonos and Sony, which just the sound bars are running at $800. So Subwoofer moves you into the $1,300 price. So that is the market opportunity to get full cinema sound around those smart TVs because almost all the streaming services are streaming high-resolution, multi-channel audio for the consumer to use. The three growth initiatives are SoundSend, the WISA Wave, which is impacting both retailers, brands, and consumers, and our next-gen technology. So SoundSend. It was an important program this quarter to announce that a TV brand can now certify that you're SoundSend compatible. And this lets both the TV guys communicate that they're ready to support WISA as well as the speaker guys know that they can support Wireshift. And for the consumer, they now have a simple app that can be loaded onto their TV, and the TV turns into an effective AV receiver. We're getting good product awards for a product that's been out just six months, good consumer traction, and we think this is a big catalyst for us going forward. All right, a couple new things for the long-term investors that we're going to talk about now. So we have talked about driving consumers to WISA, educating them on the benefits of WISA, benefits of full surround sound with Dolby without Dolby Atmos versus a sound bar that's simulating everything. Well, it benefits the entire ecosystem by driving this. One, the brands get their products out, marketed as a category. Two, the consumers get to learn and hear what we're doing. Three, as marketers, we can actually identify who's engaged as a consumer and in market to buy audio, who's in market to buy audio file level, so 2,000, 3,000 and above systems, who's looking for just a great audio at a better price. And new to the program is helping the resellers. So one way is to open up WISA storefronts like you saw with Amazon, and we'll talk about it in a minute. But the other thing is when you look at our data analytics, we can take all that information, whether it's geography, time on site, pages, looking for high-end or lower-end entry-level price points. We are making that data available to WISA-certified resellers. So if you have two brands of TVs, if you have two brands of speakers, and you want to create a WISA storefront, then we'll also make available that data and those analytics so you can remarket directly to these engaged consumers your WISA offerings and bring them to your WISA website. We think this is a great enhancement to the WISA Wave campaign. What's the store look like? Look, I'm proud of the marketing team. I think the Wysa store looks fabulous. I think it does exactly what you'd want it to do, right? A consumer quickly on one landing page can see certified speaker categories, certified transmitters, TVs, and TVs and audios bundled together, right? So consumers see that this is a full category. They can click in. Now, you will not see all brands on Amazon. There's a lot of premium brands that won't. There's premium brands that are only shipping in Europe, in China, et cetera. But when we open up these stores, whatever is in WISA certified is able to come into those store pages, and the consumer will see the whole category. And if you think about it, that was part of why we launched the Platinum Audio brand, simply to create a bigger category for all consumers, right? We think the Enclave is a great mainstream product, really high performance. We think the audio files, of course, if you've got 3,000, 5,000, 20,000, great products. But when you think about what you can do with a cost-effective design, we can really go out and market a great sounding system for $800, $900. And so we wanted to create that entry point for the WISA ecosystem with Platinum Audio. All right, Gen 2. So I get lots of questions on the market size. I get lots of questions on Gen 2. We have launched our first product. That is our IP and software loaded onto an IoT device, Wi-Fi device. It is specifically targeted to soundbars and rear speakers and subwoofers. But the plan here is to bring out a 5 gigahertz, which has more than four channels, And that product is applicable to smart TVs, smart phones, smart speakers, tablets, headphones, the whole smart wireless connected market. Now, we have defined this as our strategy. We will continue to talk about it as we get closer to when there's designs to talk, when there's revenue to recognize. But right now it's at 2.4 gigahertz. that is applicable to soundbars that we're marketing. In terms of market size, another popular question we get, we think that Gen 1 is really applicable to, and that's the current product we're shipping, the top third of the market for the industry. But when you look at 270,000 smart TVs being shipped, and you look at IP that can either be loaded onto a TV or really a very cost-effective transmitter, substantially lower than the SoundSense, then we can see a 30% share for the whole market. And when combined, the 85 million TAM for Gen 1 and 550 for Gen 2, this is a 650 million market TAM, not considering what is available on headphones and other smart devices that Gen 2 ultimately would be applicable to. All right. With that, I'd like to turn the call over to George to update you on revenue guidance. George? Thank you.