WiSA Technologies announces executive departure and transition plan

WiSA Technologies, Inc., a semiconductor and related devices manufacturer, disclosed the upcoming departure of Gary Williams, the company's Vice President of Finance and Chief Accounting Officer. Williams is set to leave the company effective November 30, 2024, as stated in the recent Form 8-K filed with the Securities and Exchange Commission.

The announcement, made today, clarified that Williams' decision to resign was not due to any disagreements with the company regarding its operations, policies, or practices. The company, based in Beaverton, Oregon, and known by its trading symbol NASDAQ:WISA, reached an agreement with Williams to ensure a smooth transition.

As part of the transition plan, Williams will receive a one-time bonus of $151,925 on his separation date, provided he remains employed through November 30, 2024, and fulfills his duties, including assisting with the training and handover to his successor. Additionally, Williams will benefit from the full, accelerated vesting of any unvested restricted stock awards.

WiSA Technologies and Williams intend to sign a formal separation agreement, which includes various terms regarding the treatment of other employee benefits. This agreement will also encompass a supplemental release, which includes a standard release of claims by Williams in favor of the company.

The details of the transition and separation agreements were included in the exhibits attached to the SEC filing, providing transparency about the arrangements made between WiSA Technologies and Williams.

The departure of a high-level executive like Williams is noteworthy for investors and stakeholders, as it may influence the company's financial leadership. WiSA Technologies has not yet announced a successor for the role of Vice President of Finance and Chief Accounting Officer.

In other recent news, WiSA Technologies, Inc. has successfully regained compliance with Nasdaq's equity listing rule, following a decision by the Nasdaq Hearing Panel. The company has also reported its first-quarter 2024 results, announcing the launch of WiSA E, a new technology for wireless immersive audio transmission. Five licenses have already been secured for WiSA E, with revenue from these licenses expected in the second half of 2024.

WiSA Technologies has also announced the appointment of Kimberly Briskey to its Board of Directors, following the resignation of Lisa Cummins (NYSE:CMI). Briskey brings over 15 years of strategic finance and business operations experience to the board.

On a broader scale, recent developments in the semiconductor industry have seen the United States expand its sanctions against Russia, targeting China-based firms supplying semiconductors to Russia. These sanctions aim to cripple the Russian military's capabilities amid ongoing conflict in Ukraine.

InvestingPro Insights

As WiSA Technologies, Inc. navigates the departure of a key financial executive, investors may be scrutinizing the company's financial health and market performance. Based on the latest InvestingPro data, WiSA Technologies holds a market capitalization of $7.48 million. The company's financial challenges are reflected in its negative gross profit margin of -115.99% and an operating income margin of -1147.29% for the last twelve months as of Q2 2024. These figures underscore the company's struggle to maintain profitability amid a shrinking revenue, which has seen a decline of 34.87% over the same period.

Furthermore, InvestingPro Tips suggest that WiSA's stock is currently in oversold territory, indicating that it may be undervalued given its recent trading activity. With the stock price hovering near its 52-week low, this could present an opportunity for investors looking for potential entry points. However, it's important to note that analysts do not expect the company to be profitable this year, and the stock has experienced significant declines over various timeframes, including a 98.86% drop over the last year.

For investors seeking a more comprehensive analysis, there are over 17 additional InvestingPro Tips available for WiSA Technologies, which can be accessed for deeper insights into the company's performance and prospects. These tips and metrics could be instrumental in making informed decisions, especially during a period of executive transition.

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