Slide 1: First Quarter 2020 Results Conference Call
The New Industry Standard for Immersive Wireless Sound Summit Wireless Technologies, Inc. (NASDAQ: WISA) First Quarter 2020 Results Conference Call as of May 27, 2020
Slide 2: Forward Looking Statements
2 NASDAQ: WISA Forward Looking Statements This presentation contains forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . Readers are cautioned not to place undue reliance on
Slide 3: Technology and Industry Standard Association
3 NASDAQ: WISA Technology and Industry Standard Association Summit Rx RF Module Summit ASIC Speakers SWS997 4 WiSA: Audio industry standard Technology portfolio; ASICS, modules, IP 60+ WiSA Brands; TVs, speakers, media devices, and ODMs Summit: Wireless Immersive Sound for Smart Devices
Slide 4: WiSA Association: Building a Standard
4 NASDAQ: WISA WiSA Association: Building a Standard • WiSA (Wireless Speaker and Audio) Association founded by Summit Wireless Technologies • 60+ leading consumer electronics brands meet strict requirements for interoperability • Championing the most reliable, global interoperability standards acro
Slide 5: WiSA Association Boasts Tier-Members
5 NASDAQ: WISA WiSA Association Boasts Tier - 1 Members OTHER KEY MEMBERS TRANSMIT + SPEAKER MEMBERS ( ) ( ) TV MEMBERS ( ) System Audio A/S
Slide 6: Products Launched/Launching
6 NASDAQ: WISA Products Launched/Launching • Three 8k TV brands are expected to be shipping • No material change in speaker brands’ product design and production start dates
Slide 7: COVID-Impact
7 NASDAQ: WISA COVID - 19 Impact • Universally, retail is not happening in March/Q2 in brick and mortar stores except: • Survival: Target, Walmart, etc. • Home Improvements; Home Depot, Lowes, etc. • Consumers prioritizing their castle and investing • We believe a home entertainment cycle of improve
Slide 8: Holiday Season Built on Strategy and Value Proposition
8 NASDAQ: WISA Holiday Season Built on Strategy and Value Proposition • Soundbar and HTiB Market Size • WiSA’s Initiatives: • Value proposition of WiSA certified multi - channel Audio vs SB • HDMI Hub • Competitive Matrix • Marketing Test Results • Share Marketing Results extending the SB product li
Slide 9: 35M Unit Soundbar Market Expected in 2020
9 NASDAQ: WISA 35M Unit Soundbar Market Expected in 2020 Audio Configuration 5.1 3.1 WW Smart TVs (Ms) 35 35 Conversion to WiSA system* 5% 5% Audio Systems Sold (Ms) 1.75 1.75 Speakers per configuration 6 4 Transmitters per system 1 1 Module TAM (Ms) 12.25 8.75 Module ASP 9$ 9$ Rev. TAM (Ms of $) 11
Slide 10: Big Video Deserves Big Sound
10 NASDAQ: WISA Big Video Deserves Big Sound
Slide 11: The Whole Sound Stage
11 NASDAQ: WISA The Whole Sound Stage
Slide 12: The Whole Theater
12 NASDAQ: WISA The Whole Theater
Slide 13: The Sound Experience Options
13 NASDAQ: WISA The Sound Experience Options Soundbar TV Soundbar + Subwoofer + Simulated Dolby Digital/Atmos Soundbar + Subwoofer Discreet Speakers / Spatial Sound WiSA Home Theater • Better Sound Field • Lower Prices • Simple Installation
Slide 14: Roadmap to Lowering Adoption Costs
14 NASDAQ: WISA Roadmap to Lowering Adoption Costs TV: Annual Volume HDMI WIFI Bluetooth Dolby A/V Receiver Installation Installation Cost & Time Wires HDMI WIFI Bluetooth Dolby WiSA Hub/ Soundbar 30M High End WiSA USB Transmitter or WiSA Xbox Transmitter 15M+ WiSA Ready 200M+ TVs WiSA HDMI WiSA Rea
Slide 15: WiSA Initiative: HDMI Hub
15 NASDAQ: WISA WiSA Initiative: HDMI Hub • Connects all WiSA Certified speakers to smart TVs with HDMI ARC ~800M worldwide • Lowers the cost to the Consumer; $99 - $149 • Available for retail in Q3 • WiSA will distribute to ensure worldwide availability and support WiSA SoundSend Wireless Audio Tra
Slide 16: Competitive Positioning
16 NASDAQ: WISA Competitive Positioning WiSA delivers better sound at lower prices with installation simplicity WiSA Home Theater Systems “Fake It ‘til WiSA Certified!” Data from Bestbuy.com/Amazon week of 5/18 Brand Price Audio Channels Rear Speakers Included Discreet Front Speakers Sub- woofer Atm
Slide 17: WiSA Initiative: Market Research
17 NASDAQ: WISA WiSA Initiative: Market Research • WiSA is taking a leadership role in creating messaging for the consumer the WiSA benefits. • Immersive/spatial sound • Affordability • Simplicity of set up • Hi - fidelity • Driving industry web/podcasts and awareness interviews • Testing Direct to
Slide 18: Expanding the WiSA Ecosystem
18 NASDAQ: WISA Expanding the WiSA Ecosystem • Expanding gaming and home theater sound experiences • Xbox partnered with WiSA member Axiim • Xbox One, One S and One X work with WiSA Tx • Partnered with Summit, can tune Summit wireless module • Tuned by THX and THX Certified WiSA products are on the
Slide 19: Beyond Premium Audio
19 NASDAQ: WISA Beyond Premium Audio • Immersive Sound Expands to WiFi enabled smart devices: • 1B+ Smart Phones • 200M + Smart TVs • IoT Devices (e.g. wearables) • 200M Tablets • 60M Gaming PCs and Consoles • 50M Smart Speakers • Retail Prices drop $100 - $150 per 5.1 System • Embedded software sav
Slide 20: Financial Update
20 NASDAQ: WISA Financial Update • Revenue • Q1 in line with historic run rate; some pushes from Q1 into later this the year • Q2 Retail closed but opening up but weak • Q3 is holiday production • Operating Expenses coming down Q4 Q1 Q2 $2.9M $2.7M $1.9M • Financing • Raised $9.9M YTD in total fundi
Slide 21: Ecosystem Built; Products Launching
21 NASDAQ: WISA Ecosystem Built; Products Launching Expanding Market CE & OEMs embedding audio standard to intelligent devices & next - gen home entertainment Global Interoperability Standard IP Portfolio and TM 15 patents issued/pending covering key claims + WiSA™ Paradigm Shifts Create Opportunity