It was r/s or get delisted. There was no option. Amazon is invested here, and they appear to be making more of a push into healthcare. Who knows if they eventually take a bigger position. But I invested because I use the product for my daughter and see this category becoming much larger in the future. My daughter was sent home from the NICU with a bulky box, chest strap and wires to monitor her at home. It was the most outdated looking technology.

Owlet is the leader in the space and has a very solid brand recognition with new parents. I feel there is legit buyout potential with this one too if they get the final de novo FDA clearance. They recently got 510(k) FDA clearance, allowing them to sell a prescription version (BabySat) which will replace that old school equipment I mentioned. It also makes BabySat the first FDA cleared product in the category and validates Owlet's base technology.

The company is already being approached by DMEs, insurance companies, and health providers who are looking to cover/offer this BabySat version of the product. This will give lower income families access to this "high end" baby product. Another positive sign is that you are starting to see bigger name medical device players like Masimo who are about to enter this market of at-home pediatric health monitoring.

On the surface it was a positive earnings call yesterday, but shorty is starting to borrow my shares again. Currently tapping about 6k shares. I’m assuming they see there is still a cash crunch issue and Owlet will likely need to go to market soon to raise even more cash. They currently have about $25m in cash as of June and are burning around $11m/quarter. They also have significant dilution to come as these private placement shares (about 8m) are converted. These are some of the negatives to consider.

I think it’s going to take another year for Owlet to truly come out the other end of this thing, assuming we don’t see a full-on recession. But everything now hinges on the de novo (software as a medical device) FDA and international regulatory clearances. This brings back the main feature of the product, live o2 readings and alerts. International revenue is barely trickling in now since those regulatory bodies are following the FDA's lead, requiring medical device clearance. International revenue on pace for less than $5m in 2023. They can't continue their expansion efforts until they are fully cleared to sell the product with health alerts.

I do think the company is finally on the upswing after the FDA warning letter back in 2021, but there is still a huge hill to climb before they are in the clear financially. I'm holding what I got for now with no plans to buy or sell. The waiting game continues for Owlet investors.