Its nowhere near done and it won't be released until after 0.4.0 comes out. Currently, the files are exactly 8 times smaller than the original wave file, but that is with no compression, I will add compression later. I'm still trying to figure out how to convert the 8 bit signal to a single bit one, this is the best I've got so far but I know I can do a lot better. If anyone knows the algorithm or where I can find it, that would be really helpful! Especially if you know how the RealSound algorithm works or similar player.
Here is a sample executable, it doesn't sound good, but at least you can hear it on wabbitemu. Its awful on a real calculator though, so test it on the emulator.