EnSync Inc (NYSEMKT:ESNC) has been slowly moving up in the stock market, following a change in higher management of the company. The stock has added over $0.42 to its share value, since it made the announcement, on September 23, 2016. The company had announced that its CFO, James Schott, would be retiring from his post and his responsibilities would be transferred under the CAO. In addition to this, ESNC also appointed Fred Vaske as the new CAO, promoting him from the VP of Structured Finance. The decisions went into effect on September 30, 2016.
The company’s steady yet continued ascent comes at meager trading volumes, in magnitudes of a few thousands. This indicates that investors are still being cautious about trading ESNC. One of the reasons for this skepticism could be the most recent financial statement from the company. On September 8, EnSync held a conference call to discuss the 4Q2016 financial results, announcing that its net loss had widened to $5.8 million, from $3.5 million a year ago, despite revenues being $1 million higher, as compared to the 4Q2015.
EnSync recorded $3.1 million, as cost of products sold, as compared to $59,000 in the preceding year. Lately, ESNC has been focusing on the sale of Power Purchase Agreements, which Mr. Schott had claimed would be reported from the 1Q2017 financial results. He also claimed that the company continues to make progress in significantly reducing its operational expenses, results of which are yet to be seen. The company claimed that it has already received $7.5 million as upfront for the PPA sales, which it plans to add to the financial statements of the 1Q2017.
The discouraging financial report from the company could be one of the reasons for why the stock has been gaining momentum after the management change. Upon the appointment of Mr. Vaske, ESNC CEO, Brad Hansen, claimed that it was fortunate to have someone like him to lead the company through the next stage of development. He defended the appointment by pointing out that Mr. Vaske has complete knowledge of the business and its potential customers. EnSync Inc (NYSEMKT:ESNC) was trading at $1.27 per share, at the end of October 10.
