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Resonant management changes -4

17:58 29-Jul-16


Announcing bad news on Friday evening in the hopes that it will escape notice is commonplace.  The resignation of Resonant's CFO, supposedly for personal reasons, seems like such an event, since there was apparently no time to find a replacement.  The 8-K indicates that this will cost the company at least a quarter million in severance costs.  That's not a huge impact on a business that's burning $2-10M per quarter anyway, but it could easily be a sign of other, more fundamental problems. 

Technology startups are often a race between financing and product development.  When I first mentioned Resonant as a GRoDT stock, it was in the hopes that it could start generating revenue without toxic financing.  The goals here are impressive and there do seem to be some steps being taken toward them, but the financing terms that we've seen in the interim were not good.  The company will probably have to go back for more this year, so it's hard to see the risk/reward as favorable anywhere near current pricing.