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Resonant adds Bob Tirva to the board -1
07:57 11-Oct-18
Resonant has appointed
Bob Tirva to its board of directors. His accounting experience,
particularly the work at DropBox, is impressive. However, that
experience and the timing of this move slightly increases my
concern that there are accounting issues at Resonant. As
discussed with the first
quarter report, Resonant chose not to incur the additional
cost of restating prior results when the entire industry had to
move to ASC 606. We've also been waiting since then for the
milestone of 25M units shipped.
I saw the decision not to restate as a good move at a development stage where controlling costs is crucial to shareholders. It probably does complicate the work in the finance department, though, and if this all that's going on, any impact is likely to be non-cash and fairly minor, despite difficulty in sorting things out. Consequently, I have no inclination to liquidate any of the position I've built at current prices. I knew the risks going in, and choose to live with them now in the expectation that Resonant's technological progress, which should be updated at the end of the month, are of more lasting importance.
That should be followed by the 3rd quarter report, in early
November, where I'll hope to get more clarity on finances. I
think Resonant's technology and performance to date make it the
leading takeout candidate amongst the stocks I cover, which is
another possible reason for this board addition. Accounting
issues would delay execution on that, but probably not the
eventuality.