Menomonee Falls-based EnSync Inc. has received a deficiency letter from the NYSE American, and is in danger of being delisted.
The company, which operates as EnSync Energy Systems, makes distributed energy resource systems and Internet of Energy control platforms for residential and commercial use. It was established in 1998 and also has offices in Madison; Petaluma, California; Honolulu, Hawaii; and Shanghai, China.
According to NYSE American LLC, EnSync’s securities have been selling at a low price per share for too long. The company must go through with a reverse stock split of its common stock or show continuous price improvement by July 7, or it may be delisted.
EnSync stock will now be listed as ESNC.BC (below compliance) and must continue to meet other listing requirements.
The company said in an SEC filing it “intends to take measures to regain compliance with the listing standards set forth in the Company Guide on the timeline established by the Exchange. However there can be no assurance it will be able to do so, and if it does not the Exchange may initiate delisting proceedings.”
EnSync, formerly known as ZBB Energy Corp., has struggled in recent quarters, but has been narrowing its losses with the shift to a power purchase agreement-based sales model.
In its most recent earnings report, for its fiscal first quarter of 2019 ended Sept. 30, EnSync reported revenue increased 15.9 percent from the first quarter of 2018, to $2.7 million. It also lowered costs and expenses by 12.2 percent year-over-year, to $5.6 million. But it reported a net loss for the quarter of $2.8 million, or 5 cents lost per share. The net loss was narrowed by 28.8 percent from the first quarter of 2018, when EnSync had a net loss of $4 million, or 7 cents lost per share.
In that report, EnSync management said: “The ability of the company to settle its total liabilities of $4.2 million and to continue as a going concern is dependent upon raising additional investment capital to fund the company’s business plan, increasing revenues and achieving profitability.”