tag:blogger.com,1999:blog-754894216207950592.post3318031696677151781..comments2024-03-20T15:55:23.392-07:00Comments on NoNameStocks: ECIA: Dominoes and the Guessing GameDan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-754894216207950592.post-75734423488060362112022-07-07T20:59:08.857-07:002022-07-07T20:59:08.857-07:00Obviously hasn't gone well with the cancellati...Obviously hasn't gone well with the cancellation of the supply agreement and the Q4 results were underwhelming. I did find the wording on the Q4 earnings release to be strange where they said "towards the end of Q4 business needs took a different direction." as they described the cancellation of the supply agreement. It is odd that they would add that commentary without providing additional information. After a quick spin through the supply agreement, I don't really see anything that would be an obvious explanation for it being canceled so soon after it was signed.<br /><br />I am not entirely surprised by the delay in the 10-K with them changing auditors, but it also wouldn't surprise me if there was something significant dropped in the subsequent events....they are a pretty small company, I can't imagine there are any items that are too challenging in the presentation of their financial statements. Their balance sheet is strong enough that they shouldn't have a going concern disclosure. Maybe it is nothing though. <br /><br />Still holding but not seeing a reason to buy more right now. Marknoreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-56190667988881661472022-02-16T07:53:03.304-08:002022-02-16T07:53:03.304-08:00I agree the latest numbers are not exciting. I th...I agree the latest numbers are not exciting. I think the upfront payment was immaterial which is too bad. Still the question is the future. more waitingDan Schumhttps://www.blogger.com/profile/05728696891530868697noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-80435006900378128022022-02-15T20:02:05.189-08:002022-02-15T20:02:05.189-08:00The 10Q didn't bring any further clarity. I w...The 10Q didn't bring any further clarity. I went back to read the supply agreement and it does reference a ramp up period, so it is quite likely that there wasn't a lot going on during the quarter. The one item that surprised me is that the agreement references an up front payment due within 30 days of signing. I would expect this to show up on the balance sheet as unearned revenue and then recognized over the period. The balance sheet does not show any unearned revenue, and the other liabilities didn't have any significant movement.<br /><br />I am guessing that the upfront payment was immaterial. I doubt it was accounted for incorrectly (or I am wrong about how it should be)...and if it was taken straight to revenue, I would have expected to see a much better quarter. Let's hope it is weighted more towards the milestone payment and ongoing revenue. <br /><br />Unfortunately it will be another long wait for the next filing. I was surprised there wasn't movement in the stock yesterday, but we definitely saw it today. Markhttps://www.blogger.com/profile/15350288303949096929noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-11571629575039067172021-12-15T09:35:16.036-08:002021-12-15T09:35:16.036-08:00does seem weird but I don't know. if I google...does seem weird but I don't know. if I google "Eide Bailly LLP resigned as the independent registered public accounting firm" I can see a few instances of firms resigning to it does happen at least sometimes. Dan Schumhttps://www.blogger.com/profile/05728696891530868697noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-67881699386017513192021-12-15T06:44:44.939-08:002021-12-15T06:44:44.939-08:00I noticed that their audit firm resigned. Have yo...I noticed that their audit firm resigned. Have you ever seen that on any other company you follow? I have seen plenty of times where the company replaces the audit firm, but I don't think I've ever noticed one resigning before. The 8k does say there were no disagreements, just found it to be odd.Markhttps://www.blogger.com/profile/15350288303949096929noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-92138905654533631552021-11-26T08:52:31.960-08:002021-11-26T08:52:31.960-08:00oh wow I didn't realize it had come so far bac...oh wow I didn't realize it had come so far back down. what a crazy rise and fallDan Schumhttps://www.blogger.com/profile/05728696891530868697noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-85752044347727371222021-11-26T08:11:15.979-08:002021-11-26T08:11:15.979-08:00Do you have any thoughts related to Franklin Wirel...Do you have any thoughts related to Franklin Wireless Corp? Interesting is that this company (MC of 46M) is debt free and the market cap is almost covered by the cash on their balance sheet. Michuhttps://www.blogger.com/profile/03414971091277943787noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-35491505655315715502021-10-10T19:10:31.050-07:002021-10-10T19:10:31.050-07:00That has been one of outcomes I've been counti...That has been one of outcomes I've been counting on. At the time of the most recent announcement, the market cap was ~12M. Have to think they could have bought the business for $25M at the most. In this case, it makes me think the new supply agreement isn't going to be that large or it would have made much more sense to buy them out. Hope to be wrong, but even something like 500k/qtr minimum could make a big difference.Markhttps://www.blogger.com/profile/15350288303949096929noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-29128892464640683712021-10-08T08:19:30.128-07:002021-10-08T08:19:30.128-07:00good questiongood questionDan Schumhttps://www.blogger.com/profile/05728696891530868697noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-55894708297810105502021-10-08T07:04:34.797-07:002021-10-08T07:04:34.797-07:00What I can't figure out is why doesn't J&a...What I can't figure out is why doesn't J&J/Auris just buy ECIA? For less than $50m they could have the whole thing...LLCJnoreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-37336981904812628142021-10-07T22:14:17.167-07:002021-10-07T22:14:17.167-07:00Fantastic article.
Patience, patience and potencia...Fantastic article.<br />Patience, patience and potencial.<br />Thanks Dan.David Rodriguezhttps://www.blogger.com/profile/08783326120517776862noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-41093569419416292972021-10-07T17:32:16.057-07:002021-10-07T17:32:16.057-07:00I don't feel I have a good grasp on the range ...I don't feel I have a good grasp on the range of potentials here but I think the ceiling is much higher than current market capDan Schumhttps://www.blogger.com/profile/05728696891530868697noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-1535783713521891762021-10-07T17:31:20.680-07:002021-10-07T17:31:20.680-07:00sorry J&J purchase *price*sorry J&J purchase *price*Dan Schumhttps://www.blogger.com/profile/05728696891530868697noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-60435791821074525202021-10-07T17:30:34.785-07:002021-10-07T17:30:34.785-07:00you have just highlighted the risk and reward. I ...you have just highlighted the risk and reward. I don't know those answers. All I can say is ECIA says the market is about $500M annually and maybe the J&J purchase prove for Auris of several Billion gives some idea of the potential. <br /><br />we should see the initial payment hopefully in the next Q but the CEO would not give me any more info unfortunatelyDan Schumhttps://www.blogger.com/profile/05728696891530868697noreply@blogger.comtag:blogger.com,1999:blog-754894216207950592.post-62682924896882579522021-10-07T17:20:32.836-07:002021-10-07T17:20:32.836-07:00Another excellent article, but why have their sale...Another excellent article, but why have their sales remained pretty flat year after year for 10 years? Any idea of the total potential of this agreement with J & J?Anonymousnoreply@blogger.com