Looks like Enova Systems' single-charge range is about to run out.

The California-based maker of electric-drive vehicle controller systems last week received a de-listing notice from the New York Stock Exchange because it didn't meet certain financial criteria.

Enova was cited for a combination of continuing losses and too low of a stockholders' equity amount. Last year, Enova's revenue dropped 23 percent from 2010 levels, to $6.62 million, and the company took a $6.98 million loss. The company's cash balance had dwindled to $1.36 million at the end of March, down from $3.1 million at the end of last year. Late last month, the company said CEO Michael Staran and Chief Operating Officer John Mullins resigned.

During the past half-dozen years, the company was collaborating with a number of electric-drive vehicle entities, but failed to make serious headway in terms of sales. In 2010, Enova said it was making an electric drivetrain for Daimler truckmaking unit Freightliner and walk-in van body maker Morgan Olson. The MT-EV was said to have a 100-mile single-charge range. Also in 2010, Enova also said it was working with EV-component supplier Remy International at developing an electric-drive system. Back in 2006, Enova said it was developing power-control units for the now-defunct EV maker Think.
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Enova Systems Receives NYSE MKT Exchange Notice of De-Listing

TORRANCE, Calif.--(BUSINESS WIRE)--Enova Systems Inc. (NYSE MKT: ENA) (AIM: ENV) (AIM: ENVS), (the "Company") announced that on July 5, 2012, it received notice (the "July Notice") from the NYSE MKT (the "Exchange") indicating that the Company no longer complies with the Exchange's continued listing standards as set forth in Section 1003 of the NYSE MKT Company Guide (the "Company Guide"), and that its securities are, therefore, subject to being delisted from the Exchange.

By a series of letters, the Exchange previously notified the Company that it was not in compliance with the following sections of the Company Guide: (a) Section 1003(a)(iii) insofar as the Company reported stockholders' equity of less than $6,000,000 and has incurred losses from continuing operations and/or net losses in five consecutive fiscal years; (b) Section 1003(a)(ii) insofar as the Company reported stockholders' equity of less than $4,000,000 and has incurred losses from continuing operations and/or net losses in three out of its four most recent fiscal years; and (c) Section 1003(f)(v) insofar as its Common Stock has been trading at a low price per share for a significant period of time.

On May 17, 2012, pursuant to Section 1009 of the Company Guide, the Company submitted a plan of compliance (the "Plan") advising the Exchange of actions the Company would take to regain compliance with Section 1003(a)(iii) and 1003(a)(ii) of the Company Guide by October 15, 2013. The July Notice stated that the financial projections provided in connection with the Plan did not demonstrate an ability to regain compliance with the minimum requirements by October 15, 2013. The July Notice further stated that, on June 25, 2012, the Company notified the Exchange that the financial projections provided with the Plan were no longer accurate and did not provide the staff of the Exchange (the "Staff") with updated projections.

On June 25, 2012, the Company filed a Form 8-K disclosing the resignation of Chief Executive Officer and Director Michael Staran, Chief Operating Officer John Mullins and Director Rich Davies, reinforcing the Staff's conclusion that the Company will be unable to regain compliance by October 15, 2013.

Following a review of the above-described facts, the Staff advised the Company that the Exchange did not accept the proposed Plan and that the Company is therefore subject to delisting pursuant to Section 1009 of the Company Guide.

In accordance with Sections 1203 and 1009(d) of the Company Guide, the Company has a limited right to appeal the determination of the Staff by requesting, on or before July 12, 2012, a hearing with the Listing Qualifications Panel. The Company intends to exercise its right of appeal. There can be no assurance that the Company's request for continued listing will be granted.

About Enova:

Enova Systems (http://www.enovasystems.com) is a leading supplier of efficient, environmentally friendly digital power components and systems products. The Company's core competencies are focused on the development and commercialization of power management and conversion systems for mobile applications. Enova applies unique 'enabling technologies' in the areas of alternative energy propulsion systems for light and heavy-duty vehicles as well as power conditioning and management systems for distributed generation systems. The Company develops, designs and produces non-invasive drive systems and related components for electric, hybrid-electric, and fuel cell powered vehicles in both the "new" and "retrofit" vehicle sales market. For further information, contact Enova Systems directly, or visit its Web site at http://www.enovasystems.com.

Additional Information:

This news release contains forward-looking statements relating to Enova Systems and its products that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "could," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology and statements about industry trends and Enova's future performance, operations and products. These forward-looking statements are subject to and qualified by certain risks and uncertainties. These and other risks and uncertainties are detailed from time to time in Enova Systems' periodic filings with the Securities and Exchange Commission, including but not limited to Enova's annual report on Form 10-K for the year ended December 31, 2011 and Form 10-Q for the quarterly period ended March 31, 2012.


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    • 1 Second Ago
  • 12 Comments
      Marco Polo
      • 18 Hours Ago
      @ Ah, Geneva! A truly lovely city. You are indeed fortunate to live in Geneva,( well, Switzerland in general ). My father lived in just outside Geneva as a Tax exile, until he solved the problem by just not having any money left to tax ! I haven't been in Geneva for years, but is Dominique still ruling the Le Chat Botte restaurant at the Beau-Rivage hotel ? As I remember, most of the bars and restaurants were strictly cash only !
      Nick
      • 18 Hours Ago
      Yep, agreed. At the same time I am wondering, is developping these systems / vehicles really that difficult? We're not talking Model S here, we're talking producing a basic delivery van with fiberglass body panels. Electric motors, batteries, controllers etc.. are already available on the marketplace....
      Nick
      • 18 Hours Ago
      @ Marcopolo Geneva is a nice city, but also a very conservative place with rigid structures, where there's no place for innovation. Anyone who's travelled to China, India and the U.S. knows that the golden times here in Switzerland will not last for ever. Switzerland is weakening politically, and losing its competitiveness to emerging nations where people are willing to work a lot harder for a lot less. I haven't been at Le Chat Botte for a long time, but I'm pretty sure bars and restaurants now accept credit cards.
      Nick
      • 18 Hours Ago
      I believe it remains hard to be profitable when selling a few / dozen EVs once in a while, even if they're built only after the order was taken. Facilities, staff, machines, utility bills, warehousing, taxes etc.. still keep rolling..! But hats off to you for pulling it off.
      Nick
      • 18 Hours Ago
      Sad to see one more EV tech firm go down. By the way, this looks like a nice van.
        Marcopolo
        • 18 Hours Ago
        @Nick
        @Nick, I agree, but the time for these small, inadequately funded EV builders is over. Specialist builders must produce specialist vehicles, to order. To much time 'developing' and not enough focus on delivering EV's (no matter how imperfect) to designated purchasers, is a recipe for failure.
        SVX pearlie
        • 18 Hours Ago
        @Nick
        No surprise, to me. These small companies would have had a chance if they had delivered product 3 or 4 years ago. At this point, it's far too late to play with the big boys like GM & Nissan. Best strategy is to find a strong niche like Caterham or another micro-builder.
      Marcopolo
      • 18 Hours Ago
      @ Nick, Again you are quite right ! The tricky part of these vehicles is not installing the EV drive-train, but getting the chassis, brakes and suspension right. Specialist vehicles like these have been produced for over eighty years. All over the world EV manufacturers (like Taylor-Dunn of Anaheim Cal.) have been quietly building EV work vehicles. These manufacturers are overlooked by ABG, and the EV community. Light commercial vehicles seldom require sophisticated features like Electronic Stability Control, and can be produced to order on a fleet by fleet basis. This is a great advantage for a small manufacurer. 17 years ago, I was forced to foreclose on a failing Auto Electrical Business Specializing in servicing EV's etc. My first inclination was to cut the loss, by closing the business and selling the remaining assets. It was my (late) wife's passion for the environment that spurred me to restructure the business, and make it successful. We started looking around for customers. I was told that no one wanted expensive EV vehicles, with low ranges and poor resale. Even the fork lift market was very competitive and dominated by three big companies. After initial investigation I discovered that was correct ! But, I decided, what was wrong was not EV's as a concept (although at that time the technology was pretty unsophisticated) but the marketing. By first creating the demand, and then building vehicles to meet sales we were able to stay in business long enough to learn. (We also sold existing EV's as agents). A good example of our early efforts was to sell an oil company 9 EV's ! The idea for this sale came from my need to enlarge a struggling Security Patrol Company, we had financed, and held a substantial equity percentage. The Oil company required 24 security patrol of it's storage facilities. After obtaining a favourable report from the facilities insurers, Unions, Fire brigades etc, we incorporated the EV patrol units as a sales incentive to win the security contract. That was the first 9 EV's we built to our own spec's. We leased the EV's as part of the security contract, so the cost of building the EV's, was amortized and disguised in the overall cost to the Oil company. 17 years later, we have over 160 similar EV vehicles leased to installations of this type, ( We also provide EV's to resorts, hire firms etc). I had the pleasure of meeting Takashi Ashida, and driving the excellent 500 + klm range, Mitsuoka Himiko EV luxury sports-car, produced by his company. The Himiko sells, very profitably, to a limited market of rich Japanese enthusiasts. EV's can be profitable, if built and marketed to the needs of captive or specialist markets. But developing an EV to be sold on a mass market basis, requires different skills, far beyond simple engineering. It also requires very deep pockets, and a huge capital commitment, far beyond the capacity of most enterprises.
      Marco Polo
      • 18 Hours Ago
      @Nick Thank you. But you have to be pretty inventive and able to achieve high profit margins. One method is to control the life time earnings of the vehicle. We have created a mostly niche market, lease/hire/rental business, which ensures that we have more orders than can we can build. If we have to many orders, we simply out source.By targeting resorts, specialist uses, and creating customers, and sales opportunities overlooked by more conventional enterprises , we never really have any down-time. We keep busy ! But the main reason our EV business has survived, and is profitable, is because we are really selling a total package, the most important part being finance. In the case of the Oil company, we leased the vehicles to the Security Company. That increased the value of our equity in both the Security company and the EV company. The monthly payments to our lease finance company, provides asset backed, steady stream of compounding interest, which can be reinvested. This in turn increases the value of our lease company. Since the lease company is partly owned by a merchant bank, (which is where I started) Bank's position is gains from both it's profitable equity investment, and also has a valuable customer who can't change banks ! . By targeting resorts, specialist uses, and creating customers, we never really have any down-time. We keep busy ! But, you're right, it's not easy, and I'm not getting younger ! Now most of my family have grown, and I find traveling less romantic, I fill in the hours I used to sleep on planes, etc, contributing to sites like ABG, hoping to promote better environmental technology.
      Nick
      • 18 Hours Ago
      Marcopolo You're very knowledgeable, I'd like to get together for a drink sometime if you're in Geneva.
      Nick
      • 18 Hours Ago
      That would be great! Luigi Colani (Zurich) might also be of interest to you, he's actually quite a visionary designer, or Rinspeed's Frank Rinderknecht, also near Zurich. Cheers bellaggio1770@yahoo.fr
      Marcopolo
      • 18 Hours Ago
      @Nick, Never underestimate the Swiss ! (or over-estimate the Peoples Republic of China) ! I hope to travel to Switzerland next year to attend a conference on 3 D printing (manufacturing). This is a fascinating technology with the potential to revolutionize the world ! ( I also hope to further my campaign against the use of bunker Oil while I'm in Europe). I also hope to meet the EV technology pioneer, Dr Wolfgang Gohl. I have long admires his engineering knowledge. So maybe if you have time, the three of us could visit those bars and clubs in Geneva together. (purely as a scientific study, of course, to see if they now accept credit cards!)