Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF), the AIM-listed semiconductor technology company, has seen its shares fall by a third, leaving it valued at less than £200,000, after revealing a cash preservation crisis that has forced its two senior managers onto part-time contracts.
The stock has now lost 92% of its value over the past year.
Chief executive David Levi and VP of research and development Shavit Baruch will both move to approximately 20% of their previous full-time commitment from mid-May 2026, in a move designed to slash operating costs while keeping the business nominally operational.
The trigger was the failure of warrant exercises to materialise, a mechanism the company had built into its 2026 cash flow plan, under which holders of rights to buy new shares at a fixed price would inject fresh funds into the business.
With the share price at its current level, the board said near-term exercise of those warrants was unlikely.
Ethernity now targets revenues of $1.6 million to $1.8 million for 2026, relying principally on an ongoing contract with an unnamed Tier-1 US defence and aerospace customer.
The company acknowledged that if those revenues fail to materialise, it would need to raise additional funds this year.
Ethernity said its aim was to continue as a going concern, meet short-term debt obligations and preserve the core research and development capability needed to serve existing customers.