In its latest annual report Syntec Optics Holdings, Inc. (OPTX), a maker of integrated optics and photonics components, sub-systems, and optical systems for the defense, medical, and consumer spaces, admits it received multiple notices from Nasdaq related to the company’s failure to timely file periodic reports and related inquiries regarding certain current report filings.

We suspect the reference to inquiries related to current report filings might be related to the resignation of Director Joe Mohr, Syntec’s former CEO.

Mohr quit without notice in March 2025 after 29 years with the company.

Besides alleging the company owes him wages, Mohr’s resignation letter accuses the Syntec of governance failures that have been compounded by the Board’s lack of awareness and oversight, allowing current CEO Al Kapoor to operate unilaterally.

Notably, Mohr’s resignation letter says the Board “was kept in the dark” regarding his decision to step down as CEO which included:

“...I refused to sign the 2024 Form 10-K due to financial decision by Al Kaoor- such as SPAC revenue recognition and unrealized customer credits- I did not control, a disagreement I raised directly with him. He withheld this from the board and omitted it from the April 18, 2024, 8-K, falsely presenting my resignation as a strategic shift.”

Mohr also says concerns over valuation and earnings call preparation raised to the Board of Directors went unanswered.

With an Enterprise Value (EV) of approximately $420 million, Syntec is priced as if it will grow annual sales to more than $1 billion, up from $28 million in 2025. To justify its current share price of $11.05 our Reverse DCF— which quantifies investor expectations embedded in the current share price— indicates Syntec must:

—Grow sales 43% annually for the next decade, faster 2025 sales growth of (1.41%) and the three-year average of 0.32%
—Increase NOPAT margin to 15%, versus our 2025 estimate of (3.84%) and three-year average estimate (2.55%)
—Increase Invested Capital (IC) Turns to 1.7, up from our three-year average estimate of 0.98

Notably, the current share price also implies Syntec increases Return on Invested Capital (ROIC) to 25.5% from our 2025 estimate of (3.9%) and three-year average estimate of (1.72%):