AfterMaster (AFTM) Risk Analysis
Risk Overview Q2, 2019
Risk Change Over Time
No filing history is available.
- Demand - Risk 1Dilution; Dilutive Effect of Future Transactions.
As of June 30, 2017, we had 118,486,728 shares of Common Stock, $0.001 par value, issued and outstanding. We had options outstanding that would permit, if exercised, the issuance of 525,000 additional shares of common stock at an average exercise price of $0.18. We may also issue further shares to certain of our management, directors, officers, employees and consultants in the immediate future. We also had 3,109,044 shares of various classes of Convertible Preferred Stock outstanding, which can be converted to 5,185,092 shares of Common Stock. We had outstanding convertible debt with a face value of 6,778,000, which can be converted into approximately 16,221,037 shares of Common Stock. In addition, we had warrants outstanding that would permit, if exercised, the issuance of 39,927,097 additional shares of Common Stock at an average exercise price of $0.48. Issuing additional shares will result in further dilution to existing shareholders, which could be significant; meaning your percentage ownership of any such merged entity will be significantly less than your percentage ownership in us. If we issue additional shares either outright or through any future options or warrants programs or requires additional financing, further dilution in value and in the percentage ownership represented by the purchaser's investment will occur.
Risk Highlights Q2, 2019
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 27
- Share Price & Shareholder Rights - Risk 1Some of Our Markets are Cyclical.
Some of our markets are cyclical, and a decline in any of these markets could have a material adverse effect on our operating performance. Our business is cyclical and dependent on consumer and business spending and is therefore impacted by the strength of the economy generally, interest rates, and other factors, including national, regional and local slowdowns in economic activity and job markets, which can result in a general decrease in product demand from professional contractors and specialty distributors. For example, a slowdown in economic activity that results in less discretionary income for entertainment and music can have an adverse effect on the demand for some or all of our products. In addition, unforeseen events, such as terrorist attacks or armed hostilities, could negatively affect our industry or the industries in which our customers operate, resulting in a material adverse effect on our business, results of operations and financial condition.
- Share Price & Shareholder Rights - Risk 2Effect of Fluctuations in Operations on the Price of Common Stock.
Our future operating results may fluctuate and cause the price of our Common Stock to decline, which could result in substantial losses for investors. Our limited operating history makes it difficult to predict accurately our future operations. We expect that our operating results will fluctuate significantly from quarter to quarter, due to a variety of factors, many of which are beyond our control. If our operating results fall below the expectations of investors or securities analysts, the price of our Common Stock could decline significantly. The factors that could cause our operating results to fluctuate include, but are not limited to: - Ability to broadly commercialize and expand AfterMaster and/or ProMaster - Changes in entertainment technology; - Availability and cost of technology and marketing personnel; - Our ability to establish and maintain key relationships with industry partners; - The amount and timing of operating costs and capital expenditures relating to maintaining our business, operations, and infrastructure; and - General economic conditions and economic conditions specific to the entertainment industry. These and other external factors have caused and may continue to cause the market price and demand for our Common Stock to fluctuate substantially, which may limit or prevent investors from readily selling their shares of Common Stock and may otherwise negatively affect the liquidity of our Common Stock. In the past, securities class action litigation has often been brought against companies following periods of volatility in the market price of their securities. If securities class action litigation were to be brought against us, it could result in substantial costs and a diversion of our management's attention and resources, which could hurt our business.
- Share Price & Shareholder Rights - Risk 3Our Common Stock is Subject to Penny Stock Regulations.
Our Common Stock is subject to regulations of the SEC relating to the market for penny stocks. These regulations generally require that a disclosure schedule explaining the penny stock market and the risks associated therewith be delivered to purchasers of penny stocks and impose various sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors. The regulations applicable to penny stocks may severely affect the market liquidity for our Common Stock and could limit your ability to sell your securities in the secondary market.
- Share Price & Shareholder Rights - Risk 4Restrictions on Transfer - No Public Market for Preferred Shares or Restricted Common Shares.
Our shares of Common Stock are traded on the Over-The-Counter Bulletin Board System (OTCQB) under the ticker symbol AFTM. However, for shares that have been issued and are restricted pursuant to SEC Rule 144 of the Securities Act of 1933 (the "Act"), there is presently no public or private market for such shares. Such shares may only be offered or sold pursuant to registration under or an exemption from the Act and have not been registered under the Act, as amended, or any State securities laws and would be issued under Section 4(2) of the Act and Rule 506 of Regulation D promulgated under the Act.
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.