BrewBilt Brewing (BRBL) Risk Analysis
Risk Overview Q4, 2017
Source: the company's latest filing for the period ended Dec 31, 2017, filed Feb 20, 2018
Risk Change Over Time
No filing history is available.
- Share Price & Shareholder Rights - Risk 1We may be unable to continue as a going concern in which case our securities will have little or no value.
Our financial statements for the year ended March 31, 2016 were prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. We have incurred net losses since inception which raises substantial doubt about our ability to continue as a going concern. In the event we are not able to continue operations, an investor will likely suffer a complete loss of their investment in our securities.
- Accounting & Financial Operations - Risk 2In the past, we have disclosed material weakness in our internal controls and procedures. If a material weakness reoccurs, this could erode investor confidence, jeopardize our ability to obtain insurance and limit our ability to attract qualified persons to serve at Daybreak.
As of the end of the reporting period, March 31, 2016, an evaluation was conducted by the Company's management, and our Chief Executive Officer, who is also serving as our interim principal finance and accounting officer, as to the effectiveness of the design and operation of our internal controls over financial reporting pursuant to Rule 13a-15(e) of the Exchange Act. Based on that evaluation, our management concluded that our internal controls over financial reporting were not effective as of March 31, 2016. Because we fail to comply with the rules regarding internal controls and procedures, it may make it more difficult for us to obtain certain types of insurance, including director and officer liability insurance. We may be forced to accept reduced policy limits and coverage and/or incur substantially higher costs to obtain the same or similar coverage. The impact of these events could also make it more difficult for us to attract and retain qualified persons to serve on our Board of Directors, on committees of our Board of Directors, or as executive officers.
- Accounting & Financial Operations - Risk 3Because we had never earned revenues from our operations prior to March 9, 2016, our business may fail.
On March 9, 2016 the company acquired IP, Inventory, parts and distribution of Broadcast and Digital Media products, and we anticipate that we will incur increased operating expenses while realizing new revenues from this Asset Purchase. Prior to March 9, 2016 the company expected to incur significant losses into the foreseeable future, and recognized that if unable to generate significant revenues it would not be able to earn profits or continue operations. There was no history upon which to base any assumption as to the likelihood that the company would prove to be successful, and could not provide assurance that it could generate any revenues or ever achieve profitability. The company has addressed these risks, while understanding that the business would fail and investors may lose all of their investment in our company. The Asset Purchase Agreement on March 9, 2016 provided assets and revenues for the company moving forward.
Risk Highlights Q4, 2017
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 13
- Share Price & Shareholder Rights - Risk 1The market price of our Common Stock could be volatile, which may cause the investment value of our stock to decline.
Our Common Stock is quoted on the over-the-counter ("OTC") market under the symbol SIML. The OTC market is characterized by low trading volume. Because of this limited liquidity, shareholders may be unable to sell their shares at or above the cost of their purchase prices. The trading price of our shares has experienced wide fluctuations and these shares may be subject to similar fluctuations in the future. The trading price of our Common Stock may be affected by a number of factors including events described in these risk factors, as well as our operating results, financial condition, and other events or factors. In recent years, broad stock market indices, in general, and smaller capitalization companies, in particular, have experienced substantial price fluctuations. In a volatile market, we may experience wide fluctuations in the market price of our Common Stock. These fluctuations may have a negative effect on the market price of our Common Stock.
- Share Price & Shareholder Rights - Risk 2Pursuant to SEC rules our Common Stock is classified as a "penny stock" increasing the risk of investment in these shares.
Our Common Stock is designated as a "penny stock" and thus may be more illiquid than shares traded on an exchange or on NASDAQ. Penny stocks generally are any non-NASDAQ or non-exchange listed equity securities with a price of less than $5.00, subject to certain exceptions. The "penny stock" reporting and disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for a stock that is subject to these rules. The market liquidity for the shares could be severely and adversely affected by limiting the ability of broker-dealers to sell these shares.
- Share Price & Shareholder Rights - Risk 3The resale of shares offered in private placements could depress the value of the shares.
Shares of our Common Stock have been offered and sold in private placements at significant discounts to the trading price of the Common Stock at the time of the offering. Sales of substantial amounts of Common Stock eligible for future sale in the public market, or the availability of shares for sale, including shares issued upon exercise of outstanding warrants, could adversely affect the prevailing market price of our Common Stock and our ability to raise capital by an offering of equity securities.
- Share Price & Shareholder Rights - Risk 4Privately placed issuances of our Common Stock, Preferred Stock and warrants have and may continue to dilute ownership interests which could have an adverse effect on our stock prices.
Our authorized capital stock consists of 7,000,000,000 shares of Common Stock, 10,000,000 shares of Series A Preferred Stock and 10,000,000 shares of Series B Preferred Stock. As of March 31, 2017, there were 1,099,588,289 shares of Common Stock, 2,213,154 shares of Series A Preferred Stock and 1,000 shares of Series B Preferred Stock outstanding. Historically we have issued, and likely will continue to issue, additional shares of our Common Stock in connection with the compensation of personnel, future acquisitions, private-placements, and possible equity swaps for debt or for other business purposes. Future issuances of substantial amounts of these equity securities could have a material adverse effect on the market price of our Common Stock, and would result in further dilution of the ownership interests of our existing shareholders.
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.