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CDTi Advanced Materials (CDTI) Risk Analysis
Risk Overview Q3, 2018
Source: the company's latest filing for the period ended Sep 30, 2018, filed Nov 14, 2018
Risk Change Over Time
No filing history is available.
- Share Price & Shareholder Rights - Risk 1We could be delisted from NASDAQ, which could seriously harm the liquidity of our stock and our ability to raise capital.
During 2016, we received two separate notifications from the Listing Qualifications staff of The NASDAQ Stock Market LLC indicating that we no longer met the requirements to maintain a minimum bid price of $1 per share and a minimum stockholders' equity of $2.5 million. We remedied both deficiencies by August 30, 2016 and regained compliance with NASDAQ's requirements for continued listing on the exchange. On May 10, 2018, we received a notification from the Listing Qualifications staff of The NASDAQ Stock Market LLC indicating that we no longer met the requirements to maintain a minimum bid price of $1.00 per share. In an effort to cure the closing bid price deficiency, our Board of Directors approved a one-for-five reverse stock split of all issued and outstanding shares of our common stock, and our stockholders approved the reverse split at our annual meeting of stockholders on August 24, 2018. On September 21, 2018, the Company effected a one-for-five reverse stock split. On October 9, 2018, we received a letter from the Listing Qualifications staff of The NASDAQ indicating that from September 24, 2018 to October 8, 2018, the closing bid price of our common stock had been at $1.00 per share or greater, and as such, we had regained compliance with minimum bid price requirement and the matter was now closed. There can be no assurance that we will be able to maintain compliance with the minimum bid price requirement or otherwise be in compliance with other NASDAQ listing criteria. Losing our NASDAQ listing ould materially harm our ability to raise capital, by, among other things, negatively affecting the market liquidity of our common stock. Investors would likely find it more difficult to purchase, dispose of or obtain accurate quotations as to the market value of our common stock, and the price of our common stock may be adversely affected. Delisting from NASDAQ could also result in negative publicity and a loss of confidence by investors, customers, suppliers or employees.
Risk Highlights Q3, 2018
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 37
- Share Price & Shareholder Rights - Risk 1ChangedWe could be delisted from NASDAQ, which could seriously harm the liquidity of our stock and our ability to raise capital.
During 2016, we received two separate notifications from the Listing Qualifications staff of The NASDAQ Stock Market LLC indicating that we no longer met the requirements to maintain a minimum bid price of $1 per share and a minimum stockholders' equity of $2.5 million. We remedied both deficiencies by August 30, 2016 and regained compliance with NASDAQ's requirements for continued listing on the exchange. On May 10, 2018, we received a notification from the Listing Qualifications staff of The NASDAQ Stock Market LLC indicating that we no longer met the requirements to maintain a minimum bid price of $1.00 per share. In an effort to cure the closing bid price deficiency, our Board of Directors approved a one-for-five reverse stock split of all issued and outstanding shares of our common stock, and our stockholders approved the reverse split at our annual meeting of stockholders on August 24, 2018. On September 21, 2018, the Company effected a one-for-five reverse stock split. On October 9, 2018, we received a letter from the Listing Qualifications staff of The NASDAQ indicating that from September 24, 2018 to October 8, 2018, the closing bid price of our common stock had been at $1.00 per share or greater, and as such, we had regained compliance with minimum bid price requirement and the matter was now closed. There can be no assurance that we will be able to maintain compliance with the minimum bid price requirement or otherwise be in compliance with other NASDAQ listing criteria. Losing our NASDAQ listing ould materially harm our ability to raise capital, by, among other things, negatively affecting the market liquidity of our common stock. Investors would likely find it more difficult to purchase, dispose of or obtain accurate quotations as to the market value of our common stock, and the price of our common stock may be adversely affected. Delisting from NASDAQ could also result in negative publicity and a loss of confidence by investors, customers, suppliers or employees.
- Share Price & Shareholder Rights - Risk 2The risk of dilution, perceived or actual, may contribute to downward pressure on the trading price of our stock.
We have outstanding warrants and stock options to purchase shares of our common stock, and additional shares or warrants or options to acquire shares of our common stock may be issued in the future. At December 31, 2017, we had outstanding options and warrants to purchase an aggregate of approximately 1.9 million shares of our common stock. The exercise of these securities will result in the issuance of additional shares of our common stock. We may also issue additional shares of our common stock or securities exercisable for or convertible into shares of our common stock, whether in the public market or in a private placement to fund our operations, or as compensation. These issuances, particularly where the exercise price or purchase price is less than the current trading price for our common stock, could be viewed as dilutive to the holders of our common stock. To provide us with additional flexibility to access capital markets for general corporate purposes, we filed a shelf registration statement which was declared effective by the SEC on November 17, 2015. The shelf registration statement permits us to sell, from time to time, up to an aggregate $50.0 million of various securities, including common stock, preferred stock, warrants to purchase common stock or preferred stock and units consisting of one or more of the foregoing or any combination of such securities, not to exceed one-third of our public float in any 12-month period. As of December 31, 2017, we had sold an aggregate of $3.1 million using the shelf registration statement. To the extent that we raise additional capital by issuing equity securities under our shelf registration statement, our stockholders may experience dilution. The risk of dilution, perceived or actual, may cause existing stockholders to sell their shares of stock, which could contribute to a decrease in the price of shares of our common stock. In that regard, downward pressure on the trading price of our common stock may also cause investors to engage in short sales, which could further contribute to downward pressure on the trading price of our stock.
- Share Price & Shareholder Rights - Risk 3There has been and may continue to be significant volatility in the volume and price of our common stock on the NASDAQ Capital Market and an investment in our stock could suffer a decline in value.
Our stock historically has experienced high levels of volatility. The trading price of our common stock may continue to fluctuate substantially, depending on many factors, some of which are beyond our control and may not be related to our operating performance. These fluctuations could cause you to lose all or part of your investment in our common stock. Factors that could cause fluctuations in the trading price of our common stock include, but are not limited to, the following: - fluctuations in demand for our products;- product development efforts;- the loss of any customer relationship;- the addition of a new customer relationship;- mergers and acquisitions involving us, our customers or our competitors;- price and volume fluctuations in the overall stock market from time to time;- fluctuations in the trading volume of our shares or the size of our public float;- actual or anticipated changes or fluctuations in our results of operations;- whether our results of operations meet the expectations of securities analysts or investors;- actual or anticipated changes in the expectations of investors or securities analysts;- litigation involving us, our industry, or both;- regulatory developments in the United States, foreign countries, or both;- general economic conditions and trends;- major catastrophic events;- sales of large blocks of our common stock;- departures of key employees; or - an adverse impact on the company from any of the other risks cited herein. In addition, if the stock market, in general, experiences a loss of investor confidence, the trading price of our common stock could decline for reasons unrelated to our business, results of operations or financial condition. The trading price of our common stock might also decline in reaction to events that affect other companies in our industry even if these events do not directly affect us. Securities class action litigation has often been instituted against companies following periods of volatility in the overall market and in the market price of a company's securities. We may be the target of securities-related litigation, which could divert our management's attention and resources, result in substantial costs, and have an adverse effect on our business, results of operations and financial condition.
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