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Free Flow (FFLO) Risk Analysis

6 Followers
Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Free Flow disclosed 14 risk factors in its most recent earnings report. Free Flow reported the most risks in the “Finance & Corporate” category.

Risk Overview Q4, 2020

Source: the company's latest filing for the period ended Dec 31, 2020, filed Apr 08, 2021

Risk Distribution
14Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

No filing history is available.

Risks removedRisks addedRisks changedFree Flow Risk Factors
  • Costs - Risk 1
    Our business is a not yet stablised as there are still "thing to do" and therefore risky.

    We have not had a complete smooth year 2020; mainly due to COVID 19 that led to scarcity of skilled as well as unskilled workers. Potential investors should be made aware of the risk and difficulties encountered by a new enterprise, especially in view of the intense scarcity to find skilled workers.

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Risk Highlights Q4, 2020

Main Risk Category
Finance & Corporate
With 8 Risks
Number of Disclosed Risks
14
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
1Risks changed
Since Dec 2020
Number of Risk Changed
1
S&P 500 Average: 1

Risk Word Cloud

we will depend upon management, but we will have limited participation of management.limited participation of managementwe cannot give any assurances that we will be able to raise enough capital to fund acquisitions and product development.capital to fund acquisitionswe have a lack of long revenue history and investors cannot view our past performance since we have limited history.view our past performancebased on our current cash reserves, we will have relatively small operational budget for the operations which we cannot expand without additional raising of capital.additional raising of capitalwe have agreed to indemnification of officers and directors as is provided by delaware statute.agreed to indemnification of officerswe may in the future issue more shares which could dilute the percentage of ownership of stockholders.percentage of ownership of stockholderswe have a lack of long revenue history and investors cannot view our past performance since we have limited history.lack of long revenue historythe regulation of penny stocks by sec and finra may discourage the tradability of our securities.regulation of penny stocksbased on our current cash reserves, we will have relatively small operational budget for the operations which we cannot expand without additional raising of capital.our current cash reservesthe regulation of penny stocks by sec and finra may discourage the tradability of our securities.tradability of our securities

Risk Factors Full Breakdown - Total Risks 14

Share Price & Shareholder Rights3 | 21.4%
  • Share Price & Shareholder Rights - Risk 1
    Our stock is thinly traded and, as a result, you may be unable to sell at or near ask prices or at all if you need to liquidate your shares.

    The shares of Free Flow common stock were approved for trading on the OTC Bulletin Board on April 3, 2013, and, as result, they are thinly-traded, meaning that the number of persons interested in purchasing the Company's common shares at or near ask prices at any given time may be relatively small or non-existent. This situation is attributable to a number of factors, including the fact that the Company is a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that even if it came to the attention of such persons, they tend to be risk-averse and would be reluctant to follow an unproven, early stage company such as Free Flow or purchase or recommend the purchase of any of the Company's Securities until such time as the Company became more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in the Company's Securities is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on Securities price. We cannot give you any assurance that a broader or more active public trading market for the Company's common securities will develop or be sustained, or that any trading levels will be sustained. Due to these conditions, the Company can give investors no assurance that they will be able to sell their shares at or near ask prices or at all if they need money or otherwise desire to liquidate their securities of the Company.

  • Share Price & Shareholder Rights - Risk 2
    One of our officers and directors is a majority shareholder of the company. As such there is a possibility of him controlling the company to the detriment of outsiders.

    Mr. Saleem, President, CEO and Director, through direct and indirect ownership, is sole owner and shareholder of Redfield Holdings, Ltd. ("Redfield"), the majority shareholder of our Company. As such, he will be able to control the operations and the direction of the Company with very little outside influence. Mr. Saleem does not hold direct shares of common stock of the Company. However, as an officer, director and beneficial shareholder of Redfield Holdings, Ltd. he can vote the shares of Redfield, our majority shareholder. As such, he is the beneficial holder of the 17,990,000 common shares and 10,000 Preferred Shares - Series A, held by Redfield. Through his ownership in Redfield, Mr. Saleem controls majority of the voting stock of the Company.

  • Share Price & Shareholder Rights - Risk 3
    We may in the future issue more shares which could dilute the percentage of ownership of stockholders.

    We may issue further shares as consideration for the cash or assets or services out of our authorized but unissued common stock that would, upon issuance dilute the percentage of shares holding of shareholders.

Accounting & Financial Operations3 | 21.4%
Debt & Financing2 | 14.3%

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.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.