NanoFlex Power risk analysis
NanoFlex Power (OPVS) Risk Analysis
Risk Overview Q4, 2019
Source: the company's latest filing for the period ended Dec 31, 2019, filed Mar 16, 2020
Risk Change Over Time
No filing history is available.
- Share Price & Shareholder Rights - Risk 1An investment in the Company's our common stock is extremely speculative and there can be no assurance of any return on any such investment.
An investment in our common stock is extremely speculative and there is no assurance that investors will obtain any return on their investment. Investors will be subject to substantial risks involved in an investment in our common stock, including the risk of losing their entire investment. The market price of our common stock is subject to significant fluctuations in response to variations in our quarterly operating results, general trends in the market and other factors, many of which we have little or no control over. In addition, broad market fluctuations, as well as general economic, business and political conditions, may adversely affect the market for our common stock, regardless of our actual or projected performance.
- Accounting & Financial Operations - Risk 2The Company has We have incurred, and expects expect to continue to incur, significant losses as we seek to commercialize our technologies.
Our operating subsidiary was incorporated under the laws of the Commonwealth of Pennsylvania in February 1994. We have been a development-stage company since that time and have only generated limited revenues to date. Since our incorporation we have incurred significant losses. We expect that our expenditures will increase to the extent we seek to continue to develop strategic partnerships to commercialize our products. We expect these losses to continue until such time, if ever, as we are able to generate sufficient revenues from the commercial exploitation of our high efficiency and organic photovoltaics ("OPV") technologies to support our operations. Our high efficiency and OPV technologies may never be incorporated in any commercial applications. We have encountered and will continue to encounter risks and difficulties frequently experienced by early, commercial-stage companies in rapidly evolving industries. If we do not address these risks successfully, our business will suffer. We may never be profitable. We may be unable to satisfy our obligations solely from cash generated from operations. If, for any reason, we are unable to make required payments under our obligations, one or more of our creditors may take action to collect their debts. If we continue to incur substantial losses and are unable to secure additional financing or secure financing on terms that are favorable to us, we could be forced to discontinue or further curtail our business operations; sell assets at unfavorable prices; refinance existing debt obligations on terms unfavorable to us; or merge, consolidate or combine with a company with greater financial resources in a transaction that may be unfavorable to us.
- Debt & Financing - Risk 3We are presently solely dependent on raising capital to maintain the our Company, our patent portfolio, research and development activities and efforts to commercialize our technologies.
We are currently in the development stage and have not yet commercialized any of our technologies nor have we licensed any of our technologies other than our Agreement with SolAero, as discussed above, or sold any products, and have only generated limited revenues and are solely dependent on raising capital to fund our operations. We currently need to raise capital in order to maintain our operations, our patent portfolio, research and development activities and efforts to commercialize our technologies, as well as to pay our approximately $4.1 million in outstanding accounts payable and accrued liabilities as of December 31, 2018. There can be no assurance that we will be able to raise the capital that we need or that if we can, that it will be available on terms that are acceptable to us or our shareholders or which would not substantially dilute existing shareholders' interests. If we fail to raise sufficient capital, we will be unable to maintain our Company or our patents or commercialize our technologies which may result in a total loss of our shareholders' investments.
Risk Highlights Q4, 2019
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 40
- Share Price & Shareholder Rights - Risk 1We have entered into convertible note transactions which contain variable conversion prices which could result in substantial dilution to our shareholders.
As disclosed in our filings with the Securities and Exchange Commission, we have entered into a number of financing transactions in which we have sold convertible notes which, if not paid by the stipulated maturity date, can convert into shares of our common stock at a significant discount to the market price. In connection with each of these transactions, we have been required to reserve a significant number of shares for conversion with our transfer agent in the event that conversion occurs. For instance, in a transaction on August 15, 2019 for a $75,000 convertible note, we reserved 15,000,000 shares of our common stock. While we plan to repay each of these convertible notes prior to maturity, and in fact have paid off previous notes with similar terms, there can be no assurance that monies will be available to do so as we need to raise additional capital. In the event any of these notes are converted by their holders and such holders sell our common stock in the market, it is anticipated that this will result in a substantial decrease in our stock price and substantial dilution to our shareholders as a result of the discounted prices at which the holders will obtain our common stock. The more stock that is sold by a holder of these notes, the more likely it is that our stock price will be substantially lowered by such selling activity as the market for our common stock is not well developed or active.
- Share Price & Shareholder Rights - Risk 2An investment in our common stock is extremely speculative and there can be no assurance of any return on any such investment.
An investment in our common stock is extremely speculative and there is no assurance that investors will obtain any return on their investment. Investors will be subject to substantial risks involved in an investment in our common stock, including the risk of losing their entire investment. The market price of our common stock is subject to significant fluctuations in response to variations in our quarterly operating results, general trends in the market and other factors, many of which we have little or no control over. In addition, broad market fluctuations, as well as general economic, business and political conditions, may adversely affect the market for our common stock, regardless of our actual or projected performance.
- Share Price & Shareholder Rights - Risk 3Our shares are subject to the Securities and Exchange Commission's "penny stock" rules that limit trading activity in the market, which may make it more difficult for our shareholders to sell their common stock.
Penny stocks generally are equity securities with a price of less than $5.00. Since our common stock is trading at less than $5.00 per share, we are subject to the penny stock rules adopted by the Securities and Exchange Commission that require broker-dealers to deliver extensive disclosure to its customers prior to executing trades in penny stocks not otherwise exempt from the rules. The broker-dealer must also provide its customers with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held by the customer. Under the penny stock regulations, a broker-dealer selling a penny stock to anyone other than an established customer or accredited investor must make a special suitability determination regarding the purchaser and must receive the purchaser's written consent to the transaction prior to the sale, unless the broker-dealer is otherwise exempt. Generally, an individual with a net worth in excess of $1,000,000, or annual income exceeding $200,000 individually, or $300,000 together with his or her spouse, is considered an accredited investor. The additional burdens from the penny stock requirements may deter broker-dealers from effecting transactions in our securities, which could limit the liquidity and market price of our securities. These disclosure requirements may cause a reduction in the trading activity of our common stock, which likely would make it difficult for our stockholders to resell their securities.
- Share Price & Shareholder Rights - Risk 4In order to raise sufficient funds to expand our operations, we may have to issue additional securities at prices which may result in substantial dilution to our shareholders.
As we raise additional funds through the sale of equity or convertible debt, our current stockholders' percentage ownership will be reduced. In addition, these transactions may dilute the value of our securities outstanding. We may have to issue securities that may have rights, preferences and privileges senior to our common stock. We cannot provide assurance that we will be able to raise additional funds on terms acceptable to us, if at all. If future financing is not available or is not available on acceptable terms, we may not be able to fund our future needs, which would have a material adverse effect on our business plans, prospects, results of operations and financial condition.
- Share Price & Shareholder Rights - Risk 5Our shareholders' percentage of ownership may become diluted upon conversion of our convertible promissory notes, upon the exercise of currently outstanding warrants, or upon the issuance of new shares of stock or other securities, including issuances to consultants as compensation.
As of December 31, 2019, there were outstanding warrants to purchase 76,890,018 shares of our common stock. Furthermore, as of December 31, 2019, outstanding warrants to purchase a total of 6,608,330 shares of our common stock had and continue as of the date of this report to have anti-dilution provisions and the exercise price of such warrants will be automatically reduced to a lower price if we issue securities in a subsequent offering at a price which is less than each such warrant's then-effective exercise price. In addition, as of December 31, 2019, we had outstanding options to purchase 300,000 shares of our common stock, with a weighted average exercise price of $0.52 per share, and convertible notes outstanding in the aggregate amount of $7.5 million, with a conversion prices ranging from $0.10 to $0.25 per share. We may enter into additional agreements with independent contractors, consultants, and other unaffiliated third parties for services and compensation which may be payable in equity. The conversion of outstanding debt, the exercise of outstanding warrants, and the issuance of new securities could result in significant dilution to existing stockholders. Additionally, securities issued in connection with future financing activities or any potential acquisitions could have preferences and rights senior to the rights of common stock.
- Share Price & Shareholder Rights - Risk 6There has been a limited trading market for our common stock and an active trading market for our common stock may not ever develop which may impair your ability to sell your shares
Our common stock is quoted on the OTCQB Marketplace ("OTCQB"), under the symbol "OPVS". The OTCQB is an electronic quotation system that displays real-time quotes, last-sale prices, and volume information for many over the counter securities that are not listed on a national securities exchange. Trading volume for our common stock has been limited and OTCQB quotations for our common stock price may not represent the true market value of our common stock. There is a limited trading market for our common stock in the over-the-counter market. The lack of an active market will impair your ability to sell your shares at the time you wish to sell them or at a price that you consider reasonable. The lack of an active market will also reduce the fair market value of your shares. An inactive market may also impair our ability to raise capital by selling shares of capital stock and may impair our ability to acquire other companies or technologies by using common stock as consideration.
- Share Price & Shareholder Rights - Risk 7If equity research analysts do not publish research or reports about our business, or if they issue unfavorable commentary or downgrade our common stock, the market price of our common stock and warrants will likely decline.
The trading market for our common stock and warrants will rely in part on the research and reports that equity research analysts, over whom we have no control, publish about us and our business. We may never obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of our Company, the market price for our common stock and warrants could decline. In the event we obtain securities or industry analyst coverage, the market price of our common stock and warrants could decline if one or more equity analysts downgrade our common stock or if those analysts issue unfavorable commentary, even if it is inaccurate, or cease publishing reports about us or our business.
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.
