Renewable Energy & Power (RBNW) Risk Analysis
Risk Overview Q2, 2018
Source: the company's latest filing for the period ended Jun 30, 2018, filed Aug 20, 2018
Risk Change Over Time
No filing history is available.
- Share Price & Shareholder Rights - Risk 1Because five of our executive officers and directors maintain now have ownership of up to 51.07% 8 % of the outstanding shares of the Common Stock of the Company, they will may not have a significant degree of control our operations.
Donald MacIntyre (our Chairman, President and Chief Executive Officer) and four other officer and directors own an aggregate of 7.3 % of the outstanding shares of the Common Stock of the Company as of January 18, 2018. As a result of this ownership, they now have a significant impact in the election of our directors and have major control of our operations. However, due to common stock conversions (see below) they could loose control of the company. If their decisions are incorrect or if the Company cannot raise sufficient operating capital or sustain itself on its remaining revenues, we could go out of business and you would lose your investment.
- Accounting & Financial Operations - Risk 2The notes to our financials for the fiscal year ended September 30, 2016 2017 and 2015 2016 includes an explanatory paragraph expressing substantial doubt as to our ability to continue as a going concern.
The notes accompanying our September 30, 2017 and 2016 audited financial statements contain an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that the Company will continue as a going concern." Our ability to continue as a going concern is dependent on raising additional capital to fund our operations and ultimately on generating future profitable operations. There can be no assurance that we will be able to raise sufficient additional capital or eventually have positive cash flow from operations to address all of our cash flow needs. If we are not able to find alternative sources of cash or generate positive cash flow from operations, our business and shareholders may be materially and adversely affected.
- Debt & Financing - Risk 3We have limited working capital as of September 30, 2016, 2017, but will face significant capital requirements in the future. Since we may incur losses in the future until we are able to generate sufficient revenues to offset our expenses, investors may be unable to sell our shares at a profit or at all.
We had a net loss of $9,920,022 for the year ended September 30, 2017, a net loss of $1,151,544 for the year ended September 30, 2016. The large loss was the result of inventory write down of $283,348, an Allowance for Bad Debt of $10,000 and an increased interest expense of $493,820, primarily consisted of interest expense on indebtedness under our convertible notes and derivative expenses. Because we have not yet achieved or acquired sufficient operating capital and given these financial results together with our expected cash requirements in our immediate future, additional capital investments will be necessary to develop and sustain our operations.
Risk Highlights Q2, 2018
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 20
- Share Price & Shareholder Rights - Risk 1Because five of our executive officers and directors now have ownership of up to 8 % of the outstanding shares of the Common Stock of the Company, they may not have a significant degree of control our operations.
Donald MacIntyre (our Chairman, President and Chief Executive Officer) and four other officer and directors own an aggregate of 7.3 % of the outstanding shares of the Common Stock of the Company as of January 18, 2018. As a result of this ownership, they now have a significant impact in the election of our directors and have major control of our operations. However, due to common stock conversions (see below) they could loose control of the company. If their decisions are incorrect or if the Company cannot raise sufficient operating capital or sustain itself on its remaining revenues, we could go out of business and you would lose your investment.
- Share Price & Shareholder Rights - Risk 2Because some of our Convertible Notes have been converted to common stock by the lenders, control of the company could be taken away from the current management by outside entities.
As of the date of this filing, one company, CEDE & Company, has acquired 886,886,852 shares of our common stock through conversions of convertible notes at an unrealistic low price. Accordingly, CEDE & Company now own 92.2 % of the companies stock.
- Share Price & Shareholder Rights - Risk 3We intend to apply in the future to have our stock quoted on the OTC Bulletin Board, however, until such application is approved, our Common Stock will be traded on the Pink Sheets. Further, current penny stock regulations may impose certain restrictions on marketability of our stock.
Until such time in the future that our application to be listed on the OTC Bulletin Board is approved, our Common Stock will be traded on the Pink Sheets under the symbol "RBNW." The Pink Sheets is generally considered to be a less efficient market than markets such as NASDAQ or other national exchanges which may cause difficulty in conducting trades and difficulty in obtaining future financing. Further, our securities are subject to the "penny stock rules" adopted pursuant to Section 15 (g) of the Securities Exchange Act of 1934, as amended, or Exchange Act. The penny stock rules apply to non-NASDAQ companies whose Common Stock trades at less than $5.00 per share or which have tangible net worth of less than $5,000,000 ($2,000,000 if the company has been operating for three or more years). Such rules require, among other things, that brokers who trade "penny stock" to persons other than "established customers" complete certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading in the security, including a risk disclosure document and quote information under certain circumstances. Many brokers have decided not to trade "penny stock" because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing to act as market makers in such securities is limited. In the event that we remain subject to the "penny stock rules" for any significant period, there may develop an adverse impact on the market, if any, for our securities. Because our securities are subject to the "penny stock rules," investors will find it more difficult to dispose of our securities. Further, for companies whose securities are traded in the Pink Sheets, it is more difficult: (i) to obtain accurate quotations, (ii) to obtain coverage for significant news events because major wire services such as the Dow Jones News Service generally do not publish press releases about such companies, and (iii) to obtain needed capital.
- Share Price & Shareholder Rights - Risk 4A sale of a substantial number of shares of our Common Stock may cause the price of our Common Stock to decline.
The market price of our Common Stock could decline because of sales of substantial amounts of our Common Stock in the public market, or the perception that these sales could occur. In addition, these factors could make it more difficult for us to raise funds through future offerings of Common Stock.
- Share Price & Shareholder Rights - Risk 5Trading on the Pink Sheets may be volatile and sporadic, which could depress the market price of our Common Stock and make it difficult for our stockholders to resell their shares.
Trading in stocks quoted on the Pink Sheets is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with a Company's operations or business prospects. This volatility could depress the market price of our Common Stock for reasons unrelated to our business or operating performance. Moreover, the Pink Sheets is not a stock exchange, and trading of securities on the Pink Sheets is often more sporadic than the trading of securities listed on a quotation system like NASDAQ or a stock exchange like the American Stock Exchange. Accordingly, stockholders may have difficulty reselling any of their shares of Common Stock.
- Share Price & Shareholder Rights - Risk 6Our Common Stock price may be volatile and could fluctuate widely in price which could result in substantial losses for investors.
The market price of our Common Stock is likely to be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control, including: - technological innovations by competitors;- governmental regulation of our products and services;- additions or departures of key personnel;- decline in demand for our Common Stock; - our ability to integrate operations, technology, products and services;- our ability to execute our business plan; - operating results below expectations;- loss of any strategic relationships; - industry developments; - lack of funding generated for operations; - investor perception of our industry or our prospects;- general economic trends and other external factors; and - period-to-period fluctuations in our financial results. Because we have had limited revenues to date, you should consider any one of these factors to be material. Our stock price may fluctuate widely as a result of any of the above. In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. The market price of our Common Stock may be materially and adversely affected by these market fluctuations.
- Share Price & Shareholder Rights - Risk 7Additional issuances of equity securities may result in dilution to our existing stockholders.
Our Articles of Incorporation authorize the issuance of 1,500,000,000 shares of Common Stock may deter or delay changes in management. The Board of Directors has the authority to issue additional shares of our capital stock to provide additional financing in the future and the issuance of any such shares may result in a reduction of the book value or market price of the outstanding shares of our Common Stock. If we do issue any such additional shares, such issuance also will cause a reduction in the proportionate ownership and voting power of all other stockholders. Because of such dilution, proportionate ownership interest and voting power will be decreased accordingly. Further, any such issuance could result in a change of control. In addition, as we procure additional financing and acquire additional business assets, we will potentially grant shares, as well as warrants and stock options, to the financiers and shareholders of target companies. To the extent that additional shares are issued, notes are converted, and stock options and warrants are exercised, the shares that are issued may result in an oversupply of shares and an undersupply of purchasers, thereby diluting the market for our shares.
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