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Puget Technologies (PUGE)
:PUGE
Risk Overview Q3, 2020
Risk Distribution
33% Finance & Corporate
33% Legal & Regulatory
13% Tech & Innovation
13% Production
7% Ability to Sell
0% Macro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
This chart displays the stock's most recent risk distribution according to category. TipRanks has identified 6 major categories: Finance & corporate, legal & regulatory, macro & political, production, tech & innovation, and ability to sell.
Risk Change Over Time
S&P500 Average
Sector Average
Risks removed
Risks added
Risks changed
Puget Technologies Risk Factors
New Risk (0)
Risk Changed (0)
Risk Removed (0)
No changes from previous report
The chart shows the number of risks a company has disclosed. You can compare this to the sector average or S&P 500 average.
The quarters shown in the chart are according to the calendar year (January to December). Businesses set their own financial calendar, known as a fiscal year. For example, Walmart ends their financial year at the end of January to accommodate the holiday season.
The quarters shown in the chart are according to the calendar year (January to December). Businesses set their own financial calendar, known as a fiscal year. For example, Walmart ends their financial year at the end of January to accommodate the holiday season.
Risk Highlights Q3, 2020
Main Risk Category
Finance & Corporate
With 5 Risks
Finance & Corporate
With 5 Risks
Number of Disclosed Risks
15
S&P 500 Average: 31
15
S&P 500 Average: 31
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since Oct 2020
0Risks added
0Risks removed
0Risks changed
Since Oct 2020
Number of Risk Changed
0
S&P 500 Average: 3
0
S&P 500 Average: 3
See the risk highlights of Puget Technologies in the last period.
Risk Word Cloud
The most common phrases about risk factors from the most recent report. Larger texts indicate more widely used phrases.
Risk Factors Full Breakdown - Total Risks 15
Finance & Corporate
Total Risks: 5/15 (33%)Below Sector Average
Share Price & Shareholder Rights2 | 13.3%
Share Price & Shareholder Rights - Risk 1
No Independent Members of the Registrant's Board of DirectorsShare Price & Shareholder Rights - Risk 2
Trading Market for the Registrant's SecuritiesDue to the difficulties experienced by the Registrant during the past five years with reference to compliance with its reporting requirements under the Exchange Act and the demise of its business operations during 2015 (when prior management left it as a deeply indebted shell), the Registrant's securities have only traded over the Pink Open Market (operated by the OTC Markets Group), the lowest and most speculative tier of the three marketplaces for the trading of over-the-counter stocks. As the Registrant becomes current in its securities reporting requirements and begins implementation of its new business model, its management will endeavor to move trading of its securities to more closely regulated and exigent markets, aspiring by the end of 2021 to have its securities traded on the OTCQX, the top tier over the counter marketplace where many of the biggest and best over the counter companies trade. All issuers there are required to meet both financial and reporting criteria and to undergo a management review. They must also be sponsored by an accredited third-party investment bank or attorney adviser. Approximately 370 securities trade on this marketplace. If the Registrant's business plans prove as successful as management hopes, it subsequently aspires to list its securities for trading in one of the major exchanges (i.e., the NYSE or NASDAQ). Aspirations, of course, are not always realized, despite best efforts, and thus, no assurances can be provided that the Registrant will be successful in improving the markets on which its securities trade.
Accounting & Financial Operations1 | 6.7%
Accounting & Financial Operations - Risk 1
DividendsDebt & Financing2 | 13.3%
Debt & Financing - Risk 1
Need for Additional FinancingDebt & Financing - Risk 2
Dependence on Future FinancingThe proceeds currently available to the Registrant are very limited and sufficient only to start to bring the Registrant current with its reporting obligations under the Exchange Act, to discharge all debt other than that created pursuant to a proposed limited offering of up to $250,000 in debt securities (as well as up to an additional $250,000 in equity securities and up to an additional $600,000 upon exercise of conversion rights and warrants) and to seek a new management team necessary to reinitiate operations. Implementation of its ambitious development plans will require significant additional capital which the Registrant will seek during the next three years through limited or public offerings of at least $25,000,000. However, there can be no assurance that the Registrant will succeed in obtaining such additional proceeds.
Legal & Regulatory
Total Risks: 5/15 (33%)Above Sector Average
Regulation2 | 13.3%
Regulation - Risk 1
Potential Future Sales Pursuant To Rule 144.Regulation - Risk 2
Government Regulation.The Registrant is subject to applicable provisions of federal and state securities laws, especially with reference to periodic reporting requirements. Operation of a Business Development Company through a subsidiary will involve significant additional regulation as will the creation, development and funding of a SPAC. The operations of the Registrant's subsidiaries will be subject to regulation normally incident to business operations (e.g., occupational safety & health acts, workmen's compensation statutes, unemployment insurance legislation and income tax and social security related regulations). The Registrant's operations are expected to be highly dependent on its protection under and compliance with state and federal laws regulating intellectual property rights, including copyrights, patents, service marks, trademarks and trade secrets. Although the Registrant will make every effort to comply with applicable regulations, it can provide no assurance of its ability to do so, nor can it predict the effect of these regulations on its proposed activities. Failure of the Registrant to comply with applicable laws, regulations or rules of sanctioning bodies could have a materially adverse impact on the business of the Registrant.
Litigation & Legal Liabilities3 | 20.0%
Litigation & Legal Liabilities - Risk 1
Potential Conflicts of InterestLitigation & Legal Liabilities - Risk 2
Historical Failure to Comply with Reporting ObligationsSince 2015 the Registrant has been unable to comply with its reporting obligations under Sections 13 and 15(d) of the Exchange Act due to lack of resources and problems with accounting for "toxic notes" entered into by prior management. Current management has eliminated all debt under such toxic notes and the Registrant has raised funds to help correct filing deficiencies with the Commission which it intends to do in reverse chronological order as it deems the most recent information to be the most relevant. While future compliance with all legal obligations is a major priority of the Registrant's current management, no assurances can be provided, given its limited current operations that the Registrant will be financially capable of complying with its reporting obligations in the future. Failure to comply with reporting obligations to the Commission severely limits the liquidity of the Registrant's securities and subjects the Registrant to possible regulatory actions.
Litigation & Legal Liabilities - Risk 3
Limitation of Liability and Indemnification of Officers and DirectorsOfficers and directors of the Registrant are required to exercise good faith and high integrity in the management of its affairs. The Registrant's certificate of incorporation and bylaws, however, provide, that the officers and directors will have no liability to the shareholders for losses sustained or liabilities incurred which arise from any transaction in their respective managerial capacities unless they violated their duty of loyalty, did not act in good faith, engaged in intentional misconduct, knowingly violated the law, approved an improper dividend or stock repurchase, or derived an improper benefit from a transaction under their control. As a result its securities holders have more limited rights of action than he, she or it would have had if such provision were not present. The Registrant's certificate of incorporation and bylaws also provide for the indemnification by the Registrant of its officers and directors against any losses or liabilities they may incur as a result of the manner in which they operate the Registrant's business or conduct its internal affairs, provided that in connection therewith they reasonably believe them to be in, or not opposed to, the best interests of the Registrant, and their conduct does not constitute gross negligence, misconduct or breach of fiduciary obligations.
Tech & Innovation
Total Risks: 2/15 (13%)Above Sector Average
Innovation / R&D1 | 6.7%
Innovation / R&D - Risk 1
Development Stage CompanyCyber Security1 | 6.7%
Cyber Security - Risk 1
Control of the Registrant.Production
Total Risks: 2/15 (13%)Above Sector Average
Employment / Personnel2 | 13.3%
Employment / Personnel - Risk 1
GeneralEmployment / Personnel - Risk 2
Reliance upon Key PersonnelThe success of the Registrant is currently dependent upon the continuing availability of its current officers, Hermann Burckhardt and Thomas Jaspers and its relationship with its affiliate which they control, Qest. The Registrant does not currently maintain key man life insurance for anyone and there can be no guarantee that its current positive relationship with Qest will be maintained. Notwithstanding the foregoing, as disclosed in Item 1, the Registrant is currently involved in materially supplementing its management and the members of its boards of directors and advisors and in anticipation thereof, will use its best efforts to obtain officers and directors liability insurance and has adopted qualified incentive stock option plans and non-qualified incentive stock option plans in order to incentivize potential candidates. At such time as current management believes that the Registrant has recruited appropriate supplemental management, directors and advisors, its current members intend to resign and to participate with the Registrant through their roles in Qest, where current management of the Registrant also serves as officers and directors. Notwithstanding the best efforts and good faith of current management however, no assurances can be provided that its quest for replacement management will prove successful or that even if successful, replacement management, directors and advisors will perform as anticipated.
Ability to Sell
Total Risks: 1/15 (7%)Below Sector Average
Competition1 | 6.7%
Competition - Risk 1
CompetitionSee 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.