Solaris Power Cells, Inc. (NASDAQOTH:SPCL)

CAPS Rating: No stars

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Member Avatar jed71 (42.20) Submitted: 4/11/2014 3:00:17 PM : Underperform Start Price: $0.54 SPCL Score: +93.46

Another long term easy down thumb. My only concern here is I picked this stock right at the $.50 level and when it was already down 17% on the day. I normally get beaten up the next few days afterward as the stock dead cat bounces. I do believe long term, this stub is going to move close to zero. The reason I didn’t wait to make the pick is I don’t think this is going to be selectable after today as the price and volume are quite low. It meets Caps criteria for now, but who knows for how much longer.

Multiple business plans, multiple attempts at establishing a product:

“We were formed as a Nevada corporation, Rolling Technologies, Inc., on July 27, 2007. On August 12, 2013, we changed our name to Solaris Power Cells, Inc. Effective August 12, 2013, we effected a 24 for 1 forward stock split of our authorized, and issued and outstanding shares of common stock. Our authorized common stock increased from 90,000,000 shares of common stock to 2,160,000,000 shares of common stock, and our issued and outstanding capital increased from 2,150,000 shares of common stock to 51,600,000 shares of common stock. As of March 28, 2014, we had 62,830,000 common shares issued and outstanding. All references to shares of our common stock are on a post-split basis. We are a development stage company and have not generated any sales to date. We are in the business of developing our energy storage device. We do not have any contracts in place relating to the manufacturing, development, or sales of our future products. We are developing a renewable energy storage device, known as a passive electron storage array, to market to residential and commercial industrial users.”

So they were selling car carriers and have moved on to fancy batteries. The stock was trading under a different symbol and the company has recently changed names.

“Solaris Power Cells, Inc., formerly Rolling Technologies, Inc., is a development-stage company. The Company is in the business of developing, producing and marketing a portable car top carrier. Its product is still in the development-stage and is not yet ready for commercial sale. Its product is being designed specifically for the Asian market. The Company's product has two support frames, an outer and an inner frame, to provide the structure and strength of a traditional box carrier. As of July 31, 2012, the Company had no revenue.”

Quick Financials (5 months ended and as of 12/31/2013 - 10-K) :
Cash : $151K
Total Assets : $259K
Revenues : $0
Op Expenses : ($411K) for 5 months!!!!
Accumulated Deficit : ($3.2MM)
Market Cap : $35MM

Another interesting section in the 10-K:
“We do not own, either legally or beneficially, any patents or trademarks. We currently rely on trade secrets to protect our intellectual property. We have filed a provisional Patent Application with the United States Patent & Trademark Office (USTPO) and have received Patent Application Serial Number 61,885,027 as described under section 37 CFR 1.53(c) . We have filed with the United States Patent & Trademark Office (USPTO) a logo design and corporate name trademark and have received Trademark Serial Numbers 86,079,166 and 86,079,169.”

I am not a patent expert, but it scares me that they do not have a patent for their battery system that they claim is revolutionary. I guess a patent application is better than nothing?

“We anticipate that our cash on hand will not be sufficient to satisfy all of our cash requirements for the next twelve month period. We currently do not have committed sources of additional financing and may not be able to obtain additional financing, particularly, if the volatile conditions in the stock and financial markets persist.”
Burning $411K in a five month period with remaining cash at $151K? Yeah, I think it’s a bit of an understatement to say that you have insufficient cash. I really don’t like this one at all.

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