Some of the highlights I got from the 10K that I took away are printed below. I also know and have known for the last 2 years it could go south in a heart beat as they have to state in the 10k, but as Crunch mentions at this point in their development with all the time invested why bother filing the 10k if you haven’t already figured out a strategy for a path to success.
Ghasson Jabbour moving to KAUST I believe threw a wrench into the works. I think they planned to have a cell factory near ASU and Jabbour originally. They always had plans to have TQD’s made near Wong and where planning the production facility near Rice. With Jabbour gone it makes sense to use the facility near Rice now as the new headquarters. Thus,
New offices: The principal executive office of the Company will be moved in early 2011 to a new research facility to be opened in Austin, Texas.
We have confirmation something is about to happen as the company didn’t need to make this filing and obtain American Marketing Complex to do public relations. They just as easily could have stayed on the pinks.
After the filing of this Form 10-K and any quarterly reports that are past due in filing with the Securities and Exchange Commission, the Company believes that one or more broker/dealers will seek to file a 15c-211 application to have trading commence on the Bulletin Board at the earliest practicable date. It is anticipated that at that time the proposed private financing will be completed or that the Company will ask for and receive the return of the 1,700,000 shares which have not been paid for as of the filing date of this Form 10-K.
KEY MARKETS = North America, South America, Europe, the Middle East and Asia.
The two reasons this company will be very successful building growth with their products: Our initial sales strategy for both quantum dots and solar cells will be to develop and execute a value added reseller’s channel strategy and pursuing strategic alliances with companies that have established sales, marketing and distribution networks..
We perceive an opportunity to acquire a significant amount of both quantum dot and solar photovoltaic market share.
Our objective is to become the first bulk manufacture of high quality tetrapod quantum dots
The first solar cell manufacturer to be able to offer a solar electricity solution that competes on a non-subsidized basis.
The following is an outline of the business accomplishments of the Company since July 2009.
•?? Negotiated development agreement with Access2Flow with focus on adapting continuous flow microreactor process technology for the high volume production of tetrapod quantum dots.
•?? Validated first terapod quantum dot production based on Rice chemistry and micro-reactor process technology.
•?? Discovered electron collection advantages directly related to tetrapod quantum dot arm length, width aspect ratios.
•?? We have developed a method to manipulate tetrapod quantum dot arm lengths and arm widths, both separately and simultaneously.
•?? Developed method to produce tetrapod dimensions accurately and uniformly using micro reactor technology.
•?? Developed Middle East sales and marketing strategy and established office in Saudi Arabia.
•?? Developed Asian sales and marketing strategy and have begun targeted effort to established business relationships there.
•?? Developed business plan for the establishment of a Saudi Arabian based solar cell plant and began registration for the establishment of such plant.
•?? Developed proprietary process that we can file patent applications for when we raise additional financing to pay the costs of same.
As Solterra approaches this "grid parity," we believe the decision for Solterra Solar Cells will be quickly made.
Current and future applications of quantum dots impact a broad range of industrial markets.
We believe that Solterra’s licensed and proprietary technologies provide us with a number of competitive strengths that position us to become a leader in the solar energy industry and compete in the broader electric power industry:
Cost-per-Watt advantage. Our proprietary thin film technology should allow us to achieve an average manufacturing cost per watt less than $.90 and position Solterra’s cells as one of the lowest priced in the world and significantly less than the per watt manufacturing cost of crystalline silicon solar modules.
Continuous and scalable production process. We intend to manufacture our solar cells on high-throughput production lines that complete all manufacturing steps, from semiconductor printing to final assembly and testing, in an automated, proprietary, continuous process.
Replicable production facilities. We anticipate using a systematic replication process to build new production lines with operating metrics that are comparable to the performance of best of bread production lines. By expanding production, we believe we can take advantage of economies of scale, accelerate development cycles and leverage our operations, enabling further reductions in the manufacturing cost per watt of our solar cells.
Stable supply of raw materials. We will not be constrained by shortages of semiconductor material, as we will be positioned to produce our own quantum dot materials.
Pre-sold capacity through Long Term Supply Contracts. We expect to pursue Long Term Supply Contracts which, if successfully entered into, would provide us with predictable net sales and enable us to realize economies of scale from capacity expansions quickly. By pre-selling the solar cells to be produced on future production lines, we intend to minimize the customer demand risk of our expansion plans.
Favorable system performance. Under real-world conditions, including variation in ambient temperature and intensity of sunlight, we believe systems incorporating our solar cells will generate more kilowatt hours of electricity per watt of rated power than systems incorporating crystalline silicon solar modules, increasing our end-users’ return on investment. Solterra solar cells successfully blend the needs for efficiency, low cost, and time to recoup investment. Furthermore, the solar panels will be easy to install due to their flexibility and low weight.
This is the first mention from the company about residential use:
Classic PV installed cost is approximately $0.50/kWh, and today’s least expensive residential PV systems still cost approximately $0.38/kWh, the cells produced by Solterra are expected to provide electricity in the $0.08 - $0.14/kWh range. This translates into a cost saving of 66% under the cost of the current least expensive residential PV systems.
On the flip side are utilities:
The grid-tied Photovoltaic systems has become the largest growing segment. An appealing aspect of the potential large projects is that a large project can represent the sales volume in one transaction that might require hundreds of individual transactions for residential Photovoltaic solar applications and successfully obtaining these contracts can help us obtain other customer contracts.
Thus the reason for the following:
Our initial target in the Middle East will be large solar power generation facilities to provide production economies of scale, marketing efficiencies, and rapid penetration into the broader market for photovoltaic production.
After it’s all said and done I think we are in for some eye opening developments. I still support a buy and hold approach on this company. This isn’t the stock for the day trader because once he takes his short term total profits if he looks back several years from now he might just say, what was I thinking, for the pittance I had invested that would now be……..
Do your DD for those new.
Having a Bermudaful day on vacation!
Bill
