What Nextpower Inc. told the SEC could break it.

A significant portion of the steel in Nextpower's solar-tracker products derives directly or indirectly from steel mills in China, exposing it to Chinese steel price/availability volatility.

“A significant portion of the steel used to produce our products is derived directly or indirectly from steel mills located in China.”

Nextpower faces material tariff exposure: Section 301 tariffs of 50% on Chinese CSPV cells/modules and 25% on Chinese steel, plus Section 232 and the new 10% Section 122 tariffs affecting steel/aluminum/copper supply.

“At present, Section 301 tariffs are 50% on Chinese crystalline solar photovoltaic (“CSPV”) cells and modules, 25% on Chinese steel products, 25% on Chinese parts of lead-acid storage batteries (including separators thereof) and 25% on Chinese lithium-ion non-EV batteries.”

Nextpower relies on suppliers — in certain cases on an exclusive or sole-source basis — for critical components, exposing it to capacity constraints and reduced control over availability.

“Our reliance on these suppliers, in certain cases on an exclusive or sole-source basis, makes us vulnerable to possible capacity constraints and reduced control over component availability”

Nextpower's headquarters and functional/reliability testing facilities are concentrated in the Bay Area of Northern California; a catastrophe there could disrupt operations.

“Our headquarters and testing facilities, which conduct functional and reliability testing for our components and products, are located in the Bay Area of Northern California and our solar projects are located in the U.S. and around the world.”