xPlore Technologies

Kurta Law is investigating broker recommendations of xPlore Technologies (NASDAQ: XPLR). These investments were high-risk and may have been unsuitable for many investors. Unsuitable investments violate FINRA Rule 2111, which requires brokers to consider their investor’s risk tolerance. Regulation Best Interest also requires brokers to exercise reasonable care and skill when they make recommendations.

If a broker recommended unsuitable investments to you, you may have a case for a securities lawyer. Call (877) 600-0098 or email info@kurtalawfir.com for a free case evaluation.

About xPlore Technologies

According to the prospectus, xPlore Technologies develops “rugged, mobile computing systems” to be used in “challenging work environments” with extreme temperatures and dirty, wet, or dusty conditions.

The Offering

The offering dated October 25, 2012, announced that xPlore Technologies was offering 2,000,000 shares of common stock for $5.00 per share. Its stock has since been delisted from the stock exchange.

Risks Associated with xPlore Technologies Investments

The prospectus states, “Investing in our securities involves a great deal of risk. There are many risks that affect our business and results of operations, some of which are beyond our control.” The following are just some of the risks Kurta Law has chosen to highlight. For the complete list, see the prospectus.

History  of Losses

xPlore Technologies disclosed that it had a history of net losses and may incur additional losses.

Large Percentage of Business from Single Customer

In the fiscal year 2012, approximately 37% of the company’s revenue was derived from one customer. If it is unable to replace revenue generated from one of the major resellers or end-use customers, the revenue may materially decline.

Lengthy Sales Cycles

xPlore Technologies experiences lengthy sales cycles for products and the delay of a large order could result in a significant, unexpected revenue shortfall.

Dependency on a Manufacturer

At the time of the prospectus, xPlore Technologies was dependent on Wistron Corporation to manufacture its products. Its reliance on this company subjects it to significant operational risks.

Competition from Companies with Greater Resources

xPlore Technologies discloses that it operates in a highly competitive industry. Its competitors have greater resources and xPlore Technologies may not be able to effectively compete against these companies.

Key Components

If xPlore Technologies is unable to acquire key components or is unable to acquire them on favorable terms, the business would suffer.

Aegis Capital Corp. Underwriting  

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Kurta Law Can Help

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.