Natcore Technology Inc (OTCMKTS:NTCXF) is big news in the market right now. With the recent news of its solar cell invention, the firm has become the toast of investors and analysts. In this piece, we provide details of its new invention and the possible outlook for the firm’s future.
Take a look at the stock’s price movement below:
Natcore Technology, Inc. was established by John Calhoun, Andrew Barron, Brien Lundin and Dennis J. Flood In August 2007 and its head office is located in Rochester, New York. The firm is a research and development company, which specializes in the development of silicon solar cell technologies. The firm’s leading product is Natcore Foil Cell, which removes the need to utilize highly expensive silver in large volume-manufactured silicon solar cells.
In March 2018, Natcore Technology Inc. was successful in its attempt to completely streamline the fabrication technique for its groundbreaking Natcore Foil Cell™, permitting for less expensive production methods.
The utilization of laser processing in creating the firm’s innovative, all-back-contact cell system has been disregarded and replaced by a selective carrier contact method. This is joined with a foil metallization that can be developed at a reduced price using its high-speed roll-processing techniques.
These improvements have enhanced the 2 essential benefits of Natcore’s Foil Cell which are the possibility for very high efficiency within an inexpensive production cell. The silicon heterojunction framework of Natcore’s Foil Cell is the same simple configuration utilized in achieving the globally recognized silicon cell efficiencies which are above twenty-six percent by leading producers in investigational solar cells as well as the elimination of high-cost silver. The firm’s foil cell acts a substitute for silver, which eliminates the high material costs and complex production processes associated with the use of silver. Rather, the foil cell is simply made of aluminum.
At a cost which is 0.3% the rate for silver, aluminum permits for more amounts of metal to be utilized in maintaining conductivity, while also allowing for high-volume, high-speed of materials processing and handling.
However, Natcore’s use of pre-fabricated foils in its production process will enable reduced costs of manufacturing large amounts of similar all-back-contact, ultra-high efficiency solar cells.
Natcore’s target is to attain over twenty-five percent real-world efficiency in the eventual production of solar cells, which will be a 25% improvement in its performance above other high-end commercial cells which are commonly used.
Chairman of Natcore, Brien Lundin highlighted the high level of competition in the solar industry, quoting research which revealed that firms within the industry have not been able to attain a performance improvement of 0.6% yearly in their bid to survive.
However, it is anticipated that Natcore’s Foil Cell will signify a generational jump in performance metrics, its management is confident that leading industry participants will quickly join in enhancing its technology to market.
Very recently, Natcore commenced an accelerated development program with a purpose to develop a prototype using the new process, which will also reflect the efficiency and production cost modeling as done by independent authorities.
The outcome is likely to be a functional prototype demonstrating the critical production procedure, along with results proving the cost savings benefits and extremely high-efficiency promise of this innovation. The firm also intends to pursue partnerships with key industry players in a bid to quickly commercialize this technology. It is anticipated that the development of the prototype will play a critical role in this process.
For 2016, there no revenues reported, a trend which has been so from as far back as 2014. It is expected that in years to come, the firm will move out of this growth phase and generate revenues from the sale of its products.
In the same period, operating expenses fell by 48%, an indicator that the firm may have improved its operational efficiency. As there was no operating income, operating loss for the year was recorded at $3.9 million. It should be noted that it is a regular trend for developing companies to be unable to generate revenues while still incurring costs in the growth years.
Net loss for the year was $2.0 million, a drop from the prior year loss of $3.5 million with the income statement consisted mostly of its operating expenses for the year.
The statement of financial position reveals that the firm is not highly geared. On its books, its total debt is worth just $1.6 million, resulting in a low debt-to-equity ratio. Worryingly, it also has a very low liquidity ratio of 0.06
The success of NTCXF’s innovation is already probable and is likely to provoke a positive reaction from the market.
Disclosure: We have no position in NTCXF and have not been compensated for this article.