Risk Disclosures
LAST UPDATED: NOVEMBER 24, 2025
IMPORTANT NOTICE: Investing in early-stage DeepTech startups involves a high degree of risk. You should not invest any funds unless you can afford to lose your entire investment. The following risks are not exhaustive.
1. Technology & Development Risks
TorrideX is developing a novel energy generation system based on radioisotope decay and plasma physics (the "Technology"). While the underlying physical principles are established, the integration into a commercially viable, solid-state modular unit is experimental.
- Prototyping Failures: There is no guarantee that laboratory results will translate effectively to mass-produced units. Issues with plasma stabilization, material degradation under ionization, or induction efficiency may arise.
- Timeline Delays: R&D in nuclear technology often encounters unforeseen engineering hurdles that can delay product launch by years.
- Efficiency Targets: The projected power output (10W - 3kW) depends on high-efficiency conversion which has yet to be proven at scale.
2. Regulatory & Legal Risks
The core component of the TorrideX generator involves radioactive isotopes (e.g., Americium-241, Strontium-90). This sector is heavily regulated.
- Licensing: Manufacturing and selling these devices requires approval from bodies such as the U.S. Nuclear Regulatory Commission (NRC), the International Atomic Energy Agency (IAEA), and local environmental agencies. Denial or delay of these licenses would be fatal to the business model.
- Export Controls: Dual-use technology laws may restrict our ability to sell generators to certain countries or entities, limiting our Total Addressable Market (TAM).
- Changing Legislation: Nuclear safety laws can become stricter, potentially increasing compliance costs significantly.
3. Supply Chain & Isotope Availability
Our generators require a steady supply of specific radioisotopes.
- Sourcing: These isotopes are typically byproducts of nuclear reactor operations. A global shortage, geopolitical instability, or shutdown of processing facilities could halt production.
- Price Volatility: The market price for isotopes like Am-241 is not fixed and can fluctuate wildly, impacting the final cost of our units.
4. Market & Adoption Risks
Even if the technology works perfectly, market acceptance is not guaranteed.
- Public Perception: "Radiophobia" (fear of radiation) may hinder adoption, even if the device is technically safe. Public opposition could block installations in residential or commercial zones.
- Competition: We compete with solar (photovoltaic), hydrogen fuel cells, and traditional RTGs. Rapid advancements in battery storage or fusion energy could render our technology obsolete.
5. Environmental & Safety Risks
While designed with multiple containment layers, the risk of containment breach cannot be theoretically reduced to zero.
- Accidents: In the event of catastrophic mechanical destruction (e.g., rocket launch failure, severe crushing), there is a residual risk of isotope release, which could lead to environmental cleanup liabilities.
- Disposal: End-of-life disposal of the units requires specialized recycling infrastructure, the cost of which TorrideX may need to bear.
6. Financial Risks
TorrideX is a pre-revenue company.
- Future Dilution: We will likely need to raise significant additional capital. Future equity issuances may dilute the ownership percentage of early investors.
- Liquidity: Investments in private startups are illiquid. There is no secondary market for TorrideX shares, and you may be unable to sell your shares for an indefinite period.
This document does not constitute legal or financial advice. Potential investors are strongly encouraged to conduct their own due diligence and consult with professional advisors before making any investment decision.