Business Context and Reporting Period
Company: R&R Acquisition VI, Inc. (Note: Input metadata referenced "ADMA BIOLOGICS, INC.", but the filing text identifies the registrant as R&R Acquisition VI, Inc.)
Reporting Period: Fiscal year ended June 30, 2010.
Business Model: The registrant is a "blank check" shell company and a development-stage enterprise. It has no specific business plan other than to investigate and acquire a target company to achieve long-term growth. The company has no employees, no operating history, and no revenues.
Key Financial Metrics
| Metric | 2010 | 2009 |
|---|---|---|
| Revenue | $0 | $0 |
| Total Operating Expenses | $20,526 | $20,009 |
| Net Loss | $(20,526) | $(20,009) |
| Cash and Cash Equivalents | $12,012 | $8,688 |
| Working Capital | $(346) | $(2,820) |
| Accrued Expenses (Liabilities) | $12,358 | $11,508 |
| Stockholders' Equity (Deficit) | $(346) | $(2,820) |
Liquidity: The company relies on capital contributions from stockholders and management to fund operations. As of June 30, 2010, cash on hand was $12,012. The company reported negative working capital of $346.
Material Changes vs. Prior Period
- Expenses: Total operating expenses increased slightly from $20,009 in 2009 to $20,526 in 2010. This increase is attributed to a general rise in professional and administrative fees.
- Cash Position: Cash and cash equivalents increased by $3,324, from $8,688 to $12,012, primarily due to a $23,000 capital contribution from a stockholder during the period.
- Accumulated Deficit: The accumulated deficit during the development period increased to $(113,596) from $(93,070).
Outlook, Risks, and Management Commentary
Outlook: Management's primary objective for the next 12 months is to locate a suitable acquisition or merger candidate. The company expects to have sufficient proceeds for only a single business combination. There are no definitive agreements with any prospective targets.
Risks and Contingencies:
- Going Concern: The company has no operating history or revenue. Success is entirely dependent on consummating a business combination. There is no assurance that a suitable target will be found.
- Management Commitment: Officers devote less than 10% of their time to the company's affairs, which may adversely impact the ability to identify a target.
- Conflicts of Interest: Management may receive compensation from a target company, creating potential conflicts with stockholders. Officers are also involved with other blank check offerings.
- Dilution: Future mergers may result in the issuance of additional securities without stockholder approval, causing substantial dilution.
- Regulatory: The company faces risks regarding classification as an "investment company" under the Investment Company Act of 1940.
Investor Verification Checklist
- Capital Adequacy: Verify if the current cash balance of $12,012 is sufficient to sustain operations for the next 12 months without additional funding.
- Related Party Transactions: Confirm the terms of the $500 quarterly office occupancy fee paid to an entity managed by the CFO and the $23,000 capital contribution from the parent company of the majority stockholder.
- Management Focus: Assess the risk associated with officers devoting less than 10% of their time to the company while managing multiple other shell companies.
- Stock Ownership: Note that R&R Investments VI, LLC beneficially owns 80% of the outstanding common stock, giving them control over major corporate decisions.
- Market Status: Confirm there is no public trading market for the company's common stock and no dividends are expected.