Bone Biologics Corp — filing summary
Important identity and period issue: The supplied filing is for AFH Acquisition X, Inc., not Bone Biologics Corp. It reports the quarter ended July 31, 2011 (the company’s fiscal third quarter), and was signed September 14, 2011. The filing describes AFH as a development-stage, blank-check company wholly owned by AFH Holding & Advisory, LLC. The figures below are AFH’s, not identified as Bone Biologics’.
Business context
AFH reported no active operations apart from seeking a company or technology to acquire, and stated it was not negotiating with a target at the reporting date. It had generated no revenue since its October 18, 2007 inception.
Financial results and liquidity
| Metric | Three months ended July 31, 2011 | Nine months ended July 31, 2011 | Prior-year comparable |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Total expenses | $725 | $2,802 | $731 and $2,762, respectively |
| Net loss | $725 | $3,202 | $731 and $2,887, respectively |
| Loss per share | $0.00 | $0.00 | $0.00 for both comparable periods, as reported |
| Operating cash flow | Not separately presented | $0 | $(5,681) for the nine months ended July 31, 2010 |
At July 31, 2011, cash and total assets were $0. Liabilities were $27,250, comprising $6,799 accrued expenses and $20,451 due to the parent; stockholders’ deficit was $27,250. The parent advance had no stated repayment terms. The company reported no debt securities or interest expense, but its $20,451 parent balance is a liability.
For the nine months, the net loss increased by $315 from the prior-year period. The filing reports no gross profit or operating margins because there was no revenue. Accumulated deficit was $52,250 at July 31, 2011, versus $49,048 at October 31, 2010.
Outlook, risks, and other disclosures
- Management said continued existence depended on raising capital or acquiring a marketable company. The going-concern note cites recurring operating losses and states that the financial statements include no adjustments that might be needed if the company could not continue.
- AFH said it would rely on common-stock issuance and additional shareholder contributions to fund administrative expenses. It cautioned that equity funding was not assured and that an acquisition could substantially dilute existing shareholders.
- No revenue was expected absent a merger or acquisition; no assurance of a successful target search or transaction was given. The filing does not provide a forecast or quantified guidance.
- The company reported no material off-balance-sheet arrangements, legal proceedings, unregistered equity sales, or defaults on senior securities. Management concluded disclosure controls were effective and reported no significant changes in internal controls during the quarter.
Important facts to verify
- Confirm whether this AFH Acquisition X filing was supplied in error for the requested Bone Biologics Corp summary.
- Verify the intended reporting period: this report covers the quarter ended July 31, 2011, not a calendar-year quarter.
- Check the underlying SEC filing and financial statements for the reported zero cash, $27,250 liabilities, and parent advance with no repayment terms.
- Confirm any subsequent financing, target acquisition, or change in corporate identity; none is established by this filing.