SEC Filing Summary: Berry Only Inc. (10-Q)
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2011, for Berry Only Inc., a Nevada corporation incorporated on June 24, 2009. The company is classified as a development-stage company and a shell company. Its primary business objective is the marketing and distribution of "Wireless Wipes," a sanitizing product for mobile devices, under an exclusive dealership agreement with a U.S. manufacturer for the Canadian market. The company has not yet generated any operating revenues.
Key Financial Metrics
| Metric | Three Months Ended Mar 31, 2011 | Nine Months Ended Mar 31, 2011 | Cumulative from Inception (June 24, 2009) |
|---|---|---|---|
| Revenues | $0 | $0 | $0 |
| Total Expenses | $3,827 | $26,305 | $31,887 |
| Net Loss | $(3,827) | $(26,305) | $(31,887) |
| Cash and Cash Equivalents | $17,526 (Ending Balance) | $(26,957) (Used in Operating Activities) | $17,526 (Ending Balance) |
| Total Assets | $17,526 | N/A | N/A |
| Total Liabilities | $0 | N/A | N/A |
| Stockholders' Equity | $17,526 | N/A | N/A |
| Shares Outstanding | 5,950,000 | 5,950,000 | 5,950,000 |
Note: The filing text does not provide specific margin percentages as there is no revenue. The company has no debt or accounts payable as of March 31, 2011.
Material Changes vs. Prior Period
- Expense Increase: Total expenses for the three months ended March 31, 2011, were $3,827, a significant increase from $51 in the same period in 2010. This increase is attributed to the launch of the company website and increased professional fees associated with becoming a reporting issuer.
- Cash Position: Cash and cash equivalents decreased from $44,561 at June 30, 2010, to $17,526 at March 31, 2011, primarily due to operating losses and a currency translation adjustment of $(78).
- Capital Structure: No new stock was issued during the nine months ended March 31, 2011. All equity funding was raised in prior periods (2009 and 2010).
Outlook, Risks, and Management Commentary
- Going Concern: The company has incurred a cumulative loss of $31,887 since inception and has no revenues. Management states there is substantial doubt about the company's ability to continue as a going concern without additional financing.
- Future Funding: The company anticipates needing to raise additional capital within 6 to 9 months if sales are not generated. There are currently no plans or arrangements for raising further capital.
- Operational Plan: The company is in "Phase I" of its plan, focusing on developing third-party distributor relationships and expanding its website. Management expects to incur approximately $30,000 in costs over the next 9 to 12 months to complete this phase.
- Risks: Key risks include the inability to secure financing, failure to generate sales, and the inherent risks of a development-stage company. The company relies entirely on the success of the Wireless Wipes product distribution.
- Tax Status: The company has a net operating loss carryforward of approximately $26,000, but a 100% valuation allowance has been established against the deferred tax asset.
Investor Verification Checklist
- Verify the status of the exclusive dealership agreement with Wireless Wipes and any minimum order requirements.
- Confirm the company's ability to raise the anticipated additional capital required within the next 6 to 9 months.
- Review the progress of third-party distributor relationships and website sales capabilities.
- Assess the liquidity risk given the cash balance of $17,526 against ongoing operating expenses.
- Check for any subsequent events or changes in the "Going Concern" status since the filing date of May 12, 2011.