Business Context and Reporting Period
Company: Berry Only Inc. (Note: Metadata listed "Tuhura Biosciences," but the filing text identifies the registrant as Berry Only Inc.)
Reporting Period: Quarterly Report (Form 10-Q) for the three months ended December 31, 2010.
Status: Development-stage company incorporated in Nevada on June 24, 2009. The company intends to market and distribute "Wireless Wipes," a sanitizing product for mobile devices, under an exclusive dealership agreement with a U.S. manufacturer.
Shell Company Status: Yes.
Key Financial Metrics
| Metric | Three Months Ended Dec 31, 2010 | Six Months Ended Dec 31, 2010 | Cumulative from Inception (June 24, 2009) |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Total Expenses | $14,568 | $22,478 | $28,060 |
| Net Loss | $(14,568) | $(22,478) | $(28,060) |
| Cash and Cash Equivalents | $21,416 (Dec 31, 2010) | $21,416 (Dec 31, 2010) | $21,416 (Dec 31, 2010) |
| Total Assets | $21,416 | $21,416 | $21,416 |
| Total Liabilities | $0 | $0 | $0 |
| Stockholders' Equity | $21,416 | $21,416 | $21,416 |
| Shares Outstanding | 5,950,000 | 5,950,000 | 5,950,000 |
Cash Flow (Six Months Ended Dec 31, 2010):
- Net cash used in operating activities: $(23,130)
- Net cash provided by financing activities: $0 (No stock issued in this specific six-month period; prior financing occurred in 2009 and early 2010).
- Net decrease in cash: $(23,145).
Material Changes vs. Prior Period
- Expenses: Total expenses for the three months ended December 31, 2010, were $14,568, a significant increase from $1,635 in the same period in 2009. This increase was primarily driven by professional fees ($13,493 vs. $1,432) associated with becoming a reporting issuer.
- Marketing: Marketing expenses increased to $687 from $0 in the prior year quarter due to the website becoming operational.
- Liquidity: Cash balances decreased from $44,561 at June 30, 2010, to $21,416 at December 31, 2010, reflecting ongoing operational burn without revenue generation.
- Revenue: No revenue was generated in the current or prior periods; the company remains in the development stage.
Outlook, Risks, and Management Commentary
- Going Concern: The filing includes a substantial doubt regarding the company's ability to continue as a going concern. The company has incurred cumulative losses of $28,084 since inception and has no operating revenues. Continued operations depend on raising additional capital and the success of future retail operations.
- Business Plan: Management plans to launch sales of Wireless Wipes in Canada. Phase I involves developing third-party distributor relationships and expanding the website, with a budget of approximately $30,000 over 9-12 months. Management believes current funding is sufficient for this phase but anticipates needing additional capital in 9-12 months if sales are not generated.
- Financing: Operations have been funded entirely by private placements of common stock. There are no current plans or arrangements for raising further capital, though it is expected to be necessary.
- Risks: Key risks include the inability to secure additional financing, failure to generate revenue, and the inherent risks of a development-stage company. If the company cannot become profitable, it may be forced to discontinue operations.
- Unusual Items: No unusual items were reported. The company has no property and equipment, and no accounts payable as of December 31, 2010.
Investor Verification Checklist
- Capital Adequacy: Verify if the company has secured the additional financing required to sustain operations beyond the next 9-12 months, as current cash ($21,416) is being depleted by operating losses.
- Revenue Generation: Confirm whether the company has successfully established third-party distributor relationships and generated any sales revenue from the Wireless Wipes product.
- Going Concern Status: Review the latest audit reports or subsequent filings to determine if the "substantial doubt" regarding the company's ability to continue as a going concern has been resolved.
- Shareholder Dilution: Monitor for future equity issuances, as the company relies on stock sales for funding, which may dilute existing shareholders.
- Dealership Agreement: Verify the status of the exclusive dealership agreement with Wireless Wipes and whether minimum order requirements are being met.