SEC Filing Summary: Zeta Acquisition Corp. III
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2009. The registrant is Zeta Acquisition Corp. III, a Delaware corporation organized as a "blank check" company and shell company. The entity is in the development stage with no active operations other than efforts to locate a suitable acquisition candidate. The company has generated no revenue since its inception on November 16, 2007.
Key Financial Metrics
| Metric | Value (as of/for period ended June 30, 2009) |
|---|---|
| Revenue | $0 (No revenue generated since inception) |
| Net Loss (3 Months) | $(3,627) |
| Net Loss (6 Months) | $(7,032) |
| Cumulative Net Loss (Inception to Date) | $(55,632) |
| Cash and Cash Equivalents | $16,775 |
| Total Assets | $21,275 |
| Total Liabilities | $26,907 |
| Stockholders' Deficit | $(5,632) |
| Debt (Notes Payable to Stockholders) | $25,000 (6% interest, due on demand) |
| Shares Outstanding | 5,000,000 |
Material Changes vs. Prior Period
- Liquidity Position: Cash and cash equivalents increased from $7,508 at December 31, 2008, to $16,775 at June 30, 2009, driven by $25,000 in proceeds from notes payable issued to stockholders.
- Liabilities: Total liabilities increased from $6,108 to $26,907, primarily due to the new $25,000 in notes payable to stockholders, partially offset by a reduction in accounts payable and accrued expenses.
- Operating Loss: The net loss for the six months ended June 30, 2009 ($7,032) was significantly lower than the same period in 2008 ($20,327), reflecting reduced professional service fees associated with initial formation and registration activities.
Outlook, Risks, and Management Commentary
- Going Concern: Management asserts that the company's ability to continue as a going concern is dependent upon its ability to secure additional financing and consummate a business combination. The financial statements do not include adjustments that might be necessary if the company cannot continue as a going concern.
- Capital Requirements: The company has not identified a target business and cannot ascertain capital requirements for a transaction. It relies on related parties for continued funding.
- Future Operations: The primary objective for the next 12 months is to achieve long-term growth through a combination with an operating business. Costs will be incurred for filing Exchange Act reports and investigating acquisition candidates.
- Risks: As a shell company with nominal assets, the company faces significant risks regarding the selection of a target, which may be financially unstable or in early development stages. There is no assurance a business combination will occur.
Investor Verification Checklist
- Verify the status of the $25,000 in notes payable to stockholders and the terms of repayment.
- Confirm the company's ability to fund operations for the next 12 months given the stockholders' deficit and lack of revenue.
- Monitor for any announcements regarding a specific target company or business combination.
- Review the company's compliance with periodic reporting requirements to ensure it does not lose its public listing status.