Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2009, for Cactus Ventures, Inc. (Note: The input metadata referenced "Actinium Pharmaceuticals," but the filing text explicitly identifies the registrant as Cactus Ventures, Inc.). The company is a Nevada corporation classified as a shell company and a smaller reporting company. It has no active operations, no employees, and is currently seeking a merger or acquisition target to become a public reporting entity.
Key Financial Metrics
| Metric | Q1 2009 | Q1 2008 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(5,313) | $(10,828) |
| Loss Per Share | $(0.01) | $(0.01) |
| Cash and Equivalents | $2,194 | $2,290 |
| Total Assets | $2,194 | $2,290 |
| Total Liabilities | $81,468 | $76,179 |
| Shareholders' Deficit | $(79,274) | $(73,961) |
| Working Capital | $(19,221) | $(24,134) |
Debt and Liquidity: The company holds minimal cash ($2,194) against significant liabilities. Total liabilities include $60,053 in notes payable to related parties, $10,058 in accounts payable, and $9,937 in accrued interest. The company has no lines of credit.
Material Changes vs. Prior Period
- Reduced Net Loss: The net loss decreased by approximately 51% from $10,828 in Q1 2008 to $5,313 in Q1 2009.
- Expense Reduction: Total operating expenses dropped from $9,705 to $3,878, primarily due to a significant decrease in "Other costs" (from $6,821 to $359).
- Increased Related Party Debt: Notes payable to related parties increased by $10,226 during the quarter to fund operations.
- Liability Growth: Total liabilities increased by $5,289, driven by accrued interest and new related party borrowings, despite a reduction in accounts payable and accrued legal fees.
Outlook, Risks, and Management Commentary
Going Concern: The filing explicitly states that the company's financial position raises substantial doubt about its ability to continue as a going concern. This is due to accumulated losses, negative working capital, and a shareholders' deficit of $254,709. Continuation is dependent on raising additional funds and successfully implementing a business plan (merger/acquisition).
Plan of Operation: Management anticipates expenses of approximately $20,000 for the next 12 months. The company relies on advances from its president to cover costs, though there is no assurance these funds will be available. The primary business activity is searching for a target company to merge with.
Risks: There is no assurance the company will identify a suitable business opportunity. Any future acquisition will likely result in significant share issuance and dilution to current shareholders. The company has no specific business plan or expertise in any industry.
Investor Verification Checklist
- Identity Discrepancy: Verify why the request metadata listed "Actinium Pharmaceuticals" while the filing is for "Cactus Ventures, Inc."
- Related Party Dependence: Confirm the terms and repayment status of the $60,053 in notes payable to related parties.
- Cash Runway: Assess the sufficiency of the $2,194 cash balance against the projected $20,000 annual expense requirement.
- Merger Status: Investigate if any specific merger targets have been identified or if negotiations are underway, as none are disclosed in this filing.
- Accrued Liabilities: Review the $9,937 in accrued interest and $1,420 in accrued legal fees for potential settlement requirements.