Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2010, for R&R Acquisition VI, Inc. (Note: The input metadata lists "ADMA BIOLOGICS, INC.", but the filing text explicitly identifies the registrant as R&R Acquisition VI, Inc.). The company is a Delaware corporation classified as a "blank check" or development stage company. Its sole objective is to acquire or merge with an operating business. As of the reporting date, the company had not commenced any operations, had no employees, and had no specific business plan other than seeking a merger target.
Key Financial Metrics
| Metric | Three Months Ended Mar 31, 2010 | Nine Months Ended Mar 31, 2010 | Period from Inception (June 2006) to Mar 31, 2010 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Total Operating Expenses | $4,811 | $12,957 | $106,128 |
| Net Loss | $(4,810) | $(12,954) | $(106,024) |
| Cash and Cash Equivalents (Ending) | $2,934 (as of Mar 31, 2010) | ||
| Accrued Expenses (Liabilities) | |||
| Working Capital | $(3,774) (Negative) | ||
| Shares Outstanding | 2,500,000 |
Debt and Liquidity: The company has no long-term debt. Liquidity is constrained, with cash balances of $2,934 against current liabilities of $6,708. The company relies on contributed capital from stockholders to fund operations.
Material Changes vs. Prior Period
- Expense Increase: Total operating expenses for the nine months ended March 31, 2010, were $12,957, an increase from $10,949 in the same period in 2009. This increase is attributed to higher professional fees.
- Cash Position: Cash and cash equivalents decreased from $8,688 at June 30, 2009, to $2,934 at March 31, 2010, reflecting a net cash outflow of $5,754 from operating activities during the nine-month period.
- Accrued Liabilities: Accrued expenses decreased from $11,508 to $6,708, indicating a reduction in outstanding obligations compared to the prior fiscal year-end.
Outlook, Risks, and Management Commentary
Management Commentary: Management states that the company has no revenues and no operations. The business model is entirely dependent on effecting a business combination with a target company. Officers devote only part-time effort to the company, and no full-time employees are anticipated until a merger is consummated.
Risks and Contingencies:
- Liquidity Risk: The company has negative working capital and no assurance that stockholders or management will provide additional loans or capital to sustain operations or fund a merger.
- Merger Uncertainty: There is no assurance that a suitable business combination will be found or completed within the next 12 months.
- Single Business Dependency: If a merger occurs, the company's success will depend entirely on the performance of a single target business, offering no diversification of risk.
- Blank Check Status: As a shell company, the securities are subject to "penny stock" regulations, and many states limit the sale of such securities.
Unusual Items: The company entered into an administrative services agreement on January 29, 2009, requiring quarterly payments of $500 for office use and services.
Investor Verification Checklist
- Entity Verification: Confirm the registrant is R&R Acquisition VI, Inc. and not ADMA Biologics, Inc., as the filing text contradicts the metadata provided.
- Cash Runway: Verify if the remaining cash of $2,934 is sufficient to cover the $500 quarterly administrative fees and SEC filing costs until a merger is found.
- Capital Contributions: Review the history of "Contributed Capital" ($12,000 in the current nine-month period) to assess the willingness of existing shareholders to fund the company.
- Merger Progress: Investigate if there are any undisclosed discussions with potential target companies, as the filing states there are no definitive agreements.
- Shell Company Status: Confirm the company's status as a "shell company" and the implications for trading restrictions and regulatory compliance.