Filing Summary
Entity mismatch: The request identifies Bone Biologics Corp, but the supplied Form 10-Q is for AFH Acquisition X, Inc., a development-stage blank-check company. The figures and disclosures below are for AFH Acquisition X, Inc., not Bone Biologics Corp.
Business Context and Reporting Period
The unaudited quarterly report covers the three months ended January 31, 2013. AFH reported that it had no active operations other than seeking an acquisition or merger target, and was not negotiating with a target as of the financial statement date. It identified itself as a shell company and was wholly owned by AFH Holding & Advisory, LLC.
Financial Results and Position
- Revenue: $0 for the quarter and since inception.
- Expenses and loss: Quarterly expenses and net loss were $1,618, compared with $1,356 in the prior-year quarter. Basic and diluted loss per share was reported as $0.00 (rounded). Accumulated deficit since inception was $61,217.
- Cash flow: Operating cash outflow was $30, versus $0 in the prior-year quarter. Cash at January 31, 2013 was $470, down from $500 at October 31, 2012. No investing or financing cash flows occurred during the quarter.
- Assets and liabilities: Total assets were $470. Total liabilities were $36,687, including $6,082 of accrued expenses and $30,605 due to the parent. The parent advance has no repayment terms. Stockholders’ deficit was $36,217.
- Margins, debt, and liquidity: Margins are not meaningful because there was no revenue. The filing reports no conventional debt balance, but does report the parent advance. Liquidity is extremely limited.
- Shares: 5,000,000 common shares were outstanding as of March 18, 2013.
Changes Versus the Prior Comparable Period
Quarterly loss increased by $262, from $1,356 to $1,618, mainly reflecting legal and professional expenses of $1,588 and office expenses of $30. Cash declined by $30; accrued expenses rose by $1,588 from October 31, 2012. There was no revenue in either quarter.
Outlook, Risks, and Other Matters
Management said the company depends on raising capital or acquiring a marketable company to continue. It planned to fund administrative expenses through common-stock issuance or additional shareholder contributions, but provided no forecast or assurance that financing or an acquisition would be secured. The filing warns that a business combination could substantially dilute existing shareholders and that future securities issuance could depress the share price. The going-concern note cites recurring operating losses and states that the financial statements include no adjustments that might be required if the company cannot continue as a going concern.
No legal proceedings, unregistered equity sales, defaults upon senior securities, or material off-balance-sheet arrangements were reported. Management concluded disclosure controls were effective and reported no significant quarterly changes in internal controls.
Important Facts for Investors to Verify
- Confirm the filing is the intended company filing: it names AFH Acquisition X, Inc., not Bone Biologics Corp.
- Verify current cash, funding availability, and the status and terms of the $30,605 parent advance.
- Check whether the company later identified or completed an acquisition, and whether any financing or share issuance materially changed ownership.
- Review subsequent filings for updates to the going-concern uncertainty and reported liabilities.