Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2011, for Cactus Ventures, Inc. (Note: The input metadata references "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 business combination or merger with a target entity to become a reporting public company.
Key Financial Metrics
| Metric | Q1 2011 | Q1 2010 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(4,005) | $(8,296) |
| Loss Per Share | $(0.01) | $(0.01) |
| Cash and Equivalents | $150 | $1,198 |
| Total Assets | $150 | $150 |
| Total Liabilities | $98,772 | $94,768 |
| Shareholders' Deficit | $(98,622) | $(94,618) |
| Working Capital | $(35,795) | $(35,911) |
Debt and Liquidity: The company holds only $150 in cash. Total liabilities include $11,474 in accounts payable, $22,571 in accrued interest, and $62,827 in notes payable to related parties. The company has no lines of credit.
Material Changes vs. Prior Period
- Expense Reduction: Total operating expenses decreased from $6,537 in Q1 2010 to $2,680 in Q1 2011, primarily due to lower professional fees ($5,470 vs. $2,475) and other costs ($1,043 vs. $205).
- Net Loss Improvement: The net loss narrowed by approximately 52% year-over-year, from $(8,296) to $(4,005).
- Cash Position: Cash balances remained flat at $150 for the quarter, though the year-over-year comparison shows a significant depletion from $1,198 in March 2010 to $150 in March 2011.
- Related Party Borrowing: The company borrowed $4,120 from related parties during the quarter to fund operations, compared to $4,500 in the prior year.
Outlook, Risks, and Management Commentary
Going Concern: Management has raised substantial doubt about the company's ability to continue as a going concern due to accumulated losses, negative working capital, and a shareholders' deficit. Continued operations depend entirely on the ability to raise additional funds and successfully execute a merger.
Plan of Operation: The company anticipates expenses of approximately $20,000 for the next 12 months. Management expects to rely on advances from the president to meet these needs, though no assurances are given. The primary business activity is searching for a target company for acquisition or merger.
Risks:
- No assurance of identifying or successfully negotiating a business combination.
- Significant dilution to current shareholders is likely upon any acquisition.
- Dependence on related party financing for survival.
Investor Verification Checklist
- Entity Identity: Verify that the filing is for Cactus Ventures, Inc., not Actinium Pharmaceuticals, as the metadata and filing text conflict.
- Shell Status: Confirm the company has no revenue, no employees, and minimal assets ($150 cash), consistent with a "blank check" shell company.
- Related Party Debt: Review the $62,827 in notes payable to related parties and the reliance on the president for future funding.
- Going Concern: Assess the risk of insolvency given the $98,622 shareholders' deficit and lack of operating cash flow.
- Share Count: Note the 11,155,008 shares outstanding as of April 27, 2011.