Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended September 30, 2010, for R&R Acquisition VI, Inc. (Note: The input metadata references "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" company and a development stage entity. 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 revenues, and had no employees.
Key Financial Metrics
| Metric | Three Months Ended Sep 30, 2010 | Three Months Ended Sep 30, 2009 | Inception to Sep 30, 2010 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Total Operating Expenses | $4,644 | $3,819 | $118,345 |
| Net Loss | $(4,643) | $(3,818) | $(118,239) |
| Cash and Cash Equivalents (End of Period) | $3,619 | $9,270 | $3,619 |
| Total Assets | $3,619 | N/A | $3,619 |
| Total Liabilities | $8,608 | N/A | $8,608 |
| Working Capital | $(4,989) | N/A | $(4,989) |
| Stockholders' Equity (Deficit) | $(4,989) | N/A | $(4,989) |
Debt and Liquidity: The company has no long-term debt. Current liabilities consist entirely of accrued expenses ($8,608). The company reported negative working capital of $4,989. Cash flow from operating activities used $8,393 for the quarter, while financing activities provided no cash during this specific period (though cumulative financing since inception provided $113,250).
Material Changes Versus Prior Period
- Expense Increase: Total operating expenses increased by approximately 21.6% from $3,819 in the prior year quarter to $4,644 in the current quarter. This increase is attributed primarily to higher professional fees.
- Cash Position: Cash and cash equivalents decreased from $12,012 at June 30, 2010, to $3,619 at September 30, 2010, reflecting the burn rate of operating expenses.
- Accrued Liabilities: Accrued expenses decreased from $12,358 to $8,608 during the quarter, indicating some payments were made against prior obligations.
Outlook, Risks, and Management Commentary
Plan of Operation: Management states the company has no specific business plan other than to effect a business combination with an operating company. Success is entirely dependent on finding a suitable target. The company expects to have sufficient proceeds for only a single business combination.
Liquidity Risks: The company has no revenues and is dependent on future loans from stockholders or management to continue operations. There is no assurance that such loans will be available or on acceptable terms. The filing explicitly states there can be no assurance that a merger will occur within the next twelve months.
Forward-Looking Statements: The filing includes standard disclaimers that actual results may differ materially from expectations due to risks inherent in the "blank check" business model, including the inability to find a target or the failure of a target business to perform.
Commitments: The company has an agreement for office space and administrative services with Kirk M. Warshaw, LLC, requiring quarterly payments of $500.
Investor Verification Checklist
- Entity Identity: Verify the discrepancy between the metadata name ("ADMA BIOLOGICS, INC.") and the filing registrant ("R&R Acquisition VI, Inc.").
- Capital Adequacy: Confirm the company's ability to fund operations given the negative working capital of $(4,989) and cash balance of only $3,619.
- Merger Timeline: Assess the likelihood of a business combination occurring within the next 12 months, as management provides no assurances.
- Related Party Transactions: Review the administrative services agreement with Kirk M. Warshaw, LLC, noting the potential conflict of interest given the CFO's name.
- Shell Status: Confirm the company's status as a shell company with no active operations, which limits immediate revenue generation.