Filing identity and reporting period
Important identity discrepancy: The request identifies Bone Biologics Corp, but the supplied Form 10-Q is for AFH Acquisition X, Inc., a Delaware development-stage blank-check company. This summary reflects the supplied filing, not Bone Biologics Corp.
The unaudited quarter ended July 31, 2012; the filing also reports results for the nine months ended that date. AFH Acquisition X was wholly owned by AFH Holding & Advisory, LLC and reported that it was a shell company.
Financial results and position
| Metric | Three months ended July 31, 2012 | Nine months ended July 31, 2012 | Prior-year comparable period |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Expenses | $1,088 | $4,194 | $725 and $2,802, respectively |
| Net loss | $1,088 | $4,594 | $725 and $3,202, respectively |
The nine-month 2012 loss includes $400 of franchise tax; the prior-year comparable period also included $400. Since inception through July 31, 2012, cumulative net loss was $58,562. Basic and diluted loss per share rounded to $(0.00) for the quarter and nine-month period. Profit margins are not meaningful given zero revenue.
At July 31, 2012, total assets and cash were $0; liabilities were $33,562, comprising $9,514 of accrued expenses and $24,048 due to the parent. The parent balance was unchanged from October 31, 2011, and had no stated repayment terms. Stockholders’ deficit was $33,562; accumulated deficit was $58,562. The filing does not identify interest-bearing debt.
Operating cash flow was $0 for the nine months ended July 31, 2012, as the net loss was offset by an increase in accrued expenses. Investing and financing cash flows were also $0 for that period. The company reported no capital resources or cash on hand.
Changes, outlook, and risks
Compared with the prior-year periods, quarterly expenses and net loss increased by $363; nine-month expenses increased by $1,392 and net loss by $1,392. Accrued expenses rose by $4,594 from October 31, 2011, while total liabilities increased by the same amount. Revenue remained zero.
The company had conducted no active operations other than searching for an acquisition candidate and reported no negotiations with a target. Management said future funding would depend on issuing common stock or receiving additional shareholder capital; neither funding nor a successful acquisition was assured. Management warned that a business combination could substantially dilute existing shareholders and that additional securities could depress the share price if a market developed.
The filing disclosed recurring losses and stated that continued existence depended on raising capital or acquiring a marketable company. Its going-concern financial statements include no adjustments for a possible inability to continue. No revenue guidance or specific acquisition timetable was provided. The company reported no legal proceedings and no material off-balance-sheet arrangements. Management concluded disclosure controls were effective and reported no significant quarterly change in internal controls. The filing did not provide risk-factor disclosures, noting the company was not required to do so as a smaller reporting company.
Investor facts to verify
- Confirm the issuer: the supplied filing is for AFH Acquisition X, Inc., not Bone Biologics Corp.
- Verify the company’s ability to fund ongoing costs with no cash or capital resources and $33,562 in liabilities.
- Assess the going-concern dependence on new capital or a successful acquisition; no target negotiations were underway.
- Review potential dilution and the parent-company advance, which has no stated repayment terms.
- Confirm the reporting-period interpretation: the quarter ended July 31, 2012, and the filing separately presents nine-month results.