SEC Filing Summary: Zeta Acquisition Corp. III (10-Q)
Business Context and Reporting Period
This filing is a Quarterly Report on Form 10-Q for Zeta Acquisition Corp. III (not Kura Oncology, Inc., as indicated in the metadata request) for the period ended September 30, 2008. The company is a Delaware corporation organized as a "blank check" or "shell" company in the development stage. Its sole purpose is to investigate and acquire a target business to achieve long-term growth potential. The company has no specific business plan or operations other than seeking a business combination.
Key Financial Metrics
| Metric | Three Months Ended Sep 30, 2008 | Nine Months Ended Sep 30, 2008 | Cumulative (Inception to Sep 30, 2008) |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Net Loss | $(4,188) | $(24,515) | $(39,492) |
| Cash and Cash Equivalents | $9,284 | $9,284 | $9,284 |
| Total Assets | $12,284 | $12,284 | $12,284 |
| Total Liabilities | $1,776 | $1,776 | $1,776 |
| Stockholders' Equity | $10,508 | $10,508 | $10,508 |
| Net Cash Used in Operating Activities | $(2,912) | $(29,989) | $(40,716) |
| Net Cash Provided by Financing Activities | $0 | $0 | $50,000 |
Debt and Liquidity: The company has no long-term debt. A $10,000 promissory note to a stockholder was issued and subsequently repaid from stock proceeds. Current liabilities consist of accounts payable and accrued expenses totaling $1,776. The company has no revenue and relies on capital investment to fund operations.
Material Changes vs. Prior Period
- Cash Position: Cash and cash equivalents decreased from $39,273 as of December 31, 2007, to $9,284 as of September 30, 2008, a reduction of approximately 76%.
- Liabilities: Total liabilities decreased from $4,250 to $1,776, primarily due to the repayment of the stockholder note and reduction in accrued expenses.
- Accumulated Deficit: The accumulated deficit during the development stage increased from $(14,977) to $(39,492) due to ongoing formation and administrative costs.
Outlook, Risks, and Management Commentary
Management Commentary: Management states that the company has not identified any business combination and cannot ascertain capital requirements for a transaction. The company is dependent on related parties for continued funding. There is no assurance that the company can satisfy cash requirements for the next twelve months.
Risks and Contingencies:
- Going Concern: The financial statements are presented on a going concern basis, but the company has incurred losses since inception and has no revenue. Continued operations depend on additional financing.
- Blank Check Status: As a shell company with no specific business plan, the company is subject to risks associated with identifying and merging with a target, which may be financially unstable or in early development stages.
- Liquidity Risk: The company may not be able to implement its plan of operations if continued funding is unavailable at reasonable terms.
Unusual Items: The company utilizes office space and equipment of an officer/director at no cost, estimated to be de minimis.
Key Facts for Investor Verification
- Identity Mismatch: The filing is for Zeta Acquisition Corp. III, a shell company, not Kura Oncology, Inc. Verify the correct ticker and entity before investing.
- Capital Adequacy: With only $9,284 in cash and no revenue, verify if the company has secured additional funding to survive the next 12 months.
- Target Acquisition: Confirm if the company has identified a specific target for merger or acquisition, as none is currently disclosed.
- Related Party Dependence: Assess the reliability of related parties (officers/directors) to provide the necessary capital for future operations.
- Share Count: Verify the 5,000,000 shares of common stock outstanding and the potential for dilution upon a future business combination.