SEC Filing Summary: Cactus Ventures, Inc. (10-Q)
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2012, for Cactus Ventures, Inc. (Note: The input metadata referenced "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 merger or acquisition target to become an operating public company.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(15,947) | $16,450 (Net Income) |
| Total Expenses | $13,350 | $6,041 |
| Interest Expense | $2,597 | $2,509 |
| Cash and Cash Equivalents | $142 | $150 |
| Total Liabilities | $100,418 | $84,479 |
| Shareholders' Deficit | $(100,276) | $(84,329) |
| Working Capital | $(29,016) | Not explicitly stated |
Debt and Liquidity: The company holds only $142 in cash. Total liabilities include $71,260 in notes payable to related parties and $28,602 in accrued interest. The company has a significant stockholders' deficit.
Material Changes vs. Prior Period
- Profitability Reversal: The company shifted from a net income of $16,450 in the prior year period to a net loss of $15,947. The prior year income was driven by a one-time $25,000 gain on the retention of a deposit related to an abandoned merger deal.
- Expense Increase: Operating expenses more than doubled from $6,041 to $13,350, primarily due to increased professional fees ($10,960 vs. $5,710) and other costs.
- Debt Accumulation: Notes payable to related parties increased by $13,092 during the period, while no repayments were made. Accrued interest increased by $2,597.
- Cash Position: Cash decreased slightly from $150 to $142.
Outlook, Risks, and Management Commentary
- Going Concern: Management explicitly states that the company's negative working capital and stockholders' deficiency raise substantial doubt about its ability to continue as a going concern. Continuation depends on raising additional funds and successfully implementing a business plan (merger/acquisition).
- Plan of Operation: The company intends to search for a business opportunity to merge with. It anticipates expenses of approximately $20,000 for the next 12 months, relying on advances from the president to cover costs.
- Risks: There is no assurance the company will identify a suitable target or consummate a transaction. Any future acquisition will likely result in significant share issuance and dilution to current shareholders.
- Unusual Items: The prior year's net income was non-recurring, resulting from a deposit retention on a deal that expired in August 2011.
Investor Verification Checklist
- Identity Discrepancy: Verify why the request metadata listed "Actinium Pharmaceuticals" while the filing is for "Cactus Ventures, Inc."
- Related Party Debt: Confirm the terms and repayment status of the $71,260 in notes payable to related parties and the $28,602 in accrued interest.
- Liquidity Runway: Assess the reliability of management's assertion that the president will provide sufficient advances to cover the projected $20,000 in annual expenses.
- Merger Status: Verify if any new Letters of Intent or merger discussions have occurred since the filing date, given the company's status as a shell entity.
- Going Concern: Review the latest filings to determine if the company has secured the capital necessary to avoid insolvency.