SEC Filing Summary: R&R Acquisition VI, Inc. (10-Q)
Business Context and Reporting Period
This is a Quarterly Report on Form 10-Q for R&R Acquisition VI, Inc., a Delaware corporation classified as a "blank check" company and a development stage entity. The report covers the quarterly period ended December 31, 2010. The Company has no specific business plan or operations and was formed to acquire or merge with an unidentified operating business. As of the filing date, the Company had not commenced any operations.
Key Financial Metrics
| Metric | Value (Dec 31, 2010) | Value (Jun 30, 2010) |
|---|---|---|
| Cash and Cash Equivalents | $3,100 | $12,012 |
| Total Assets | $3,100 | $12,012 |
| Total Liabilities | $4,818 | $12,358 |
| Stockholders' Equity (Deficit) | ($1,718) | ($346) |
| Accumulated Deficit (Inception to Date) | ($123,468) | ($113,596) |
| Net Loss (Six Months Ended Dec 31, 2010) | ($9,872) | N/A |
| Net Loss (Three Months Ended Dec 31, 2010) | ($5,228) | N/A |
| Revenue | $0 | $0 |
| Shares Outstanding | 2,500,000 | 2,500,000 |
Material Changes vs. Prior Period
- Liquidity Decline: Cash and cash equivalents decreased by approximately 74% from $12,012 at June 30, 2010, to $3,100 at December 31, 2010.
- Expense Increase: Total operating expenses for the six months ended December 31, 2010, were $9,874, compared to $8,146 for the same period in 2009. This increase is attributed to higher professional and filing fees.
- Accumulated Deficit: The accumulated deficit grew by $9,872 during the six-month period, reflecting the net loss incurred.
- Liabilities: Accrued expenses decreased from $12,358 to $4,818, indicating a reduction in outstanding obligations compared to the prior fiscal year-end.
Outlook, Risks, and Management Commentary
- Business Plan: The Company's sole objective is to effect a business combination with an operating company. It has no revenues, employees, or specific business plan.
- Liquidity Risk: The Company has negative working capital of $1,718. It is dependent on future loans from stockholders or management to continue operations, with no assurance such funding will be available.
- Forward-Looking Statements: Management disclaims any obligation to update forward-looking statements. Success is entirely dependent on finding a suitable target for merger.
- Commitments: The Company has an agreement for office space and administrative services requiring quarterly payments of $500 to Kirk M. Warshaw, LLC.
- Off-Balance Sheet: No off-balance sheet arrangements exist as of December 31, 2010.
Investor Verification Checklist
- Verify the Company's ability to secure additional funding given the negative working capital and cash balance of only $3,100.
- Confirm the status of any ongoing discussions with potential target companies for a merger or acquisition.
- Review the terms of the administrative services agreement with Kirk M. Warshaw, LLC to ensure compliance with related party transaction rules.
- Assess the timeline for the Company to consummate a business combination before cash reserves are depleted.
- Check for any subsequent events or filings that may indicate a change in the Company's status or a completed merger.