Business Context and Reporting Period
Company: First Advantage Corporation
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: March 31, 2003
Business Status: The Company is a newly formed, wholly-owned holding company established on December 12, 2002, by The First American Corporation. As of the reporting date, the Company has no operations.
Key Financial Metrics
| Metric | Value (March 31, 2003) | Value (December 31, 2002) |
|---|---|---|
| Cash and Cash Equivalents | $1,000 | $1,000 |
| Total Assets | $1,000 | $1,000 |
| Total Liabilities | $0 | $0 |
| Stockholder's Equity | $1,000 | $1,000 |
| Revenue | Not reported (No operations) | Not reported (No operations) |
| Net Income/Loss | Not reported (No operations) | Not reported (No operations) |
Capital Structure: 1,000 shares of Common Stock authorized; 1 share issued and outstanding as of March 31, 2003.
Material Changes
There were no material changes in financial position between December 31, 2002, and March 31, 2003. The balance sheet remained static with $1,000 in cash and $1,000 in additional paid-in capital. The Company has not commenced operations during the period.
Outlook, Risks, and Contingencies
- Pending Merger: The Company entered into a Merger Agreement on December 13, 2002, to acquire US SEARCH.com, Inc. and the First American Screening Technologies (FAST) division of The First American Corporation.
- Equity Distribution: Upon completion of the merger, US SEARCH stockholders will receive approximately 20% of the outstanding equity (Class A common stock, 1 vote per share), while First American will receive approximately 80% (Class B common stock, 10 votes per share).
- Market Risk: The Company held no derivative financial instruments as of March 31, 2003.
- Legal Proceedings: None reported.
- Corporate Actions: The sole stockholder approved the 2003 Incentive Compensation Plan via written consent on February 28, 2003.
Investor Verification Checklist
- Verify the status and expected closing date of the pending merger with US SEARCH.com, Inc. and the FAST division.
- Confirm the final equity split and voting rights structure between Class A and Class B common stock post-merger.
- Monitor for the commencement of operations and the integration of acquired assets.
- Review future filings for the adoption of a formal operating budget and revenue projections once the merger is consummated.