Filing summary
Entity mismatch: The supplied filing is for Tamandare Explorations Inc., not Tonix Pharmaceuticals Holding Corp. It is a Form 10-Q for the quarter ended June 30, 2011, filed as an exploration-stage company and marked as a shell company. Do not attribute these figures to Tonix without verifying the filing identity.
Financial results and position
| Metric | Three months ended June 30, 2011 | Six months ended June 30, 2011 | Comparable 2010 period |
|---|---|---|---|
| Revenue | None | None | None reported |
| Expenses / net loss | $1,516 | $7,031 | $2,402 / $8,224 |
| Net loss per share | $(0.00) | $(0.00) | $(0.00) |
At June 30, 2011, cash was $747, total assets were $747, liabilities were $13,460, and stockholders’ deficit was $12,713. Liabilities included $3,460 in accounts payable and a $10,000 non-interest-bearing loan from the president, with no specific repayment terms. Six-month operating cash use was $3,877; no financing cash was received during the period. The filing reports no interest or income taxes paid. Profitability and margins are not meaningful because the company had no revenue.
Accumulated losses since inception were $77,713. Since inception, the company reported $75,000 in financing: $65,000 from stock issuance and $10,000 from a related-party loan.
Changes, outlook, and risks
- Six-month net loss decreased to $7,031 from $8,224 in 2010; quarterly loss decreased to $1,516 from $2,402. Six-month professional fees were $4,700 versus $5,700, and general and administrative expenses were $2,331 versus $2,524.
- The company abandoned its Que 1-4 mineral property after exploration work and was investigating other opportunities. Its stated next-12-month plan was to seek another property or other business opportunity; success, costs, and required resources were uncertain.
- Management said available cash and director loans were expected to support operations for 12 months. Separately, the filing states that continued operations depend on shareholder support, equity financing, and eventual profitable operations, and that these conditions raise substantial doubt about the company’s ability to continue as a going concern.
- Disclosure controls and procedures were reported ineffective as of June 30, 2011. Management described CEO review of financial materials as a mitigation measure; no material change in internal control over financial reporting was reported during the quarter.
- The filing cautions that interim results are not necessarily indicative of full-year results. It provides no revenue outlook or quantified financing plan.
Important facts to verify
- Confirm the issuer: the supplied document identifies Tamandare Explorations Inc., despite the request naming Tonix Pharmaceuticals Holding Corp.
- Verify current funding and liquidity, including repayment expectations for the $10,000 related-party loan and the basis for management’s 12-month cash runway estimate.
- Check whether the company obtained a new property or business opportunity and whether additional financing was raised after June 30, 2011.
- Review the going-concern disclosure and the reported ineffective disclosure controls.