Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2009, 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 a public reporting company.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2009 | Six Months Ended June 30, 2008 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(8,985) | $(20,301) |
| Operating Expenses | $5,989 | $18,009 |
| Interest Expense | $2,996 | $2,292 |
| Cash and Cash Equivalents | $2,170 | $2,266 |
| Total Assets | $2,170 | $2,218 |
| Total Liabilities | $85,116 | $76,179 |
| Shareholders' Deficit | $(82,945) | $(73,961) |
| Working Capital Deficiency | $(22,761) | $(24,134) |
Debt and Liquidity: The company holds minimal cash ($2,170) against total liabilities of $85,116. Liabilities include $60,184 in notes payable to related parties, $11,564 in accounts payable, and $11,498 in accrued interest. The company has no lines of credit.
Material Changes vs. Prior Period
- Expense Reduction: Total operating expenses decreased significantly from $18,009 in the prior year period to $5,989, primarily due to a reduction in "Other costs" and professional fees.
- Net Loss Improvement: The net loss narrowed from $(20,301) to $(8,985), despite a slight increase in interest expense.
- Related Party Borrowing: The company borrowed an additional $10,357 from related parties during the six-month period to fund working capital, increasing total related party notes payable.
- Cash Position: Cash decreased marginally by $48 due to operating losses exceeding financing inflows.
Outlook, Risks, and Management Commentary
Going Concern: Management explicitly states that the company's financial condition raises substantial doubt about its ability to continue as a going concern. The company has a significant accumulated deficit and negative working capital. Continuation is dependent on raising additional funds and successfully implementing a business plan (merger/acquisition).
Plan of Operations: The company is a "blank check" entity seeking to merge with a private company to provide it with a public listing. Management anticipates expenses of approximately $20,000 for the next 12 months and expects to rely on advances from the president to cover these costs. There are no current negotiations for a specific acquisition.
Risks:
- No assurance of finding a suitable merger target.
- Potential significant dilution to existing shareholders upon a future acquisition.
- Lack of capital to fund operations without further related-party advances.
Investor Verification Checklist
- Identity Verification: Confirm the registrant is Cactus Ventures, Inc., not Actinium Pharmaceuticals, Inc.
- Shell Status: Verify the company has no revenue, no employees, and no active business operations.
- Liquidity Risk: Note the severe negative working capital ($22,761 deficiency) and reliance on related-party loans for survival.
- Related Party Transactions: Review the $60,184 in notes payable to related parties and the $10,357 borrowed during the period.
- Going Concern: Acknowledge the explicit "substantial doubt" disclosure regarding the company's ability to continue operations.