SEC Filing Summary: Standard Capital Corporation (10-Q)
Business Context and Reporting Period
This is a Quarterly Report (Form 10-Q) for Standard Capital Corporation (Note: Input metadata referenced "VolitionRx Ltd," but the filing text identifies the registrant as Standard Capital Corporation) for the period ended May 31, 2010. The company is a Delaware corporation classified as a development stage company and a small reporting company. Its primary purpose is acquiring and developing mineral properties; however, its previous mineral claim lapsed in February 2008, and it currently holds no mineral claims or assets.
Key Financial Metrics
| Metric | Value (May 31, 2010) | Comparison (Aug 31, 2009) |
|---|---|---|
| Cash and Cash Equivalents | $106 | $3,441 |
| Total Current Assets | $106 | $3,441 |
| Total Current Liabilities | $114,211 | $110,981 |
| Stockholders' Deficiency | ($114,105) | ($107,540) |
| Accumulated Deficit (Inception to Date) | ($216,005) | ($206,290) |
| Revenue | $0 | $0 |
| Net Loss (9 Months Ended May 31, 2010) | ($9,715) | ($9,592) |
| Net Loss (3 Months Ended May 31, 2010) | ($3,209) | ($3,101) |
Liquidity & Debt: The company has minimal liquidity ($106 cash) and significant current liabilities, primarily accounts payable ($98,223) and related party advances ($15,988). There is no long-term debt reported.
Material Changes vs. Prior Period
- Cash Depletion: Cash decreased by approximately 97% from $3,441 to $106 over the nine-month period.
- Liabilities: Total current liabilities increased by $3,230, driven by an increase in accounts payable and related party advances.
- Operating Loss: The net loss for the nine months ended May 31, 2010, was $9,715, slightly higher than the $9,592 loss in the same period in 2009.
- Asset Status: The company continues to hold no mineral claims or significant assets, maintaining its status as a shell/development stage entity.
Outlook, Risks, and Management Commentary
Going Concern: Management explicitly states that substantial doubt exists regarding the company's ability to continue as a going concern. The company requires additional working capital to service debt and acquire a new mineral claim.
Capital Needs: Management estimates a minimum of $24,305 is required for the next 12 months to cover operating expenses (auditing, filing fees, etc.). To also settle outstanding third-party accounts payable ($98,223), the total funding requirement is approximately $122,528.
Strategy: The company plans to raise funds through the sale of common stock or advances from directors. No specific price or share count has been decided.
Risks:
- No Assets: The company has no mineral claims to build value upon.
- Internal Controls: Management identified material weaknesses in internal controls, including a lack of independent directors on the Audit Committee, limited segregation of duties, and no written internal control manual.
- Management Capacity: Officers and directors have other outside business activities and devote limited time (5–15 hours/month) to the company.
- Dilution: Future equity raises will dilute existing shareholders.
Investor Verification Checklist
- Verify the discrepancy between the metadata company name ("VolitionRx Ltd") and the filing registrant ("Standard Capital Corporation").
- Confirm the company's ability to raise the estimated $122,528 required to settle debts and fund operations.
- Assess the timeline and likelihood of acquiring a new mineral claim given the lack of current assets.
- Review the status of the $98,223 in accounts payable to determine if creditors are demanding immediate payment.
- Monitor the company's compliance with SEC filing requirements to avoid delisting from the OTCBB.