Filing Overview
The provided document is a Form 10-Q for R&R Acquisition VI, Inc., not ADMA Biologics, Inc. It covers the quarter and six months ended December 31, 2011, with comparative periods ended December 31, 2010. The request metadata specifies “ADMA Biologics” and “2010 Q2,” which does not match the filing text.
Business Context and Reporting Period
R&R Acquisition VI, Inc. is a Delaware development-stage, blank-check company formed to identify and complete a merger or other business combination with an operating business. As of December 31, 2011, it had not commenced operations, had no employees or revenues, and had no definitive agreement with a prospective target.
The company reported 2,500,000 common shares outstanding as of January 31, 2012. It was designated as a smaller reporting company and identified itself as a shell company.
Financial Performance and Position
| Metric | Three Months Ended December 31, 2011 | Six Months Ended December 31, 2011 |
|---|---|---|
| Revenue | $0 | $0 |
| Total operating expenses | $8,329 | $13,503 |
| Interest income | $1 | $2 |
| Net loss | $8,328 | $13,501 |
| Basic and diluted loss per share | $0.00, rounded | $0.00, rounded |
- Professional fees were $7,700 for the six months ended December 31, 2011; other operating expenses were $5,803.
- Cash and cash equivalents were $8,079 at December 31, 2011, compared with $8,512 at June 30, 2011.
- Accrued expenses were $5,306 at December 31, 2011, versus $9,818 at June 30, 2011.
- Working capital and total stockholders’ equity were each $2,773 at December 31, 2011.
- Accumulated deficit was $153,557 at December 31, 2011.
- The filing does not report outstanding debt, interest-bearing borrowings, or material capital expenditures.
Cash Flow and Liquidity
- Net cash used in operating activities was $18,013 for the six months ended December 31, 2011, compared with $17,412 in the prior-year period.
- Net cash provided by financing activities was $17,580, consisting of contributed capital.
- Cash decreased by $433 during the six-month period, from $8,512 to $8,079.
- Since inception, operating activities have used $148,251 of cash and financing activities have provided $156,330.
- Management stated that the company depends on future loans from existing stockholders or management or on future equity or debt financing. There is no assurance that such funding will be available or provided on acceptable terms.
Material Changes Versus Prior Comparable Period
- Three-month operating expenses increased to $8,329 from $5,229, primarily because of higher filing fees.
- Six-month operating expenses increased to $13,503 from $9,874, also primarily due to higher filing fees.
- Six-month net loss increased to $13,501 from $9,872.
- Six-month operating cash usage increased modestly to $18,013 from $17,412.
- Cash declined by $433 during the current six-month period, compared with an $8,912 decrease in the prior-year period.
- Accrued expenses decreased by $4,512 during the current six-month period, compared with a $7,540 decrease in the prior-year period.
Outlook, Risks, and Unusual Items
Management’s stated objective is to complete a business combination with an operating company. No specific target, industry, geography, or transaction has been selected, and the company cannot assure investors that a suitable combination will be completed.
- The company has no operating business, revenues, or internally generated cash flow.
- Success depends substantially on completing a single business combination, leaving the company with limited diversification and exposure to the performance of one target business.
- Additional financing may be required to complete a transaction or continue operations.
- Management and officers devote only limited, part-time or as-needed time to the company, and no full-time employees are anticipated while opportunities are evaluated.
- The company has a quarterly office and administrative services obligation of $500 under an agreement effective January 1, 2009.
- No off-balance-sheet arrangements or subsequent events requiring disclosure were reported.
- The financial statements are unaudited and condensed; the filing cautions that interim results are not necessarily indicative of full-year results.
- Management concluded that disclosure controls and procedures were effective as of December 31, 2011, and reported no material changes in internal control over financial reporting.
Investor Verification Items
- Verify the issuer and period: the filing is for R&R Acquisition VI, Inc. for the period ended December 31, 2011, not ADMA Biologics for 2010 Q2.
- Confirm whether any business combination target or definitive agreement was announced after the filing date.
- Assess the company’s ability to fund ongoing SEC, professional, and administrative costs with only $8,079 of cash.
- Review the terms and availability of any anticipated stockholder or management financing.
- Reconcile accrued expenses, contributed capital, and the accumulated development-stage deficit.
- Evaluate the risks associated with the company’s shell-company status, penny-stock classification, and dependence on a single future transaction.