SEC filing summary
Issuer and period: The supplied filing is for AFH Acquisition X, Inc., not Bone Biologics Corp. It is a Form 10-Q for the quarter ended April 30, 2012; the financial statements also report six-month results. The company describes itself as a development-stage blank-check company and a shell company, wholly owned by AFH Holding & Advisory, LLC.
Financial results and position
- Revenue: $0 for the three and six months ended April 30, 2012, and $0 cumulatively since inception.
- Net loss: $2,150 for the quarter and $3,506 for the six months, versus $1,202 and $2,477, respectively, in 2011. Six-month expenses before franchise tax were $3,106, compared with $2,077 in 2011. No operating margins are meaningful because there was no revenue.
- Cash flow: Cash was $0 at April 30, 2012. Operating cash flow was $0 for the six-month period, as the $3,506 loss was offset by an increase in accrued expenses. No investing or financing cash flow was reported for that period.
- Assets and liquidity: Total assets were $0. Current liabilities were $32,474, comprising $8,426 of accrued expenses and $24,048 due to the parent. The filing reports no repayment terms for the parent advance.
- Equity and shares: Accumulated deficit was $57,474; stockholders’ deficit was $32,474. There were 5,000,000 common shares outstanding as of June 14, 2012.
Changes, outlook, and risks
- Compared with October 31, 2011, accrued expenses increased by $3,506, total liabilities rose from $28,968 to $32,474, and accumulated deficit increased by the six-month net loss. Cash remained $0.
- The company reported no active operating business and no revenue since inception. It was seeking an acquisition or merger but said it was not negotiating with a target as of the financial-statement date.
- Management said the company would rely on common-stock issuance and additional shareholder contributions to fund administrative expenses. It cautioned that it might be unable to raise equity or complete an acquisition; any business combination could significantly dilute existing shareholders.
- The filing identifies recurring losses and states that continued existence depends on raising capital or acquiring a marketable company. It was prepared on a going-concern basis and includes no adjustments that might be needed if the company cannot continue.
- No legal proceedings or material off-balance-sheet arrangements were reported. Management concluded disclosure controls were effective and reported no significant change in internal control over financial reporting.
Important facts for investors to verify
- Confirm issuer identity: the source filing names AFH Acquisition X, Inc., whereas the request metadata names Bone Biologics Corp.
- Confirm the reporting period and the filing’s six-month cash-flow presentation; portions of the supplied text have inconsistent period labels.
- Verify the terms, repayment expectations, and continued availability of the $24,048 parent advance, and how the company plans to fund operations with no cash.
- Check for subsequent developments regarding a target acquisition, financing, dilution, and the company’s going-concern position.