SEC Filing Summary: Berry Only Inc. (Form 10-K)
Business Context and Reporting Period
This filing covers the fiscal year ended June 30, 2012, for Berry Only Inc. (Note: The input metadata referenced "Tuhura Biosciences," but the filing text explicitly identifies the registrant as Berry Only Inc., a Nevada corporation). The company is classified as a development stage company and a shell company. It has no active revenue-generating operations. A previous exclusive dealership agreement for sanitizing wipes lapsed due to failure to meet sales targets. The company is currently seeking a business combination or merger with an established entity to pursue a viable business opportunity.
Key Financial Metrics
| Metric | Year Ended June 30, 2012 | Year Ended June 30, 2011 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(18,885) | $(33,136) |
| Accumulated Deficit (Since Inception) | $(57,603) | $(38,718) |
| Cash and Cash Equivalents | $1,794 | $5,695 |
| Working Capital | $1,794 | $10,695 |
| Current Liabilities | $9,984 | $0 |
| Shares Outstanding | 3,944,000 | 5,950,000 |
Note: The company reported no debt other than a $7,484 loan from an officer. There are no long-term debt obligations.
Material Changes vs. Prior Period
- Expense Reduction: Total operating expenses decreased by approximately 43% from $33,136 in 2011 to $18,885 in 2012, primarily due to a reduction in "Other Selling, General & Administrative" expenses.
- Share Capital: The company cancelled 2,006,000 shares of common stock in October 2011, reducing the outstanding share count from 5,950,000 to 3,944,000.
- Liquidity Decline: Cash on hand dropped by 68% to $1,794. Working capital decreased by 84% due to the burn of cash reserves and the absence of new equity financing in the current period.
- Liabilities: Current liabilities increased from $0 to $9,984, driven by accounts payable ($2,500) and a related-party loan from an officer ($7,484).
Outlook, Risks, and Management Commentary
- Going Concern: The independent auditors have issued a going concern opinion, stating there is substantial doubt about the company's ability to continue operations. The company lacks sufficient working capital to fund its plan of operation for the next 12 months (estimated at $20,000).
- Financing Needs: The company anticipates raising additional funds through private placements of common stock. There is no assurance that such financing will be available. Failure to secure funding will result in business failure.
- Business Strategy: Management is actively negotiating with several parties for a business combination but has no definitive agreements. Upon a potential merger, current management may resign, and existing shareholders may face significant dilution.
- Market Risks: The stock is quoted on the OTC Bulletin Board (Symbol: BRRY.OB) but has had no trading activity since February 2011. It is classified as a "penny stock," subject to restrictive trading rules that may limit liquidity.
Investor Verification Checklist
- Verify Company Identity: Confirm the registrant is Berry Only Inc. and not Tuhura Biosciences, as the filing text contradicts the metadata provided.
- Assess Liquidity Risk: Verify the company's ability to raise the required $20,000 in operating capital given the current cash balance of only $1,794.
- Check for Trading Activity: Confirm the lack of secondary market liquidity; no trades have occurred since February 2011.
- Monitor Related Party Transactions: Review the $7,484 loan from the officer and the 50.42% ownership stake held by the sole director/officer.
- Track Business Combination Progress: Monitor for any Form 8-K filings indicating a definitive agreement for a merger or acquisition, which is the company's only path to revenue.