SEC Filing Summary: Plastron Acquisition Corp. II
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2010. The registrant is Plastron Acquisition Corp. II, a Delaware corporation classified as a "shell company" and a "blank check" company. The entity was formed to pursue a business combination through a merger or acquisition with an operating business. As of the reporting date, the Company has no active operations, generates no revenue, and is in the development stage.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2010 | As of June 30, 2010 |
|---|---|---|
| Revenue | $0 | N/A |
| Net Loss | $(16,754) | N/A |
| Cash and Cash Equivalents | N/A | $1,078 |
| Total Assets | N/A | $1,078 |
| Total Liabilities | N/A | $66,685 |
| Stockholders' Deficit | N/A | $(65,607) |
| Working Capital | N/A | $(65,607) |
| Debt (Related Party Notes) | N/A | $60,100 |
| Accrued Interest (Related Party) | N/A | $6,585 |
Note: The filing does not provide margin data as there is no revenue.
Material Changes vs. Prior Period
- Liquidity Decline: Cash and cash equivalents decreased from $6,559 as of December 31, 2009, to $1,078 as of June 30, 2010, a reduction of $5,481.
- Increased Liabilities: Total current liabilities increased from $55,412 to $66,685. This was driven by an increase in related party notes payable (from $49,000 to $60,100) and accrued interest (from $4,677 to $6,585).
- Accounts Payable: Accounts payable were reduced to $0 from $1,735 in the prior period.
- Net Loss: The net loss for the six months ended June 30, 2010, was $(16,754), compared to $(15,921) for the same period in 2009.
Outlook, Risks, and Management Commentary
- Going Concern: The Company has an accumulated deficit of $(96,535) and a working capital deficiency. Management states these factors raise substantial doubt about the Company's ability to continue as a going concern. Continuation is dependent on obtaining additional financing or consummating a business combination.
- Business Plan: The Company intends to locate a suitable acquisition candidate. It anticipates incurring costs for filing Exchange Act reports and investigating potential targets over the next 12 months.
- Funding Strategy: Management plans to meet future costs through treasury funds, deferral of fees, or additional loans/equity from stockholders and management. There is no assurance that such funding will be available.
- Risks: The Company is a "blank check" company with no specific business plan other than a merger. It faces risks associated with financially unstable target companies and the inability to diversify investments.
- Related Party Transactions: The Company relies heavily on loans from Broadband Capital Management, LLC, and individual directors (Michael Rapp, Philip Wagenheim, Clifford Chapman). These loans bear interest rates ranging from 4% to 8.25% and are due upon demand or upon consummation of a merger.
Investor Verification Checklist
- Capital Adequacy: Verify if the Company has secured the additional financing required to sustain operations for the next 12 months given the $1,078 cash balance and $66,685 in liabilities.
- Related Party Debt: Confirm the terms and repayment status of the $60,100 in related party notes and the $6,585 in accrued interest.
- Merger Progress: Assess if there are any material agreements or discussions regarding a target company, as the business model relies entirely on a future acquisition.
- Share Count: Note that 2,061,856 shares of common stock are outstanding; verify if any new equity issuances have occurred since the filing date to fund operations.