SEC Filing Summary: R&R Acquisition VI, Inc. (10-Q)
Business Context and Reporting Period
This filing covers the quarterly period ended December 31, 2009. The registrant is R&R Acquisition VI, Inc., a Delaware corporation classified as a "blank check" company and a development stage entity. The company was incorporated on June 2, 2006, with the sole objective of acquiring or merging with an operating business. As of the reporting date, the company had not commenced any operations, had no employees, and maintained no specific business plan other than seeking a target for a business combination.
Key Financial Metrics
| Metric | Three Months Ended Dec 31, 2009 | Six Months Ended Dec 31, 2009 | Inception to Dec 31, 2009 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Total Operating Expenses | $4,327 | $8,146 | $101,317 |
| Net Loss | $(4,326) | $(8,144) | $(101,214) |
| Cash and Cash Equivalents | $6,844 (as of Dec 31, 2009) | ||
| Working Capital | $1,036 (as of Dec 31, 2009) | ||
| Accrued Expenses (Liabilities) | $5,808 (as of Dec 31, 2009) | ||
| Stockholders' Equity | $1,036 (as of Dec 31, 2009) |
Capital Structure: 2,500,000 shares of common stock outstanding. No preferred stock issued. The company received $12,000 in contributed capital during the six months ended December 31, 2009.
Material Changes vs. Prior Period
- Expenses: Operating expenses increased slightly from $3,771 in the three months ended December 31, 2008, to $4,327 in the same period in 2009. For the six-month period, expenses rose from $7,127 in 2008 to $8,146 in 2009. These costs are primarily attributed to professional and filing fees.
- Liquidity: Cash and cash equivalents decreased from $8,688 at June 30, 2009, to $6,844 at December 31, 2009, reflecting a net cash outflow of $1,844 from operations.
- Liabilities: Accrued expenses decreased from $11,508 at June 30, 2009, to $5,808 at December 31, 2009, indicating a reduction in outstanding obligations.
Outlook, Risks, and Management Commentary
- Business Plan: The company has no definitive agreements with prospective business combination candidates. Success is entirely dependent on finding a suitable target company to merge with.
- Liquidity Risk: The company has no revenue and relies on future loans from stockholders or management to continue operations. There is no assurance that such funding will be available on acceptable terms.
- Operational Constraints: Management is part-time, and the company does not anticipate hiring full-time employees until a business combination is consummated. The company expects to have sufficient proceeds for only a single business combination.
- Forward-Looking Statements: The filing includes standard disclaimers that actual results may differ materially from expectations due to risks inherent in the "blank check" business model.
- Subsequent Events: No material subsequent events were identified through January 27, 2010.
Investor Verification Checklist
- Verify the company's status as a "shell company" and "blank check" entity with no active operations.
- Confirm the adequacy of the $6,844 cash balance to sustain operations until a potential merger.
- Review the reliance on contributed capital and potential loans from insiders for future funding.
- Assess the lack of specific target candidates or definitive merger agreements.
- Note the accumulated deficit of over $101,000 since inception.