SEC Filing Summary: Zeta Acquisition Corp. III
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended September 30, 2009. The registrant is Zeta Acquisition Corp. III, a Delaware corporation organized as a "blank check" company and shell company. The entity is in the development stage with no specific business plan other than to investigate and acquire a target company. The filing notes a discrepancy in the request metadata regarding "Kura Oncology, Inc."; the provided text explicitly identifies the registrant as Zeta Acquisition Corp. III.
Key Financial Metrics
| Metric | As of/For Period Ended Sep 30, 2009 | As of/For Period Ended Dec 31, 2008 |
|---|---|---|
| Cash and Cash Equivalents | $13,031 | $7,508 |
| Total Assets | $16,031 | $7,508 |
| Total Liabilities | $27,160 | $6,108 |
| Stockholders' Equity (Deficit) | ($11,129) | $1,400 |
| Net Loss (9 Months) | ($12,529) | ($24,515) |
| Net Loss (Cumulative from Inception) | ($61,129) | N/A |
| Notes Payable (Stockholders) | $25,000 | $0 |
Revenue: $0 (No revenue generated since inception).
Liquidity: The company has nominal assets and relies on capital investment or loans from related parties to fund operations.
Material Changes vs. Prior Period
- Liabilities: Total liabilities increased from $6,108 to $27,160, primarily due to the issuance of $25,000 in unsecured promissory notes to stockholders during 2009.
- Equity Position: The company moved from a positive equity position of $1,400 to a deficit of ($11,129) due to cumulative operating losses.
- Cash Flow: Net cash used in operating activities for the nine months ended September 30, 2009, was $19,477, compared to $29,989 in the same period in 2008. This was offset by $25,000 in financing proceeds from stockholder notes.
- Prepaid Expenses: The company recorded $3,000 in prepaid expenses, an increase from $0 in the prior year-end.
Outlook, Risks, and Management Commentary
- Going Concern: Management asserts that the company's ability to continue as a going concern is dependent on its ability to secure additional financing and consummate a business combination. The financial statements do not include adjustments that might be necessary if the company cannot continue as a going concern.
- Business Plan: The company intends to identify a target business for acquisition or merger. It does not restrict potential targets to any specific industry or geography.
- Risks: The company is a "shell company" with no operations. There is no assurance that a business combination will be achieved. The company is dependent on related parties for funding.
- Unusual Items: The company utilizes office space and equipment of an officer/director at no cost. Notes payable to stockholders bear 6% interest and are due on demand.
Investor Verification Checklist
- Verify the identity of the registrant (Zeta Acquisition Corp. III) versus the metadata request (Kura Oncology, Inc.) to ensure the correct filing is being analyzed.
- Confirm the status of the $25,000 in notes payable to stockholders and whether they have been repaid or converted.
- Assess the company's ability to raise additional capital given the current deficit and lack of operating revenue.
- Review the "Going Concern" disclosure in Note 1 to understand the severity of liquidity risks.
- Check for any subsequent events or updates regarding a potential business combination since the filing date of November 16, 2009.