Tuhura Biosciences, Inc. quarterly report, Q1 FY2012

Business context and reporting period

The supplied filing identifies the registrant as Berry Only Inc., not Tuhura Biosciences, Inc. It is an unaudited Form 10-Q for the three months ended September 30, 2011 (the company’s fiscal first quarter, with a June 30 year-end). The filing describes Berry Only as a development-stage company and checks the shell-company box. Its prior plan to market sanitizing wipes ended after the dealership agreement lapsed; it is seeking business-combination opportunities.

Financial results and position

Expenses and net loss fell about 51% year over year, primarily reflecting lower professional fees and no marketing expense after the dealership agreement ended. Consulting and other general and administrative expenses were $1,162 and $696, respectively, in 2011. No meaningful operating margin is available because there was no revenue.

At September 30, 2011, total assets were $6,837, comprising cash of $6,837; accounts receivable was zero, down from $5,000 at June 30. Accounts payable and total liabilities were zero. Stockholders’ equity was $6,837. The company reported no debt. Quarterly operating cash flow was positive $1,142, reflecting the $5,000 reduction in receivables despite the net loss; ending cash increased from $5,695. There was no investing or financing cash flow during the quarter. Cumulative loss since inception was $42,576 (cumulative comprehensive loss $42,663).

Outlook, risks, and unusual items

• The company had no operating revenue and no definitive agreement for a new business opportunity; management said it was negotiating with several parties.
• Management expects a future acquisition or business opportunity to require additional financing. The company relies on raising capital and says it cannot assure it will obtain funding or complete a transaction.
• The filing highlights substantial doubt about the company’s ability to continue as a going concern. Management believed its actions could support operations through the next fiscal year, but gave no assurance of success; the financial statements include no adjustments for a possible failure to continue.
• The Wireless Wipes dealership required annual distribution of 10,000 pouches; the company did not achieve the required sales and the agreement lapsed.
• No securities were issued during the quarter. The filing reports no legal proceedings, defaults on senior securities, or significant off-balance-sheet arrangements. Management reported disclosure controls were effective and no material control changes occurred during the quarter.

Important facts for investors to verify

• Confirm the issuer identity: the provided filing is for Berry Only Inc., not Tuhura Biosciences, Inc.
• Reconcile share counts: the cover reports 3,944,000 common shares outstanding as of November 10, 2011, while the balance sheet and capital note report 5,950,000 shares outstanding at September 30.
• Check the filing’s inconsistencies in comparative balance-sheet dates and cash-flow table labels; use the original filed statements to confirm the figures and periods.
• Assess cash sufficiency and prospects for additional financing, and verify whether any business-combination negotiations later resulted in a definitive agreement.