Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended September 30, 2009, for Cactus Ventures, Inc. (Note: The input metadata referenced "Actinium Pharmaceuticals," but the filing text explicitly identifies the registrant as Cactus Ventures, Inc.). The company is a Nevada corporation classified as a shell company and a smaller reporting company. It has no active operations, no employees, and is currently seeking a merger or acquisition target to become a public reporting entity.
Key Financial Metrics
| Metric | Period Ended Sep 30, 2009 | Period Ended Sep 30, 2008 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(12,834) | $(23,631) |
| Operating Expenses | $8,221 | $20,103 |
| Interest Expense | $4,613 | $3,528 |
| Cash and Cash Equivalents | $2,146 | $2,218 |
| Total Assets | $2,146 | $2,218 |
| Total Liabilities | $88,940 | $76,179 |
| Shareholders' Deficit | $(86,794) | $(73,961) |
| Working Capital | $(21,405) | $(24,134) |
| Notes Payable (Related Parties) | $65,389 | $49,827 |
Material Changes vs. Prior Period
- Reduced Net Loss: The net loss for the nine months ended September 30, 2009, decreased to $12,834 from $23,631 in the prior year period, primarily due to a significant reduction in operating expenses.
- Expense Reduction: Total operating expenses dropped from $20,103 to $8,221. This was driven by a decrease in "Other costs" (from $7,191 to $634) and "Professional fees" (from $12,840 to $7,515).
- Increased Debt: Notes payable to related parties increased by $15,562 to $65,389, reflecting new borrowings for working capital.
- Accrued Liabilities: Accrued interest increased by $4,613 to $13,115, while accrued legal fees decreased significantly from $5,490 to $570.
Outlook, Risks, and Management Commentary
- Going Concern: The filing explicitly states that the company's net loss, negative working capital, and stockholders' deficit raise substantial doubt about its ability to continue as a going concern. Continuation is dependent on raising additional funds and implementing a business plan.
- Business Plan: The company has no specific business plan other than searching for a merger or acquisition target. It anticipates expenses of approximately $20,000 for the next 12 months.
- Liquidity: Management anticipates meeting future needs through advances from the president, though no assurances are given. The company has no lines of credit or other assets.
- Risks: Risks include the inability to locate a suitable target company, failure to consummate a merger, and significant dilution to existing shareholders upon any future acquisition.
Investor Verification Checklist
- Identity Discrepancy: Verify the correct registrant name (Cactus Ventures, Inc.) versus the metadata provided (Actinium Pharmaceuticals, Inc.).
- Shell Status: Confirm the company has no revenue, no employees, and is solely seeking a reverse merger or acquisition.
- Related Party Debt: Review the $65,389 in notes payable to related parties and the terms of repayment.
- Going Concern Risk: Assess the likelihood of the company raising capital given the $2,146 cash balance and $88,940 in liabilities.
- Share Count: Note the 11,155,008 shares of common stock outstanding, which may be subject to significant dilution in a future transaction.