SEC Filing Summary: Zeta Acquisition Corp. III (10-Q)
Business Context and Reporting Period
This filing covers the quarterly period ended March 31, 2011. 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 to achieve long-term growth. The filing text does not contain information regarding "Kura Oncology, Inc." as indicated in the request metadata; the document explicitly pertains to Zeta Acquisition Corp. III.
Key Financial Metrics
| Metric | Q1 2011 | Q1 2010 | Cumulative (Inception to Mar 31, 2011) |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Net Loss | $(5,154) | $(4,306) | $(96,145) |
| Cash and Cash Equivalents | $24,634 | $10,995 | $24,634 |
| Total Assets | $25,259 | $11,142 | $25,259 |
| Total Liabilities | $71,404 | $10,536 | $71,404 |
| Stockholders' Deficit | $(46,145) | $(1,394) | $(46,145) |
| Notes Payable (Stockholders) | $60,000 | $60,000 | $60,000 |
Liquidity: The company has a working capital deficit. Cash on hand is $24,634, while current liabilities total $71,404. The company relies on related party funding to continue operations.
Material Changes vs. Prior Period
- Net Loss Increase: Net loss for the three months ended March 31, 2011, was $5,154, an increase of $848 compared to the $4,306 loss in the same period in 2010. This is primarily due to increased interest expense ($888 vs. $370) and general and administrative expenses ($4,266 vs. $3,936).
- Cash Position: Cash decreased by $2,264 during the quarter due to operating activities, despite no financing or investing cash flows in the current period.
- Liabilities: Accounts payable and accrued expenses increased by $1,015 to $11,404.
Outlook, Risks, and Management Commentary
- Going Concern: Management explicitly states that the company's ability to continue as a going concern is dependent on its ability to generate future profitable operations and/or obtain necessary financing. There is no assurance that additional funding will be available.
- Business Plan: The company has not identified any business combination. Its objective is to acquire a target company, potentially through a reverse merger. No specific industry or geographical restrictions apply.
- Risks: Significant risks include the lack of operating history, dependence on stockholders for funding, and the uncertainty of finding a suitable acquisition target. The company is classified as a shell company with nominal assets.
- Unusual Items: The company utilizes office space and equipment of an officer/director at no cost. Interest of $3,612 is accrued and unpaid on stockholder notes.
Investor Verification Checklist
- Identity Verification: Confirm the target of analysis is Zeta Acquisition Corp. III, not Kura Oncology, Inc., as the filing text does not match the metadata company name.
- Funding Status: Verify if the $60,000 in notes payable to stockholders has been repaid or if additional related-party loans have been secured since March 31, 2011.
- Acquisition Progress: Determine if the company has identified a target business or entered into any merger agreements, as none were disclosed in this filing.
- Liquidity Runway: Assess if the remaining cash of $24,634 is sufficient to cover filing fees and administrative costs for the next 12 months without additional capital.