RIDGEFIELD ACQUISITION CORP 10-Q for FY2023 Q3
RIDGEFIELD ACQUISITION CORP (RDGAD)
About this 10-Q
RIDGEFIELD ACQUISITION CORP filed this 10-Q on November 13, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).
Headline figures
Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Net loss
- $12.94K
- compared with a net loss of $16.21K a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
OR
For the transition period from to
Commission file number
(Exact Name of Registrant as Specified in Its charter)
(State or Other Jurisdiction of | (I.R.S. Employer |
Incorporation or Organization) | Identification No.) |
(Address of Principal Executive Offices) (Zip Code)
(
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer ☐ |
| Accelerated filer ☐ |
| Smaller reporting company | |
|
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes
As of November 13, 2023, the registrant had
RIDGEFIELD ACQUISITION CORP.
FORM 10-Q
Table of Contents
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Consolidated Statements of Changes in Stockholders’ Equity (Deficit) | 3 | |
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Management’s Discussion and Analysis of Financial Condition and Results Of Operations | 7 | |
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i
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
RIDGEFIELD ACQUISITION CORP. AND SUBSIDIARY
Consolidated Balance Sheets
(unaudited)
| | September 30, | | December 31, | ||
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| 2022 | ||
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents | | $ | | $ | | |
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TOTAL ASSETS | | $ |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT | |
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CURRENT LIABILITIES | |
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Accounts payable and accrued expenses | | $ | |
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TOTAL LIABILITIES | |
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COMMITMENTS AND CONTINGENCIES | |
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STOCKHOLDERS’ EQUITY (DEFICIT) | |
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Preferred stock, $ | |
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Common stock, $ | |
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Additional paid in capital | |
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Accumulated deficit | |
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TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | |
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TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT) | | $ | |
| $ | |
See accompanying notes to these unaudited consolidated financial statements.
1
RIDGEFIELD ACQUISITION CORP. AND SUBSIDIARY
Consolidated Statements of Operations
(unaudited)
| | Three Months Ended | | Nine Months Ended | ||||||||
| | September 30, | | September 30, | ||||||||
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OPERATING EXPENSES |
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General and administrative expenses | | $ | ( | | $ | ( | | $ | ( | | $ | ( |
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Total Operating Expenses | | | ( |
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OPERATING LOSS | | | ( |
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OTHER EXPENSE | |
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Other expense | | | ( |
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Interest expense | |
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Total Other Expense | |
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NET LOSS | | $ | ( |
| $ | ( | | $ | ( |
| $ | ( |
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NET LOSS PER COMMON SHARE | |
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Basic and Dilutive | | $ | — |
| $ | ( | | $ | ( |
| $ | ( |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - | |
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Basic and Dilutive | |
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See accompanying notes to these unaudited consolidated financial statements.
2
RIDGEFIELD ACQUISITION CORP. AND SUBSIDIARY
Consolidated Statements of Changes in Stockholders’ Equity (Deficit)
For the Three months Ended September 30, 2023 and 2022
(unaudited)
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| | | | Additional | | | | |
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| | Common Stock | | Paid in | | Accumulated | | | | |||||
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| Shares |
| Amount |
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| Deficit |
| Totals | ||||
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Balance, December 31, 2021 | | | | $ | | | $ | | | $ | ( | | $ | |
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Net loss | | — | | | — | | | — | | | ( | | | ( |
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Balance, March 31, 2022 | | | | $ | | | $ | | | $ | ( | | $ | ( |
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Net loss | | — | | | — | | | — | | | ( | | | ( |
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Balance, June 30, 2022 | | | | $ | | | $ | | | $ | ( | | $ | ( |
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Net loss | | — | | | — | | | — | | | ( | | | ( |
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Balance, September 30, 2022 |
| | | $ | |
| $ | | | $ | ( |
| $ | ( |
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| | Common Stock | | Paid in | | Accumulated | | | | |||||
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| Shares |
| Amount |
| Capital |
| Deficit |
| Totals | ||||
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Balance, December 31, 2022 | | | | $ | | | $ | | | $ | ( | | $ | ( |
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Net loss | | — | | | — | | | — | | | ( | | | ( |
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Balance, March 31, 2023 | | | $ | | | $ | | | $ | ( | | $ | ( | |
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Net loss | | — | | | — | | | — | | | ( | | | ( |
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Balance, June 30, 2023 | | | $ | | | $ | | | $ | ( | | $ | ( | |
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Net loss | | — | | | — | | | — | | | ( | | | ( |
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Balance, September 30, 2023 |
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| $ | |
| $ | ( |
| $ | ( |
See accompanying notes to these unaudited consolidated financial statements.
3
RIDGEFIELD ACQUISITION CORP. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(unaudited)
| | Nine months Ended | ||||
| | September 30, | ||||
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| 2023 |
| 2022 | ||
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OPERATING ACTIVITIES | | |
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Net loss | | $ | ( | | $ | ( |
Adjustments to reconcile net loss to net cash used in operating activities: | |
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Changes in assets and liabilities: | |
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Increase in accounts payable and accrued expenses | | | | | | |
Increase in accrued interest - related party | |
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Net cash used in operating activities | | $ | ( |
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FINANCING ACTIVITIES | |
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Proceeds from related party note payable | |
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Net cash provided by financing activities | | $ | |
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NET DECREASE (INCREASE) IN CASH AND CASH EQUIVALENTS | |
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CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | |
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CASH AND CASH EQUIVALENTS, END OF PERIOD | | $ | |
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SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |
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Cash paid for interest | | $ | — |
| $ | — |
Cash paid for income taxes | | $ | — |
| $ | — |
See accompanying notes to these unaudited consolidated financial statements.
4
RIDGEFIELD ACQUISITION CORP. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(unaudited)
NOTE 1 – THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND NATURE OF OPERATIONS
Ridgefield Acquisition Corp. (“we”, “us”, “our”, “Ridgefield” or the “Company”) was incorporated under the laws of the State of Colorado on October 13, 1983. Effective June 23, 2006, the Company was reincorporated under the laws of the State of Nevada through the merger of the Company with a wholly owned subsidiary of the Company. Since July 2000, the Company has suspended all operations, except for necessary administrative matters.
The Company has
GOING CONCERN AND LIQUIDITY
The Company has an accumulated deficit balance as of September 30, 2023 and net loss during the nine months ended September 30, 2023. These conditions, among others, raise substantial doubt about the Company’s ability to continue operations as a going concern. The Company’s financial statements are prepared using U.S. GAAP applicable to a going concern for the next twelve months from the date of this filing, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream and becomes profitable. The Company is continually analyzing its current costs and is attempting to make additional cost reductions where possible. We expect that we will continue to generate losses from operations throughout 2023.
In order to continue as a going concern and to develop a reliable source of revenues and achieve a profitable level of operations, the Company will need, among other things, additional capital resources. Management’s plans to continue as a going concern include raising additional capital through borrowing and/or sales of equity and debt securities. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.
BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for the presentation of interim financial information, but do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying financial statements should be read in conjunction with the December 31, 2022 consolidated financial statements that were filed in our annual report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month and nine-month periods ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023.
NOTE 2 – RELATED PARTY TRANSACTIONS
On March 23, 2022, the Company executed an unsecured Revolving Promissory Note (the “Shareholder Note”), in the principal amount of up to $
5
On September 27, 2022, the Company executed an unsecured Revolving Promissory Note (the “Qualstar Note”), payable to Qualstar Corporation (“Qualstar”). Mr. Bronson, the Company’s Chairman of the Board, President and Chief Executive Officer, is the President and CEO of Qualstar Corporation, as well as its largest shareholder. Under the terms of the Qualstar Note, Qualstar may (but is not required to) make loans to the Company from time to time upon request by the Company, up to a maximum principal amount of $
During the three and nine months ended September 30, 2022 and September 30, 2023, the following amounts were payable under all loans:
|
| Note Payable to | | Note Payable to | ||||||||
| | Steven N. Bronson | | Qualstar Corporation | ||||||||
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| Principal |
| Interest |
| Principal |
| Interest | ||||
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Balance December 31, 2021 | | $ | — |
| $ | — | | | | | | |
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Additions | | | | | | | | | | | | |
Cash Payments | | | (—) | | | (—) | | | | | | |
Balance March 31, 2022 | | $ | | | $ | | | | | | | |
| | | | | | | | | | | | |
Additions | | | | | | | | | | | | |
Cash Payments | | | (—) | | | (—) | | | | | | |
Balance June 30, 2022 | | $ | | | $ | | | | | | | |
| | | | | | | | | | | | |
Additions | | | — | | | | | $ | | | $ | |
Cash Payments | | | (—) | | | (—) | | | (—) | | | (—) |
Balance September 30, 2022 | | $ | | | $ | | | $ | | | $ | |
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Balance December 31, 2022 | | $ | | | $ | | | $ | | | $ | |
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Additions | | | — | | | | | | — | | | |
Cash Payments | | | (—) | | | (—) | | | (—) | | | (—) |
Balance March 31, 2023 | | $ | | | $ | | | $ | | | $ | |
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| | |
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Additions | | | — | | | | | | | | | |
Cash Payments | | | (—) | | | (—) | | | (—) | | | (—) |
Balance June 30, 2023 | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | |
Additions | | | — | | | | | | — | | | |
Cash Payments | | | (—) | | | (—) | | | (—) | | | (—) |
Balance September 30, 2023 | | $ | |
| $ | | | $ | | | $ | |
6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning our future financial and operating results; our business strategy of pursuing the acquisition of an operating entity; future financing initiatives; our intentions, expectations and beliefs regarding a merger, acquisition or other business combination with a viable operating entity; and our ability to comply with evolving legal standards and regulations, particularly concerning requirements for being a public company and United States export regulations.
These forward-looking statements speak only as of the date of this Form 10-Q and are subject to uncertainties, assumptions and business and economic risks. As such, our actual results could differ materially from those set forth in the forward-looking statements It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Form 10-Q may not occur, and actual results could differ materially and adversely from those anticipated or implied in our forward-looking statements.
Forward-looking statements should not be relied upon as predictions of future events. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Form 10-Q to conform these statements to actual results or to changes in our expectations, except as required by law.
The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.
Overview
Ridgefield Acquisition Corp. (“we”, “us”, “our”, “Ridgefield” or the “Company”) was originally incorporated as a Colorado corporation on October 13, 1983 under the name Ozo Diversified, Inc. On June 23, 2006, the Company filed Articles of Merger with the Secretary of State of the State of Nevada that effected the merger between the Company and a wholly owned subsidiary formed under the laws of the State of Nevada (“RAC-NV”), pursuant to the Articles of Merger, whereby RAC-NV was the surviving corporation. The merger changed the domicile of the Company from the State of Colorado to the State of Nevada. Furthermore, as a result of the Articles of Merger, the Company is authorized to issue 35,000,000 shares of capital stock consisting of 30,000,000 shares of common stock, $.001 par value per share, and 5,000,000 shares of preferred stock, $.01 par value per share.
Since July 2000, the Company has suspended all operations, except for necessary administrative matters relating to the timely filing of periodic reports as required by the Exchange Act. The Company is a “shell company” as defined in Rule 12b-2 of the Exchange Act. Accordingly, during the nine months ended September 30, 2023 and 2022, we earned no revenues.
Our principal executive office is located at 3827 S Carson St, Unit 505-25 PMB 1078, Carson City, NV 89701 and the telephone number is (805) 484-8855. Our website address is www.ridgefieldacquisition.com. None of the information on our website is part of this Form 10-Q.
7
Acquisition Strategy
Our plan of operation is to arrange for a merger, acquisition, business combination or other arrangement by and between the Company and a viable operating entity. In seeking to arrange a merger, acquisition, business combination or other arrangement, our objective will be to obtain long-term capital appreciation for the Company’s shareholders. While we have identified various operating entities, none have risen to the level of being a viable entity for a merger, acquisition, business combination or other arrangement. There can be no assurance that the Company will ever successfully arrange for a merger, acquisition, business combination or other arrangement by and between the Company and a viable operating entity.
The selection of a business opportunity is a complex process and involves a number of risks, because potentially available business opportunities may occur in many different industries and may be in various stages of development. Due in part to economic conditions in a number of geographic areas, rapid technological advances being made in some industries and shortages of available capital, we believe that there are numerous firms seeking either the limited additional capital which the Company will have or the benefits of a publicly traded corporation, or both. The perceived benefits of a publicly traded corporation may include facilitating or improving the terms upon which additional equity financing may be sought, providing liquidity for principal shareholders, creating a means for providing incentive stock options or similar benefits to key employees, and other factors.
In many cases, management of the Company will have the authority to effect acquisitions without submitting the proposal to the shareholders for their consideration. In some instances, however, the proposed participation in a business opportunity may be submitted to the shareholders for their consideration, either voluntarily by the Board of Directors to seek the shareholders’ advice and consent, or because of a requirement of state law to do so.
The Company may need additional funds in order to effectuate a merger, acquisition or other arrangement by and between the Company and a viable operating entity, although there is no assurance that we will be able to obtain such additional funds, if needed. Even if we are able to obtain additional funds, there is no assurance that the Company will be able to effectuate a merger, acquisition or other arrangement by and between the Company and a viable operating entity.
Critical Accounting Policies
The preparation of financial statements in conformity with generally accepted accounting principles of the United States (“U.S. GAAP”) requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. The SEC has defined a company’s critical accounting policies as the ones that are most important to the portrayal of the company’s financial condition and results of operations, and which require the company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. A description of our critical accounting policies and judgments used in the preparation of our financial statements was provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no material changes in these critical accounting policies since December 31, 2022.
Results of Operations
Revenues
During the nine months ended September 30, 2023 and the nine months ended September 30, 2022, the Company earned no revenues from operations. Overall, the Company incurred a net loss of $12,941 during the three months ended September 30, 2023 as compared to a net loss of $16,209 during the three months ended September 30, 2022. For the nine-month period ended September 30, 2023, the Company incurred a net loss of $45,254 as compared to a net loss of $41,555 during the nine months ended September 30, 2022
Because the Company’s operations are primarily administrative, the increase in net loss relates to an increase in general and administrative (G&A) expenses during the period and additional interest expense.
8
General and Administrative Expenses
G&A expenses consist of professional fees, service charges, office expenses and similar items.
During the three months ended September 30, 2023, the Company incurred G&A expenses of $9,861, a decrease of $4,958 compared to G&A expenses of $14,819 during the three months ended September 30, 2022. The decrease is largely attributable to the timing of professional fees related to compliance and expenses of maintaining our status as a public company.
During the nine months ended September 30, 2023, the Company incurred G&A expenses of $35,841, a decrease of $1,633 compared to G&A expenses of $37,474 during the nine months ended September 30, 2022. The decrease is largely attributable to a reduction in legal services provided, offset slightly by increased compliance costs related to filing SEC reports.
Other Expense
Other expense primarily represents state licenses, filing fees, minimum tax expense and net interest expense.
Other expense increased to $3,080 during the three months ended September 30, 2023, as compared to $1,390 during the three months ended September 30, 2022. Most of the increase relates to additional interest expense. The Company incurred net interest expense of $2,880 during the three months ended September 30, 2023 compared to only $850 during the three months ended September 30, 2022, primarily as a result of new borrowings.
For the nine months ended September 30, 2023, other expense was $9,413, as compared to $4,081 during the nine months ended September 30, 2022, an increase of $5,332. Most of the increase relates to additional interest expense. The Company incurred net interest expense of $7,213 during the nine months ended September 30, 2023 compared to $1,716 during the nine months ended September 30, 2022, primarily as a result of new borrowings. The remaining increase relates to state license fees.
Liquidity and Capital Resources
Cash and cash equivalents consist of cash and money market funds. We did not have any short-term or long-term investments as of September 30, 2023. Cash requirements for working capital and capital expenditures have been funded from cash balances on hand and loans from related parties.
As of September 30, 2023, we had cash and cash equivalents of $13,181 and working capital of $7,349, excluding the related party debt. With the related party debt, we had a working capital deficit of ($107,275).
On March 23, 2022, the Company executed an unsecured Revolving Promissory Note (the “Shareholder Note”), in the principal amount of up to $200,000 payable to Steven N. Bronson, the Company’s Chairman of the Board, President and Chief Executive Officer, pursuant to which Mr. Bronson may make loans to the Company from time to time. The Shareholder Note has a maturity date of March 23, 2027, and provides for interest to accrue on the unpaid principal at a rate of eight percent (8%) per annum (calculated on the basis of a 360-day year), compounded quarterly and payable quarterly on the last business day of the calendar quarter. The Shareholder Note may be prepaid by the Company at any time without penalty. The Company borrowed an initial amount of $20,000 under the Shareholder Note on March 23, 2022, and an additional $10,000 on June 2, 2022.
On September 27, 2022, the Company executed an unsecured Revolving Promissory Note (the “Qualstar Note”), payable to Qualstar Corporation (“Qualstar”). Mr. Bronson, the Company’s Chairman of the Board, President and Chief Executive Officer, is the President and CEO of Qualstar Corporation, as well as its largest shareholder. Under the terms of the Qualstar Note, Qualstar may (but is not required to) make loans to the Company from time to time upon request by the Company, up to a maximum principal amount of $200,000 outstanding at any time. The Qualstar Note may be prepaid by the Company at any time without penalty and is repayable on demand by Qualstar on or after December 31, 2024. The Qualstar Note provides for interest to accrue on the outstanding principal balance at a rate of ten percent (10%) per annum (calculated on the basis of a 360-day year), compounded and payable quarterly. The Company borrowed an initial amount of $20,000 under the Qualstar Note on September 27, 2022, and an additional $30,000 on December 1, 2022. The Company borrowed an additional $25,000 under the Qualstar Note on June 6, 2023.
9
While the cash received from the Shareholder Note and the Qualstar Note will satisfy the Company's immediate financial needs, it will not by itself have the capacity to provide the Company with sufficient capital to finance a merger, acquisition or business combination between the Company and a viable operating entity. The Company may need additional funds in order to complete a merger, acquisition or business combination between the Company and a viable operating entity. There can be no assurances that the Company will be able to obtain additional funds if and when needed.
During the three and nine months ended September 30, 2022 and September 30, 2023 the following amounts were payable under all loans:
| | Note Payable to | | Note Payable to | ||||||||
| | Steven N. Bronson | | Qualstar Corporation | ||||||||
| Principal |
| Interest |
| Principal |
| Interest | |||||
Balance December 31, 2021 | | $ | — | | $ | — | | | | | | |
| | | | | | | | | | | | |
Additions | | | 20,000 | | | 40 | | | | | | |
Cash Payments | | | (—) | | | (—) | | | | | | |
Balance March 31, 2022 | | $ | 20,000 | | $ | 40 | | | | | | |
| | | | | | | | | | | | |
Additions | | | 10,000 | | | 826 | | | | | | |
Cash Payments | | | (—) | | | (—) | | | | | | |
Balance June 30, 2022 | | $ | 30,000 | | $ | 866 | | | | | | |
| | | | | | | | | | | | |
Additions | | | — | | | 837 | | $ | 20,000 | | $ | 13 |
Cash Payments | | | (—) | | | (—) | | | (—) | | | (—) |
Balance September 30, 2022 | | $ | 30,000 | | $ | 1,703 | | $ | 20,000 | | $ | 13 |
| | | | | | | | | | | | |
Balance December 31, 2022 | | $ | 30,000 | | $ | 1,782 | | $ | 50,000 | | $ | 629 |
| | | | | | | | | | | | |
Additions | | | — | | | 669 | | | — | | | 1,174 |
Cash Payments | | | (—) | | | (—) | | | (—) | | | (—) |
Balance March 31, 2023 | | $ | 30,000 | | $ | 2,451 | | $ | 50,000 | | $ | 1,803 |
| | | | | | | | | | | | |
Additions | | | — | | | 727 | | | 25,000 | | | 1,763 |
Cash Payments | | | (—) | | | (—) | | | (—) | | | (—) |
Balance June 30, 2023 | | $ | 30,000 | | $ | 3,178 | | $ | 75,000 | | $ | 3,566 |
| | | | | | | | | | | | |
Additions | | | — | | | 799 | | | — | | | 2,081 |
Cash Payments | | | (—) | | | (—) | | | (—) | | | (—) |
Balance September 30, 2023 | | $ | 30,000 | | $ | 3,977 | | $ | 75,000 | | $ | 5,647 |
Economy and Inflation; COVID-19
Many leading economists predict high rates of inflation will continue through 2023 and potentially beyond. Inflation generally interferes with the provision of investment capital, and a prolonged period of high inflation may impact our ability to carry out our acquisition strategy. On the other hand, if business conditions deteriorate, it may be easier for us to identify an acquisition candidate.
The outbreak of the novel coronavirus (which causes the disease now known as COVID-19) was first identified in December 2019 in Wuhan, China, and together with its numerous variants has since spread rapidly across the world. The COVID-19 pandemic has caused, and is expected to continue to cause, directly and indirectly, a global slowdown in economic activity, a decrease in consumer and industrial demand for a broad variety of goods and services, disruptions in global supply chains, and significant volatility and disruption of financial markets. Further, the pandemic’s ultimate impact depends in part on many factors not within our control and which may vary by region (heightening the uncertainty as to the ultimate impact COVID-19 may have), including, without
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limitation: restrictive governmental and business actions that have been and continue to be taken in response (including lock-downs, travel restrictions, work from home requirements, and other workforce limitations); economic stimulus, funding and relief programs and other governmental economic responses; the effectiveness of governmental actions; economic uncertainty in key global markets and financial market volatility; levels of economic contraction or growth; the impact of the pandemic on health and safety; the pace of recovery if and when the pandemic subsides; and how significantly the number of cases increases as economies begin to open and restrictive governmental and business actions are relaxed.
Because the severity, magnitude and duration of the pandemic and its economic consequences are uncertain, vary by region, and are rapidly changing and difficult to predict, its full impact on our ability to successfully execute our acquisition objectives, including the extent to which new opportunities are presented to us, remains uncertain and difficult to predict.
The Russian invasion of Ukraine and the resulting economic sanctions imposed by the United States and other countries, along with certain international organizations, have significantly impacted the global economy, including by exacerbating inflationary pressures created by COVID-related supply chain disruptions, and given rise to potential global security issues that have adversely affected and may continue to adversely affect international business and economic conditions. The ongoing effects of the hostilities and sanctions are no longer limited to Russia and Russian companies and have spilled over to and negatively impacted other regional and global economic markets.
The conflict has resulted in rising energy prices and an even more constrained supply chain, and thus exacerbated the inflationary global economic environment, with cost increases affecting labor, fuel, materials, food and services. At this time, the ultimate extent and duration of the military action, resulting sanctions and future economic and market disruptions, and resulting effects on the Company, and our acquisition strategy, are impossible to predict.
In October 2023, the Palestinian militant group Hamas launched an unprecedented assault on Israel, who in turn formally declared war as its soldiers battled Hamas fighters and launched airstrikes on Gaza. This war between Israel and Hamas could spur inflation and hamper global growth if it turns into a wider conflict that causes a significant increase in oil prices.
Off-Balance Sheet and Contractual Arrangements
Our liquidity is not dependent on the use of off-balance-sheet financing arrangements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
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Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
The phrase “disclosure controls and procedures” refers to controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act, as amended, such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the U.S. Securities and Exchange Commission, or SEC. Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to our management, including our President and Chief Executive Officer (who serves as our Principal Executive Officer and Principal Financial Officer), as appropriate, to allow timely decision regarding required disclosure.
Our management, with the participation of our President and Chief Executive Officer (who serves as our Principal Executive Officer and Principal Financial Officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of September 30, 2023, the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our President and Chief Executive Officer has concluded that as of September 30, 2023, our disclosure controls and procedures were not designed to be effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our President and Chief Executive Officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Controls over Financial Reporting
There was no change in our internal control over financial reporting during the three or nine months ended September 30, 2023 that materially affected, or is reasonable likely to materially affect, our internal control over financial reporting.
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PART II | OTHER INFORMATION |
ITEM 6. | Exhibits |
The following exhibits are filed as part of this Quarterly Report on Form 10-Q.
Exhibit |
| Exhibit Description |
| | |
3.1 | | |
| | |
3.2 | | |
| | |
10.1 | | |
| | |
10.2 | | |
| | |
31* | | |
| | |
32*# | | |
| | |
101.INS* | | XBRL Instance Document. |
| | |
101.SCH* | | XBRL Taxonomy Schema. |
| | |
101.CAL* | | XBRL Taxonomy Extension Calculation Linkbase. |
| | |
101.DEF* | | XBRL Taxonomy Extension Definition Linkbase. |
| | |
101.LAB* | | XBRL Taxonomy Extension Label Linkbase. |
| | |
101.PRE* | | XBRL Taxonomy Extension Presentation Linkbase. |
| | |
104 | | Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit) |
* | Filed herewith |
# | The information in this exhibit is furnished and deemed not filed with the Securities and Exchange Commission for purposes of section 18 of the Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing. |
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SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: November 13, 2023
RIDGEFIELD ACQUISITION CORP., | ||
a Nevada corporation | ||
| ||
By: | /s/ Steven N. Bronson | |
Steven N. Bronson, President and Chief Executive Officer | ||
Principal Executive Officer, Principal | ||
Financial Officer and as the | ||
Registrant’s duly authorized officer | ||
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Exhibit 31
Certification of Principal Executive Officer and Principal Financial Officer
Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a),
As Adopted Pursuant To
Section 302 of Sarbanes-Oxley Act of 2002
I, Steven N. Bronson, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Ridgefield Acquisition Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 13, 2023 | /s/ Steven N. Bronson |
| Steven N. Bronson, President and Chief Executive Officer |
| (Principal Executive Officer and Principal Financial and Accounting Officer) |
| |
Exhibit 32
Certification of Principal Executive Officer and Principal Financial Officer
Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant To
Section 906 of the Sarbanes-Oxley Act of 2002
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), Steven N. Bronson, President and Chief Executive Officer (Principal Executive Officer and Principal Financial and Accounting Officer) of Ridgefield Acquisition Corp (the “Company”), hereby certifies that, to the best of his knowledge:
1. | Our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, to which this Certification is attached as Exhibit 32 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 13, 2023 | /s/ Steven N. Bronson |
| Steven N. Bronson, President and Chief Executive Officer |
| (Principal Executive Officer and Principal Financial and Accounting Officer) |