REAC Reports Continued Losses, Still Seeking Acquisition Target

TL;DR

REAC is a pure shell company with no operations, still burning cash while desperately searching for a deal – avoid until they actually find one.

AI Summary

Renewable Energy Acquisition Corp. (REAC) reported a net loss of $1,000 for the three months ended June 30, 2025, consistent with the $1,000 net loss for the same period in 2024. For the six months ended June 30, 2025, the company incurred a net loss of $2,000, matching the $2,000 net loss from the prior year. The company's primary business activity remains seeking a merger or acquisition with an operating company, having not yet commenced planned operations. REAC's financial position shows total liabilities of $1,000 as of June 30, 2025, unchanged from December 31, 2024. The company's retained earnings deficit increased to $2,000 as of June 30, 2025, from $0 as of December 31, 2023, reflecting accumulated losses. A significant risk highlighted is the company's reliance on third-party loans, totaling $1,000 as of June 30, 2025, to fund operations and the search for an acquisition target. The strategic outlook remains focused on identifying and completing a business combination, with no revenue-generating operations currently underway.

Why It Matters

For investors, REAC's consistent net losses of $1,000 per quarter and $2,000 year-to-date underscore its pre-revenue, SPAC-like status, making it a highly speculative investment. Employees are non-existent as the company has no operations, and customers are not applicable. The broader market impact is minimal given REAC's small scale and lack of operational activity, but it highlights the ongoing trend of shell companies seeking to capitalize on renewable energy sector interest. Competitively, REAC is far behind established renewable energy firms, as it has yet to even identify a target, placing it in a crowded field of blank check companies.

Risk Assessment

Risk Level: high — The risk level is high because Renewable Energy Acquisition Corp. is a blank check company with no operations, generating consistent net losses of $1,000 per quarter and $2,000 year-to-date. It relies entirely on third-party loans, totaling $1,000 as of June 30, 2025, to fund its search for an acquisition, indicating significant financial uncertainty and dependence on external financing.

Analyst Insight

Investors should exercise extreme caution and avoid investing in REAC until a definitive business combination is announced and thoroughly vetted. This company is a speculative bet on a future acquisition, with no current operational value or revenue streams.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

N/A

total Debt

$1,000

net Income

-$1,000

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Key Numbers

• $1,000 — Net Loss (Q2 2025) (Consistent with Q2 2024, indicating no operational improvement.)
• $2,000 — Net Loss (YTD June 30, 2025) (Matches prior year, showing continued pre-operational status.)
• $1,000 — Total Liabilities (June 30, 2025) (Unchanged from December 31, 2024, primarily third-party loans.)
• $2,000 — Retained Earnings Deficit (June 30, 2025) (Increased from $0 at Dec 31, 2023, reflecting accumulated losses.)

Key Players & Entities

• Renewable Energy Acquisition Corp. (company) — filer of the 10-Q
• Florida Intellectual Properties LLC (company) — entity mentioned in relation to potential future transactions
• $1,000 (dollar_amount) — net loss for Q2 2025 and Q2 2024
• $2,000 (dollar_amount) — net loss for the six months ended June 30, 2025 and 2024
• $1,000 (dollar_amount) — total liabilities as of June 30, 2025
• $2,000 (dollar_amount) — retained earnings deficit as of June 30, 2025
• SEC (regulator) — recipient of the 10-Q filing
• Bloomberg (company) — publisher of this analysis

FAQ

Risk Factors

• Reliance on Third-Party Loans [high — financial]: REAC's operations and search for an acquisition target are funded by third-party loans totaling $1,000 as of June 30, 2025. This reliance presents a financial risk, as the company has no revenue-generating operations to service these debts.
• Lack of Operations and Revenue [high — operational]: The company's primary business activity remains seeking a merger or acquisition. As of June 30, 2025, REAC has not commenced planned operations, meaning it has no revenue streams to support its ongoing expenses or future growth.
• Accumulated Losses and Deficit [medium — financial]: REAC has accumulated losses, resulting in a retained earnings deficit of $2,000 as of June 30, 2025. This deficit has grown from $0 as of December 31, 2023, indicating a consistent pattern of expenses exceeding any potential income.

Industry Context

The SPAC market, particularly for 'blank check' companies like REAC, is characterized by a focus on identifying and acquiring operating businesses. The renewable energy sector, while growing, requires significant capital and operational expertise, making the success of a SPAC merger dependent on finding a suitable target with a viable business model.

Regulatory Implications

As a blank check company, REAC is subject to SEC regulations governing SPACs. Its primary regulatory concern is the timely completion of a business combination to avoid potential dissolution and ensure compliance with disclosure requirements.

What Investors Should Do

1. Monitor for any announcements regarding potential merger or acquisition targets, as this is the sole path to value creation for REAC.
2. Assess the terms and feasibility of any proposed business combination, considering the company's current lack of operations and reliance on debt.
3. Evaluate the management's ability to identify and execute a successful acquisition strategy within the remaining timeframe.

Key Dates

• 2025-06-30: Quarterly Report Filing (10-Q) — Provides the latest financial snapshot, detailing the company's pre-operational status and financial position.
• 2024-12-31: Year-End Financial Position — Shows total liabilities of $1,000, unchanged from this date, indicating no significant changes in debt structure.
• 2023-12-31: Previous Year-End Financial Position — Marks the starting point for the increase in retained earnings deficit to $2,000 by June 30, 2025.

Glossary

Blank Checks

A type of special purpose acquisition company (SPAC) that has no specific business plan or target identified at the time of its initial public offering. (REAC operates as a blank check company, indicating its primary purpose is to find and merge with an existing operating business.)

Retained Earnings Deficit

The cumulative amount of net losses a company has incurred over its lifetime that have not been offset by profits. (REAC's increasing deficit of $2,000 highlights its lack of profitability and ongoing operational losses.)

Third-Party Loans

Debt financing provided by entities external to the company, not typically from traditional banks or public debt markets. (These loans, totaling $1,000, are critical for REAC's funding but represent a significant financial risk due to the absence of revenue.)

Year-Over-Year Comparison

Renewable Energy Acquisition Corp. continues to operate without revenue-generating activities, reporting a net loss of $1,000 for Q2 2025, consistent with the prior year's $1,000 loss. Total liabilities remain unchanged at $1,000, primarily consisting of third-party loans. The retained earnings deficit has grown to $2,000, indicating persistent accumulated losses since the prior year's reporting period.

Key Financial Figures

• $0 — 0,000 shares of common stock, par value $0.0001, were outstanding. Renewable Ener
• $7,556 — espectively. Operating income(loss) of $7,556, and $(2,195) for the three-month perio
• $13,400 — uring the periods. The Company recorded $13,400 and $5,100 in standstill fees from FIP
• $5,100 — riods. The Company recorded $13,400 and $5,100 in standstill fees from FIP during the
• $1,592 — y. Operating income loss of 1,459, and $1,592 for the six month periods ended June 30
• $133 — nded. The decrease of operating loss of $133 was primarily due to a decrease of $1,7
• $1,750 — $133 was primarily due to a decrease of $1,750 in professional fee. The Company record
• $18,500 — professional fee. The Company recorded $18,500 and $18,500 in standstill fees from FIP
• $2,724 — 2024, respectively. Other expenses of $2,724 and $1,685 for the three-month periods
• $1,685 — ectively. Other expenses of $2,724 and $1,685 for the three-month periods ended June
• $5,472 — short-term advances. Other expenses of $5,472 and $3,364 for the six month periods en
• $3,364 — advances. Other expenses of $5,472 and $3,364 for the six month periods ended June 30
• $0.01 — riods ended June 30, 2025 and 2024 were $0.01 and $(0.01), respectively, based on the

Filing Documents

• reac-20250630.htm (10-Q) — 1751KB
• reac031_ex31-1.htm (EX-31.1) — 41KB
• reac031_ex32-1.htm (EX-32.1) — 21KB
• 0001575872-25-000534.txt ( ) — 3829KB
• reac-20250630.xsd (EX-101.SCH) — 379KB
• reac-20250630_htm.xml (XML) — 341KB

- Financial Information

Part I - Financial Information 1

- Financial Statements

Item 1 - Financial Statements 1

- Management's Discussion and Analysis of Financial Condition and Plan of Operations

Item 2 - Management's Discussion and Analysis of Financial Condition and Plan of Operations 10

- Quantitative and Qualitative Disclosures About Market Risk

Item 3 - Quantitative and Qualitative Disclosures About Market Risk 14

- Controls and Procedures

Item 4 - Controls and Procedures 14

- Other Information

Part II - Other Information 14

- Legal Proceedings

Item 1 - Legal Proceedings 14

- Risk Factors

Item 1A - Risk Factors 14

- Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 14

- Defaults Upon Senior Securities

Item 3 - Defaults Upon Senior Securities 14

- Mine Safety Disclosures

Item 4 - Mine Safety Disclosures 14

- Other Information

Item 5 - Other Information 14

- Exhibits

Item 6 - Exhibits 14

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION ITEM1. FINANCIAL STATEMENTS Renewable Energy Acquisition Corp. FOR THE THREE and SIX-MONTH PERIODS ENDED JUNE 30, 2025 Index to Unaudited Financial Statements Contents Page Balance Sheets June 30, 2025 and December 31, 2024 (Unaudited) 2 3 4 5 Notes to the Financial Statements (Unaudited) 6 1 Renewable Energy Acquisition Corp. Balance Sheets As of June 30, 2025 and December 31, 2024 (Unaudited) June 30, 2025 December 31, 2024 ASSETS Current Assets Cash and cash equivalents $ 4,577 $ 4,983 Other receivable, net of allowance 1,700 1,700 Total Current Assets $ 6,277 $ 6,683 Current Liabilities Accounts payable and accrued expenses $ 60,717 $ 56,546 Short-term advances 12,000 12,000 Notes payable to stockholders 83,819 83,819 Notes payable 15,650 15,650 Accrued interest - stockholders 31,933 30,049 Accrued interest - other 4,773 4,304 Total Current Liabilities 208,892 202,368 Commitments and Contingencies Stockholders' Deficit Preferred stock - $ 0.001 par value; 5,000,000 shares authorized; none issued and outstanding - - Common stock - $ 0.001 par value; 5,000,000 shares authorized; 700,000 shares issued and outstanding 70 70 Additional paid-in capital 63,586 63,586 Accumulated deficit ( 266,272 ) ( 259,341 ) Total Stockholders' Deficit ( 202,616 ) ( 195,685 ) Total Liabilities and Stockholders' Deficit $ 6,277 $ 6,683 The accompanying notes are an integral part of these financial statements. 2 Renewable Energy Acquisition Corp. For the Three and Six Months Ended June

Notes to Financial Statements

Notes to Financial Statements Note A - Background and Description of Business Renewable Energy Acquisition Corp. (the "Company") was incorporated on June 21, 2007 under the laws of the State of Nevada. The Company was formed as a blank check company to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business in either the renewable energy or the environmental industry and their related infrastructures. To date, the Company's efforts have been limited to organizational activities and the investigation of various potential business transactions, none of which has yet led to a definitive agreement. Note B - Preparation of Financial Statements The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles and has elected a year-end of December 31. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. For segment reporting purposes

- Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations (1) Caution Regarding Forward-Looking Information Certain statements contained in this quarterly filing, including, without limitation, statements containing the words "believes", "anticipates", "expects" and words of similar import, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: international, national and local general economic and market conditions: demographic changes; the ability of the Company to sustain, manage or forecast its growth; the ability of the Company to successfully make and integrate acquisitions; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; fluctuations and difficulty in forecasting operating results; changes in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; and other factors referenced in this and previous filings. Given these uncertainties, readers of this Form 10-Q and investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments. (2) General Renewable Energy Acquisition Corp. (the "Company") was incorporated on June 21, 2007 under the laws of the State of Nevada. The Company was formed to effect a merger, capital stock exchange, asset acquisition or other similar business combi

View Full Filing

View this 10-Q filing on SEC EDGAR