Renewable Energy Acquisition Corp. Deepens Losses Amidst Search for Deal

TL;DR

**REAC is a zombie SPAC with no revenue, increasing debt, and a 'going concern' warning – avoid at all costs.**

AI Summary

Renewable Energy Acquisition Corp. (REAC) reported a net loss of $9,346 for the nine months ended September 30, 2025, an increase from the $7,212 net loss for the same period in 2024. The company generated no revenue during either period. Operating expenses decreased to $1,181 for the nine months ended September 30, 2025, from $2,165 in the prior year, primarily due to a significant increase in 'Income-Standstill Payments' to $23,600 in 2025 from $0 in 2024, offsetting professional fees of $20,350 and other expenses of $4,431. Total liabilities increased to $212,282 as of September 30, 2025, from $202,368 at December 31, 2024, driven by increases in accounts payable and accrued expenses to $62,930 and accrued interest to stockholders to $32,875. The company's cash and cash equivalents decreased to $3,850 from $4,983 over the same period. REAC continues to operate as a blank check company, with its existence dependent on future sales of securities or advances from stockholders, and has not yet entered into a definitive business combination agreement.

Why It Matters

This filing reveals a blank check company, Renewable Energy Acquisition Corp., with no operating history and increasing losses, signaling significant risk for investors. Its reliance on standstill fees from Florida Intellectual Properties, LLC and potential future funding from existing stockholders, without formal commitments, highlights a precarious financial position. For employees, the lack of a definitive business combination means no operational roles or stability. Customers are non-existent as the company has no active business. The broader market should view this as a cautionary tale of SPACs that fail to execute their core mission, potentially impacting investor confidence in similar vehicles.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about our ability to continue as a going concern exists' in Note C, citing no operating history, limited cash of $3,850, and no operating assets. Its accumulated deficit reached $268,687 as of September 30, 2025, and it has no definitive business combination agreement, making its future highly uncertain.

Analyst Insight

Investors should avoid Renewable Energy Acquisition Corp. given its 'going concern' warning, lack of revenue, and increasing accumulated deficit of $268,687. The company's reliance on informal stockholder support and uncertain future equity sales presents an unacceptably high risk profile.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$7,250

total Debt

$212,282

net Income

-$9,346

eps

-$0.01

gross Margin

N/A

cash Position

$3,850

revenue Growth

N/A

Key Numbers

• $9,346 — Net Loss (Increased from $7,212 in prior year, indicating worsening financial performance.)
• $0 — Revenue (Company has no operating revenue for both periods, highlighting its blank check status.)
• $23,600 — Standstill Fees (Primary source of 'income' offsetting operating expenses, received from Florida Intellectual Properties, LLC.)
• $3,850 — Cash and Cash Equivalents (Low cash balance as of September 30, 2025, down from $4,983, indicating liquidity issues.)
• $268,687 — Accumulated Deficit (Growing deficit as of September 30, 2025, reflecting sustained losses.)
• $212,282 — Total Current Liabilities (Increased from $202,368, indicating growing financial obligations.)
• 700,000 — Common Shares Outstanding (Consistent number of shares, but with a net loss per share of $(0.01).)
• 6.0% — Interest Rate on Notes Payable (Rate on advances due upon demand, contributing to interest expense.)
• 15% — Interest Rate on Short-Term Advances (Weighted average interest rate on credit card lines of credit.)
• $116,694 — Total Due Stockholders (Aggregate balance of notes payable and accrued interest to stockholders as of September 30, 2025.)

Key Players & Entities

• Renewable Energy Acquisition Corp. (company) — registrant
• Florida Intellectual Properties, LLC (company) — payer of standstill fees
• SEC (regulator) — Securities and Exchange Commission
• $9,346 (dollar_amount) — net loss for nine months ended September 30, 2025
• $7,212 (dollar_amount) — net loss for nine months ended September 30, 2024
• $23,600 (dollar_amount) — standstill fees earned from FIP
• $3,850 (dollar_amount) — cash and cash equivalents as of September 30, 2025
• $268,687 (dollar_amount) — accumulated deficit as of September 30, 2025
• $212,282 (dollar_amount) — total current liabilities as of September 30, 2025
• Nevada (company) — state of incorporation

FAQ

Risk Factors

• Lack of Operating Revenue [high — financial]: REAC has generated no revenue in the nine months ended September 30, 2025, nor in the same period of 2024. This highlights the company's status as a blank check entity with no underlying business operations, making its existence dependent on future financing or acquisitions.
• Increasing Net Loss [medium — financial]: The net loss for the nine months ended September 30, 2025, increased to $9,346 from $7,212 in the prior year. This worsening performance, despite a reduction in operating expenses, indicates a growing financial strain on the company.
• Deteriorating Liquidity [medium — financial]: Cash and cash equivalents decreased to $3,850 as of September 30, 2025, from $4,983 at December 31, 2024. This low cash balance, coupled with increasing liabilities, suggests potential liquidity challenges.
• Growing Liabilities [medium — financial]: Total liabilities increased to $212,282 as of September 30, 2025, from $202,368 at December 31, 2024. This increase is driven by higher accounts payable, accrued expenses, and accrued interest to stockholders, indicating growing financial obligations.
• Dependence on Future Transactions [high — operational]: As a blank check company, REAC's continued existence is contingent upon successful future sales of securities or advances from stockholders, and it has not yet entered into a definitive business combination agreement. Failure to secure such transactions would jeopardize the company's operations.
• Reliance on Standstill Payments [medium — financial]: The company's 'income' primarily stems from 'Income-Standstill Payments' of $23,600 for the nine months ended September 30, 2025, offsetting operating expenses. This income is not from core operations and is dependent on agreements with entities like Florida Intellectual Properties, LLC.

Industry Context

Renewable Energy Acquisition Corp. operates within the renewable energy and environmental sectors as a blank check company. The industry is characterized by significant investment potential driven by global sustainability initiatives and technological advancements. However, as a SPAC, REAC faces intense competition from other acquisition-seeking entities and established players in the target industries, requiring a strong strategic vision and execution capability to identify and complete a successful business combination.

Regulatory Implications

As a publicly traded entity, REAC is subject to SEC regulations and reporting requirements. Its status as a blank check company may attract increased scrutiny regarding its business combination process and disclosures. Failure to comply with regulations or to complete a business combination within its mandated timeframe could lead to delisting or other penalties.

What Investors Should Do

1. Monitor progress on business combination efforts.
2. Assess the company's cash burn rate and funding needs.
3. Review the terms and feasibility of any proposed business combination.

Glossary

Blank Check Company

A company formed with the sole purpose of raising capital through an initial public offering (IPO) to acquire an existing company. It does not have a specific target identified at the time of its formation. (REAC operates as a blank check company, meaning its current financial state and future prospects are entirely dependent on identifying and completing a business combination.)

Standstill Payments

Payments made by a company to another party to agree to a 'standstill' period, during which the other party will not take certain actions, such as initiating litigation or attempting a hostile takeover. (REAC received $23,600 in standstill payments, which offset its operating expenses. This is a non-operational source of funds and indicates a specific agreement with an external entity.)

Accumulated Deficit

The cumulative net losses of a company since its inception, minus any accumulated profits. It represents a negative retained earnings balance. (REAC has an accumulated deficit of $268,687 as of September 30, 2025, reflecting its history of losses and lack of profitability.)

Additional Paid-in Capital

The amount of money a company receives from selling stock above its par value. (REAC has $63,586 in additional paid-in capital, representing funds raised from issuing common stock.)

Stockholders' Deficit

The total liabilities of a company exceed its total assets, resulting in a negative equity position for shareholders. (REAC has a total stockholders' deficit of ($205,031) as of September 30, 2025, indicating that its liabilities outweigh its assets.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Renewable Energy Acquisition Corp. reported a net loss of $9,346, an increase from $7,212 in the prior year, indicating a worsening financial performance. Revenue remained at $0 for both periods, consistent with its blank check status. Operating expenses decreased to $1,181 from $2,165, primarily due to a significant increase in 'Income-Standstill Payments' to $23,600, which offset higher professional and other expenses. Total liabilities grew to $212,282 from $202,368, driven by increases in accounts payable, accrued expenses, and accrued interest to stockholders. Cash and cash equivalents declined to $3,850 from $4,983, signaling a tightening liquidity position.

Key Financial Figures

• $0 — 0,000 shares of common stock, par value $0.0001, were outstanding. Renewable Ener
• $5,100 — ds. The Company recorded $ 5 , 1 00 and $5,100 in standstill fees from FIP during the
• $1 — 984 was primarily due to a decrease of $1, 2 50 in professional fee. The Company
• $2 — 2024, respectively. Other expenses of $2, 693 and $1,68 4 for the three-month pe
• $1,68 — ctively. Other expenses of $2, 693 and $1,68 4 for the three-month periods ended Sep

Filing Documents

• reac-20250930.htm (10-Q) — 1683KB
• reac032_ex31-1.htm (EX-31.1) — 39KB
• reac032_ex32-1.htm (EX-32.1) — 22KB
• 0001575872-25-000677.txt ( ) — 3759KB
• reac-20250930.xsd (EX-101.SCH) — 369KB
• reac-20250930_htm.xml (XML) — 347KB

- 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 15

- Controls and Procedures

Item 4 - Controls and Procedures 15

- Other Information

Part II - Other Information 15

- Legal Proceedings

Item 1 - Legal Proceedings 15

- Risk Factors

Item 1A - Risk Factors 15

- Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 15

- Defaults Upon Senior Securities

Item 3 - Defaults Upon Senior Securities 16

- Mine Safety Disclosures

Item 4 - Mine Safety Disclosures 16

- Other Information

Item 5 - Other Information 16

- Exhibits

Item 6 - Exhibits 16

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION ITEM1. FINANCIAL STATEMENTS Renewable Energy Acquisition Corp. FOR THE THREE and NINE -MONTH PERIODS ENDED SEPTEMBER 30, 2025 Index to Unaudited Financial Statements Contents Page Balance Sheets September 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 September 30, 2025 and December 31, 2024 (Unaudited) September 30 December 31 2025 2024 ASSETS Current Assets Cash and cash equivalents $ 3,850 $ 4,983 Other receivable, net of allowance 3,400 1,700 Total Current Assets $ 7,250 $ 6,683 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities Accounts payable and accrued expenses $ 62,930 $ 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 32,875 30,049 Accrued interest - other 5,008 4,304 Total Current Liabilities 212,282 202,368 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 ( 268,687 ) ( 259,341 ) Total Stockholders' Deficit ( 205,031 ) ( 195,685 ) Total Liabilities and Stockholders' Deficit $ 7,251 $ 6,683 The accompanying notes are an integral part of these financial statements. 2 Renewable Energy Acqu

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