x
|
QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
|
For
the quarterly period ended June
30, 2007
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the transition period from __________________ to
______________________.
|
Delaware
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
32-0163571
(I.R.S.
Employer
Identification
No.)
|
Yes
x
|
No
o
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer x
|
Yes
x
|
No
o
|
PART
I.
|
FINANCIAL
INFORMATION
|
Item
1.
|
Financial
Statements
|
3
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
13
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
15
|
Item
4.
|
Controls
and Procedures
|
15
|
PART
II.
|
OTHER
INFORMATION
|
Item
1.
|
Legal
Proceedings.
|
16
|
Item
1A.
|
Risk
Factors
|
16
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds.
|
16
|
Item
3.
|
Defaults
Upon Senior Securities.
|
16
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders.
|
16
|
Item
5.
|
Other
Information.
|
16
|
Item
6.
|
Exhibits.
|
16
|
PART
I.
FINANCIAL
INFORMATION
|
|||||||
Item
1. Financial
Statements
|
|||||||
GENERAL
FINANCE CORPORATION AND SUBSIDIARIES
|
|||||||
(A
Development Stage Company)
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
ASSETS
|
|||||||
June
30, 2007
(Unaudited)
|
December
31,
2006
|
||||||
Current
assets:
|
|||||||
Cash
|
$
|
59,427
|
$
|
37,713
|
|||
Cash
equivalents held in trust account - restricted
|
68,217,585
|
68,055,252
|
|||||
Prepaid
expenses
|
111,375
|
19,125
|
|||||
Total
current assets
|
68,388,387
|
68,112,090
|
|||||
Office
equipment, net
|
2,349
|
2,871
|
|||||
Deferred
income taxes
|
628,200
|
198,300
|
|||||
Other
assets
|
1,010,521
|
814,547
|
|||||
Total
assets
|
$
|
70,029,457
|
$
|
69,127,808
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
660,366
|
$
|
462,224
|
|||
Accrued
liabilities, including accrued interest of $91,253 in 2007 and $20,498
in
2006 on borrowings from related party
|
244,699
|
77,083
|
|||||
Income
taxes payable
|
39,773
|
597,500
|
|||||
Deferred
underwriting fees
|
1,380,000
|
1,380,000
|
|||||
Borrowings
from related party
|
2,350,000
|
1,280,000
|
|||||
Total
current liabilities
|
4,674,838
|
3,796,807
|
|||||
Common
stock subject to possible conversion, 1,724,138 shares at conversion
value
|
13,338,500
|
13,168,200
|
|||||
Commitments
|
--
|
--
|
|||||
Stockholders’
equity:
|
|||||||
Preferred
stock, $.0001 par value: 1,000,000 shares authorized; no shares
outstanding
|
--
|
--
|
|||||
Common
stock, $.0001 par value: 100,000,000 shares authorized; 10,500,000
shares
outstanding (including 1,724,138 shares subject to possible
conversion)
|
1,050
|
1,050
|
|||||
Additional
paid-in capital
|
51,777,233
|
51,708,433
|
|||||
Earnings
accumulated during the development stage
|
237,836
|
453,318
|
|||||
Total
stockholders’ equity
|
52,016,119
|
52,162,801
|
|||||
Total
liabilities and stockholders’ equity
|
$
|
70,029,457
|
$
|
69,127,808
|
GENERAL
FINANCE CORPORATION AND SUBSIDIARIES
|
(A
Development Stage Company)
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
Quarter
Ended
June
30, 2007
|
Quarter
Ended June 30, 2006
|
Six
Months Ended
June
30, 2007
|
Six
Months Ended
June
30, 2006
|
October
14, 2005 (inception) to
June
30, 2007
|
||||||||||||
General
and administrative expenses
|
$
|
651,850
|
$
|
55,631
|
$
|
1,557,384
|
$
|
63,699
|
$
|
2,732,370
|
||||||
Operating
loss
|
(651,850
|
)
|
(55,631
|
)
|
(1,557,384
|
)
|
(63,699
|
)
|
(2,732,370
|
)
|
||||||
Other:
|
||||||||||||||||
Interest
income
|
651,529
|
553,737
|
1,312,169
|
554,591
|
3,200,671
|
|||||||||||
Interest
expense
|
(43,968
|
)
|
--
|
(72,398
|
)
|
--
|
(92,896
|
)
|
||||||||
Other,
net
|
(7,209
|
)
|
--
|
(7,469
|
)
|
--
|
(7,469
|
)
|
||||||||
Income
(loss) before provision for income taxes
|
(51,498
|
)
|
498,106
|
(325,082
|
)
|
490,892
|
367,936
|
|||||||||
Provision
(benefit) for income taxes
|
(16,600
|
)
|
195,700
|
(109,600
|
)
|
196,500
|
130,100
|
|||||||||
Net
income (loss)
|
$
|
(34,898
|
)
|
$
|
302,406
|
$
|
(215,482
|
)
|
$
|
294,392
|
$
|
237,836
|
||||
Net
income (loss) per share:
|
||||||||||||||||
Basic
|
$
|
(0.00
|
)
|
$
|
0.03
|
$
|
(0.02
|
)
|
$
|
0.05
|
||||||
Diluted
|
$
|
(0.00
|
)
|
$
|
0.03
|
$
|
(0.02
|
)
|
$
|
0.05
|
||||||
Weighted
average shares outstanding
|
||||||||||||||||
Basic
|
10,500,000
|
9,609,890
|
10,500,000
|
5,763,812
|
||||||||||||
Diluted
|
10,500,000
|
11,040,514
|
10,500,000
|
6,483,076
|
GENERAL
FINANCE CORPORATION AND SUBSIDIARIES
|
(A
Development Stage Company)
|
CONSOLIDATED
STATEMENT OF STOCKHOLDERS’
EQUITY
|
Common
Stock
|
Additional
Paid-In
|
Earnings
Accumulated During the Development
|
Total
Stockholders’
|
|||||||||||||
Shares
|
Amount
|
Capital
|
Stage
|
Equity
|
||||||||||||
Balance
at October 14, 2005 (inception)
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||
Sale
of common stock to initial stockholder on October 14, 2005
|
1,875,000
|
188
|
249,812
|
-
|
250,000
|
|||||||||||
Sale
of warrants on April 10, 2006
|
-
|
-
|
700,000
|
-
|
700,000
|
|||||||||||
Sale
of 7,500,000 units and underwriters’ purchase option, net of underwriters’
discount and offering expenses on April 10, 2006
|
7,500,000
|
750
|
55,254,754
|
-
|
55,255,504
|
|||||||||||
Sale
of 1,125,000 units for over-allotment on April 13, 2006
|
1,125,000
|
112
|
8,319,667
|
-
|
8,319,779
|
|||||||||||
Proceeds
subject to possible conversion of 1,724,138 shares
|
-
|
-
|
(12,857,800
|
)
|
-
|
(12,857,800
|
)
|
|||||||||
Share-based
compensation
|
-
|
-
|
110,800
|
-
|
110,800
|
|||||||||||
Net
income
|
-
|
-
|
-
|
237,836
|
237,836
|
|||||||||||
Balance
at June 30, 2007
|
10,500,000
|
$
|
1,050
|
$
|
51,777,233
|
$
|
237,836
|
$
|
52,016,119
|
GENERAL
FINANCE CORPORATION AND SUBSIDIARIES
|
(A
Development Stage Company)
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
Six
Months Ended
June
30, 2007
|
Six
Months Ended
June
30, 2006
|
October
14, 2005 (inception) to June 30, 2007
|
||||||||
Cash
flows from operating activities
|
||||||||||
Net
income (loss)
|
$
|
(215,482
|
)
|
$
|
294,392
|
$
|
237,836
|
|||
Depreciation
and amortization
|
706
|
--
|
1,428
|
|||||||
Share-based
compensation expense
|
68,800
|
--
|
110,800
|
|||||||
Deferred
income taxes
|
(429,900
|
)
|
--
|
(628,200
|
)
|
|||||
Changes
in operating assets and liabilities:
|
||||||||||
Prepaid
expenses
|
(92,250
|
)
|
(57,375
|
)
|
(111,375
|
)
|
||||
Other
assets
|
(2,683
|
)
|
--
|
(6,371
|
)
|
|||||
Accounts
payable and accrued liabilities
|
365,758
|
--
|
905,065
|
|||||||
Income
taxes payable
|
(557,727
|
)
|
251,200
|
39,773
|
||||||
Interest
deferred for common stock subject to possible conversion, net of
income
tax effect
|
170,300
|
83,200
|
480,700
|
|||||||
Net
cash provided (used) by operating activities
|
(692,478
|
)
|
571,417
|
1,029,656
|
||||||
Cash
flows from investing activities:
|
||||||||||
Deposit
related to proposed acquisition
|
(193,475
|
)
|
--
|
(1,004,795
|
)
|
|||||
Purchases
of office equipment
|
--
|
--
|
(3,132
|
)
|
||||||
Cash
equivalents held in trust account
|
(162,333
|
)
|
(66,392,334
|
)
|
(68,217,585
|
)
|
||||
Net
cash used by investing activities
|
(355,808
|
)
|
(66,392,334
|
)
|
(69,225,512
|
)
|
||||
Cash
flows from financing activities:
|
||||||||||
Borrowings
from revolving line of credit with related party
|
1,070,000
|
--
|
2,350,000
|
|||||||
Proceeds
from sale of units, net
|
--
|
65,155,776
|
64,955,283
|
|||||||
Proceeds
from private placement
|
--
|
700,000
|
700,000
|
|||||||
Proceeds
from sale of common stock to initial stockholder
|
--
|
--
|
250,000
|
|||||||
Payment
of accrued offering costs
|
--
|
(133,065
|
)
|
--
|
||||||
Net
cash provided by financing activities
|
1,070,000
|
65,722,711
|
68,255,283
|
|||||||
Net
increase (decrease) in cash
|
21,714
|
(98,206
|
)
|
59,427
|
||||||
Cash
at beginning of period
|
37,713
|
175,375
|
-
|
|||||||
Cash
at end of period
|
$
|
59,427
|
$
|
77,169
|
$
|
59,427
|
||||
Non-cash
financing activity:
|
||||||||||
Accrued
deferred underwriting fees
|
$
|
1,380,000
|
$
|
1,380,000
|
$
|
1,380,000
|
Nominee
|
For
|
Withheld
|
David
M. Connell
|
8,776,419
|
323,945
|
Manuel
Marrero
|
8,776,419
|
323,945
|
For
|
5,598,970
|
Against
|
707,933
|
Abstain
|
241,125
|
Not
Voted
|
2,552,336
|
For
|
8,831,021
|
Against
|
265,643
|
Abstain
|
3,700
|
COMPANY NAME CORPORATION | ||
|
|
|
Date: August
13, 2007
|
By
|
/s/ Ronald F. Valenta |
Ronald
F. Valenta
|
||
Chief Executive Officer | ||
By:
|
/s/ Charles E. Barrantes | |
Charles E. Barrantes |
||
Chief Financial Officer |
Exhibit
Number
|
Exhibit
Description
|
|
3.1
|
Amended
and Restated Bylaws of General Finance Corporation, a Delaware
Corporation, as of April 27, 2007
|
|
31.1
|
Certification
of Chief Executive Officer Pursuant to SEC Rule 13a-14(a)/15d-14(a)
|
|
31.2
|
Certification
of Chief Financial Officer Pursuant to SEC Rule
13a-14(a)/15d-14(a)
|
|
32.1
|
Certification
of Chief Executive Officer Pursuant to 18 U.S.C. §1350
|
|
32.2
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C.
§1350
|