10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2014

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number: 0-53800

SMSA Crane Acquisition Corp.

(Exact name of registrant as specified in its charter)

Nevada	27-0984742
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1172 South Dixie Highway, Suite 335,

Coral Gables, FL 33146

(Address of principal executive offices, Zip Code)

(703) 740-1751

(Registrant's telephone number, including area code)

_________________________________________________________

(Former Name, Former Address and Former Fiscal Year if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	þ
(Do not check if smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes þ No ¨

The number of shares outstanding of each of the issuer's classes of common equity, as of August 1, 2014 is as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.001 par value	11,423,648

SMSA CRANE ACQUISITION CORP.

UNAUDITED FINANCIAL STATEMENTS

JUNE 30, 2014 AND 2013

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	1
	Balance Sheets as of June 30, 2014 (unaudited) and December 31, 2013	1
	Statements of Operations for the three months and six months ended June 30, 2014 and 2013 (unaudited)	2
	Statements of Cash Flows for the six months ended June 30, 2014 and 2013 (unaudited)	3
	Notes to Financial Statements (unaudited)	4
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4.	Controls and Procedures	12
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	13
Item 1A.	Risk Factors	13
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	13
Item 3.	Defaults Upon Senior Securities	13
Item 4.	Mine Safety Disclosures	13
Item 5.	Other Information	13
Item 6.	Exhibits	13

SIGNATURES 14

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

SMSA Crane Acquisition Corp.

Balance Sheets

	June 30,			December 31,
	2014			2013
	(unaudited)
ASSETS
Current Assets
Cash on hand	$	238		$	238
Due from principal stockholder		4,021,100			—
Total Current Assets	$	4,021,338		$	238
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued expenses	$	40,557		$	22,910
Due to principal stockholder		—			3,825
Total Liabilities		40,557			26,735
Stockholders' Equity (Deficit)
Preferred stock - $0.001 par value.
10,000,000 shares authorized.
No shares issued and outstanding		—			—
Common stock - $0.001 par value.
100,000,000 shares authorized.
11,423,648 shares and 10,000,005 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively		11,424			10,000
Additional paid-in capital		4,159,081			58,835
Accumulated Deficit		(189,724	)		(95,332	)
Total Stockholders' Equity (Deficit)		3,980,781			(26,497	)
Total Liabilities and Stockholders' Equity (Deficit)	$	4,021,338		$	238

The accompanying notes are an integral part of these unaudited financial statements

1

SMSA Crane Acquisition Corp.

Unaudited Statements of Operations

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Revenues	$	—		$	—		$	—		$	—
Operating expenses
Professional fees		47,840			1,200			87,047			4,025
Other general and administrative costs		1,680			659			7,345			1,869
Total operating expenses		49,520			1,859			94,392			5,894
Loss from operations		(49,520	)		(1,859	)		(94,392	)		(5,894	)
Provision for income taxes		—			—			—			—
Net Loss	$	(49,520	)	$	(1,859	)	$	(94,392	)	$	(5,894	)
Loss per weighted-average share of common stock outstanding, computed on net loss – basic and fully diluted	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
Weighted-average number of shares of common stock outstanding - basic and fully diluted		11,303,543			10,000,005			10,914,307			10,000,005

The accompanying notes are an integral part of these unaudited financial statements

2

SMSA Crane Acquisition Corp.

Unaudited Statements of Cash Flows

	Six Months Ended
	June 30,
	2014			2013
Cash Flows from Operating Activities:
Net loss for the period	$	(94,392	)	$	(5,894	)
Adjustments to reconcile net loss to net cash used in operating activities
Changes in operating working capital items:
Increase in Accounts payable		17,647			1,849
Net Cash Used in Operating Activities		(76,745	)		(4,045	)
Cash Flows from Investing Activities:		—			—
Cash Flows from Financing Activities:
Proceeds from issuance of common stock, net of offering cost		4,101,295			—
Loan to Stockholder		(4,109,295	)		—
Advance from Stockholder		84,370
Capital contributed to support operations		375			3,400
Net Cash Provided by Financing Activities		76,745			3,400
Increase in Cash		—			(645	)
Cash at beginning of period		238			874
Cash at end of period	$	238		$	229
Supplemental Disclosure of Interest and Income Taxes Paid:
Interest paid during the period		—			—
Income taxes paid during the period		—			—

The accompanying notes are an integral part of these unaudited financial statements

3

SMSA CRANE ACQUISITION CORP.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

JUNE 30, 2014

Note A – Basis of Presentation, Background and Description of Business

Basis of presentation

The accompanying unaudited condensed financial statements of SMSA Crane Acquisition Corp. have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited financial statements for the year ended December 31, 2013, included in our Annual Report on Form 10-K for the year ended December 31, 2013.

In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three month period have been made. Results for the interim period presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms "Company", "we", "us" or "our" mean SMSA Crane Acquisition Corp.

Background

SMSA Crane Acquisition Corp. (the "Company") was organized on September 9, 2009 as a Nevada corporation to effect the reincorporation of Senior Management Services of Crane, Inc., a Texas corporation, mandated by the plan of reorganization discussed below.

The Company's emergence from Chapter 11 of Title 11 of the United States Code on August 1, 2007 created the combination of a change in majority ownership and voting control - that is, loss of control by the then-existing stockholders, a court-approved reorganization, and a reliable measure of the entity's fair value - resulting in a fresh start, creating, in substance, a new reporting entity. Accordingly, the Company, post-bankruptcy, has no significant assets, liabilities or operating activities. Therefore, the Company, as a new reporting entity, qualified as a "development stage enterprise" as defined in Development Stage Entities topic of the FASB Accounting Standards Codification (see note C below) and as a shell company as defined in Rule 405 under the Securities Act of 1933, and Rule 12b-2 under the Securities Exchange Act of 1934.

On November 5, 2010, the Company entered into a Share Purchase Agreement with Carolyn C. Shelton, a resident of Tyler, Texas, pursuant to which on November 10, 2010 she acquired 9,500,000 shares of our common stock for approximately $9,500 cash or $0.001 per share.

On August 29, 2013, Coquí Radio Pharmaceuticals, Corp. ("Coquí") closed a transaction through which Coquí purchased 9,500,000 outstanding shares of common stock and agreed to purchase an additional 400,000 outstanding shares of common stock of the Company from existing shareholders in a private transaction in exchange for $280,000. The additional 400,000 shares were subsequently acquired on October 24, 2013.

Description of Business

The Company's business plan is to consummate the reverse acquisition transaction with Coquí which intends to establish a dedicated Medical Isotope Production Facility in the United States to provide a reliable domestic source of certain radioisotopes for use in nuclear medicine. In order to accomplish this, substantial additional capital must be raised. Moreover, there are a number of material contingencies including approval by the Nuclear Regulatory Commission ("NRC"). To date, no application has been filed by Coquí due to insufficient working capital. There is no assurance that the Company will be able to successfully implement this business plan or that the execution of the same will result in the appreciation of our stockholders' investment in the Company's common stock. The Company intends to consummate such merger as soon as Coquí finishes auditing its financial statements required to permit it to comply with applicable Securities and Exchange Commission rules.

4

SMSA CRANE ACQUISITION CORP.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

JUNE 30, 2014

Note B – Reorganization Under Chapter 11 of the U. S. Bankruptcy Code

The Company's Plan of Reorganization (the “Plan”) was confirmed by the Bankruptcy Court on August 1, 2007 and became effective on August 10, 2007. On November 5, 2010, the Company entered into a transaction with Carolyn C. Shelton as discussed in Note A and a Certificate of Compliance with certain bankruptcy confirmation provisions was issued by the Bankruptcy Court on November 10, 2010.

Note C – Early Adoption of Recent Accounting Standard

In June 2014 Accounting Standards Update 2014-10 removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company has elected to adopt this ASU effective with this quarterly report on Form 10-Q and its adoption resulted in the removal of previously required development stage.

Note D – Liquidity

The Company has no post-bankruptcy operating history; however, the Company has raised approximately $4.1 million, net of offering costs, in equity capital from January 2014 through the date of the filing of these financial statements, in contemplation of a reverse acquisition transaction with an operating company, Coquí, as discussed in Note A and Note J. On February 14, 2014, the Company closed on the sale of 927,000 shares of common stock, the minimum amount offered, in its private placement offering to accredited investors in exchange for gross proceeds of $3,068,370. The net proceeds to the Company from the offering was $2,941,939. On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock in its private placement offering to accredited investors in exchange for gross proceeds of $1,218,080. The net proceeds to the Company from the offering, including all offering costs, was $1,158,357.

The Company is not conducting operations pending completion of the reverse merger with Coquí. It is dependent upon Coquí to provide loans to pay its legal and accounting fees. The Company is continuing its private placement offering since Coquí needs substantial additional capital. Coquí faces considerable risk in its business plan and a potential shortfall of funding due the potential inability to raise additional capital in the equity securities market that it needs to implement its business plan. If adequate operating capital and/or cash flows are not received during the next twelve months, the Company and/or Coquí could become dormant until such time as necessary funds could be raised or provided as set forth in the Plan. There is no assurance that the Company and/or Coquí will be able to obtain additional funding through the sales of additional equity securities or, that such funding, if available, will be obtained on terms favorable to or affordable by the Company.

The Company's Articles of Incorporation authorize the issuance of up to 10,000,000 shares of preferred stock and 100,000,000 shares of common stock. The Company's ability to issue preferred stock may limit the Company's ability to obtain debt or equity financing as well as impede potential takeover of the Company, which may be in the best interest of stockholders. The Company's ability to issue these authorized but unissued securities may also negatively impact our ability to raise additional capital through the sale of our debt or equity securities.

Note E – Summary of Significant Accounting Policies and Recent Accounting Pronouncements

Use of Estimates

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.

5

SMSA CRANE ACQUISITION CORP.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

JUNE 30, 2014

Cash and cash equivalents

The Company considers all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Income taxes

The Company files income tax returns in the United States of America and various states, as appropriate and applicable. As a result of the Company's bankruptcy action, the Company is no longer subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for any period prior to January 1, 2010. The Company does not anticipate any examinations of returns filed for periods ending on or after December 31, 2009.

The Company uses the asset and liability method of accounting for income taxes. At June 30, 2014 and December 31, 2013, respectively, the deferred tax asset and deferred tax liability accounts, as recorded when material to the financial statements, are entirely the result of temporary differences. Temporary differences generally represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily accumulated depreciation and amortization, allowance for doubtful accounts and vacation accruals.

The Company has adopted the provisions required by the Income Taxes topic of the FASB Accounting Standards Codification. The Codification Topic requires the recognition of potential liabilities as a result of management's acceptance of potentially uncertain positions for income tax treatment on a "more-likely-than-not" probability of an assessment upon examination by a respective taxing authority. As a result of the implementation of Codification's Income Tax Topic, the Company did not incur any liability for unrecognized tax benefits.

Income (Loss) per share

Basic earnings (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the respective period presented in our accompanying unaudited financial statements.

Fully diluted earnings (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company's net income (loss) position at the calculation date.

As of June 30, 2014 and December 31, 2013 and subsequent thereto, the Company had no outstanding stock warrants, options or convertible securities which could be considered as dilutive for purposes of the loss per share calculation. At June 30, 2014 there were 129,500 outstanding warrants to purchase shares of common stock of the Company which could dilute future earnings per share.

Recent Accounting Pronouncements

In April 2014, we adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Update No (ASU 2014-08), "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". ASU 2014-08 on Discontinued Operations changes the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new guidance, a discontinued operation is defined as: (i) a disposal of a component or group of components that is disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity's operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of acquisition. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment, or (iv) other major parts of an entity. Under the current US GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement component after the disposal. The new guidance eliminates these criteria.

6

SMSA CRANE ACQUISITION CORP.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

JUNE 30, 2014

Except the Accounting Standards Update 2014-10 indicated above, the Company does not expect the adoption of any other recent accounting pronouncements to have a material impact on its financial statements.

Note F – Fair Value of Financial Instruments

The carrying amount of cash, accounts payable and accrued expenses and due to stockholder, approximates fair value due to the short term nature of these items and/or the current interest rates payable in relation to current market conditions.

Interest rate risk is the risk that the Company's earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates. The Company does not use derivative instruments to moderate its exposure to interest rate risk, if any.

Financial risk is the risk that the Company's earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates. The Company does not use derivative instruments to moderate its exposure to financial risk, if any.

Note G – Related Party Transactions

Halter Financial Group, Inc., pursuant to the Plan, managed the $1,000 in cash transferred from the bankruptcy creditor's trust on our behalf until exhausted and contributed additional monies through September 16, 2013 (the date of sale of shares of common stock to Coquí; see Note A) to support our operations. This contributed capital totaled $375 and $5,600 for the six months ended June 30, 2014 and the year ended December 31, 2013, respectively. These amounts have been reflected as a component of additional paid-in capital in the accompanying unaudited balance sheets.

During the six months ended June 30, 2014 and the year ended December 31, 2013, Coquí contributed a total of $84,370 and $3,825 to support the Company's operations. This amount has been netted with loan to principal stockholder in the accompanying balance sheet at June 30, 2014 (see Note H).

The Company has advanced the net proceeds of its private placement to Coquí, which advances have not been documented by any loan agreements or notes. Additionally, the Company's former Chief Executive Officer was a principal of the Placement Agent which is raising the capital in the private placement and has received compensation directly from the private placement fees paid to the placement agent. See Note J.

Note H – Loan to Principal Stockholder

As of June 30, 2014 and December 31, 2013, the Company owes $88,195 and $3,825, respectively, to Coquí, the controlling stockholder of the Company, for the funding of its current operating expenses. The amount owing is unsecured, non-interest bearing, and due on demand.

The Company has advanced $4,109,295 of the net proceeds from the sales of its common stock in its private placement to Coquí, which was recorded on the accompanying balance sheet as a loan to principal stockholder. As of June 30, 2014, the total net loan to Coqui was $4,021,100.

Note I – Concentration of Credit Risk

The Company loaned its cash from proceeds from the sale of its common stock from its private placement offering to its controlling stockholder. At times cash deposited with financial institutions may exceed federally insured limits. The Company has not experienced any losses in such accounts through June 30, 2014. At June 30, 2014, the Company cash balances were not insured.

Note J – Capital Stock Transactions

The Company in 2014 is conducting a private placement offering on a best efforts partial all-or-none basis, minimum offering of $3 million, maximum offering of $49,032,225.

7

SMSA CRANE ACQUISITION CORP.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

JUNE 30, 2014

On February 14, 2014, the Company closed on the sale of 927,000 shares of common stock at $3.31 per share, the minimum amount offered, in its private placement offering to accredited investors in exchange for gross proceeds of $3,068,370. Pariter Securities, LLC ("Pariter") was paid $125,431 for acting as a placement agent for the offering, which was charged against the proceeds and recorded as a reduction of additional paid-in capital and was issued 92,700 five-year warrants exercisable at $3.31 per share. The valuation of the warrants issued to Pariter was approximately $84,000 using the Black Scholes valuation model. The assumptions used in the Black Scholes valuation model to value these warrants were: stock price and exercise price $3.31; risk free interest rate 1.5%; volatility factor, derived by using comparable public companies in the same industry, was 28% and the expected term of the warrant to be 5 years.

Additionally, Pariter waived cash commissions of $304,001 by electing to purchase 91,843 shares of the Company's common stock at the offering price of $3.31 per share (without commissions or expenses) and other fees of $1,000 were also paid and expensed. The net proceeds to the Company were $2,941,939.

On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock at $3.31 per share in its private placement offering to accredited investors in exchange for gross proceeds of $1,218,080. Pariter was granted 36,800 common shares at $3.31 per share or the equivalent of $121,808 and was paid $48,723 for acting as a placement agent for the offering, which was charged against the proceeds and recorded as a reduction of additional paid-in capital and was issued 36,800 five-year warrants exercisable at $3.31 per share. The valuation of the warrants issued to Pariter was approximately $34,000 using the Black Scholes valuation model. The assumptions used in the Black Scholes valuation model to value these warrants were: stock price and exercise price $3.31; risk free interest rate 1.73%; volatility factor, derived by using comparable public companies in the same industry, was 28% and the expected term of the warrant to be 5 years. Other fees of $2,000 and additional legal fees of $9,001 were also paid. The net proceeds to the Company were $1,158,357. All funds received by the Company have been loaned to Coquí.

From May 19, 2014 to June 11, 2014 the Company received approximately $566,000 from investors offering to purchase approximately 171,000 shares of its common stock in its private placement offering. This amount is being held in the Company's legal counsel's escrow account at June 30, 2014 until the subscriptions are accepted and there is a closing of this tranche.

The Company's principal shareholder is Coquí. Coquí is a radio pharmaceutical company that seeks to establish a medical isotope production facility (the "Facility") to produce Molybdenum-99 ("Mo-99"). Mo-99 is used to manufacture one of the principal medical isotopes used for diagnostic applications in nuclear medicine.

The net proceeds of the Company's private placement offering will be used, primarily through advances to Coquí, for preparing an environmental report on the site where the Facility is to be located, paying Nuclear Regulatory Commission ("NRC") counsel, hiring contractors to begin preliminary work on the Facility prior to receiving any NRC licensing, and for general working capital purposes.

Following completion of the required audit of Coquí, the intent is for Coquí to merge with the Company.

Note K – Subsequent Events

The Company has implemented the most recent FASB accounting pronouncement for reporting subsequent events. This standard establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued. The adoption of this accounting pronouncement did not impact our financial position or results of operations. The Company evaluated all events or transactions that occurred after June 30, 2014, up through the date these financial statements were issued and no subsequent events occurred that required disclosure in the accompanying consolidated financial statements.

8

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is intended to help the reader understand SMSA Crane Acquisition Corp, our operations and our present business environment. MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and the accompanying notes thereto contained in "Item 1. Financial Statements and Supplementary Data" of this report. This overview summarizes the MD&A, which includes the following sections:

· Overview of Our Business — a general overview of our future business,  

· Critical Accounting Policies and Estimates — a discussion of accounting policies that require critical judgments and estimates;  

· Operations Review — an analysis of our Company's results of operations for the two periods ended June 30, 2014 and 2013 presented in our financial statements. Except to the extent that differences among our operating segments are material to an understanding of our business as a whole, we present the discussion in the MD&A and;  

· Liquidity, Capital Resources and Financial Position — an analysis of our cash flows; an overview of our financial position.

As discussed in more detail at the beginning of this Quarterly Report, the following discussion contains forward-looking statements that involve risks, uncertainties, and assumptions such as statements of our plans, objectives, expectations, and intentions. Our actual results may differ materially from those discussed in these forward-looking statements because of the risks and uncertainties inherent in future events.

Overview of Our Future Business

The Company's business plan is to consummate the reverse merger transaction with Coquí Radio Pharmaceuticals, Corp. ("Coquí") which intends to establish a dedicated Medical Isotope Production Facility in the United States to provide a reliable domestic source of certain radioisotopes for use in nuclear medicine.

In 2013, Coquí acquired control of the Company by purchasing 9,900,000 shares of common stock in a private transaction. In connection with the proposed reverse merger, Coquí will cancel these shares and its shareholders will receive 10,792,801 shares of common stock as merger consideration.

On February 14, 2014, the Company closed on the sale of 927,000 shares of its common stock, the minimum amount offered in its private placement offering to accredited investors in exchange for gross proceeds of $3,068,370. The net proceeds to the Company from the offering were $2,941,939. An additional 368,000 shares of common stock were sold on April 28, 2014 in the Company's private placement to accredited investors in exchange for gross proceeds of approximately $1.2 million at $3.31 per share. The net proceeds to the Company were approximately $1.1 million.

The Company's ultimate continued existence is dependent upon its ability to generate sufficient cash flows from operations to support its daily operations as well as provide sufficient resources to retire existing liabilities and obligations on a timely basis. The Company faces considerable risk in its business plan and a potential shortfall of funding due the potential inability to raise capital in the equity securities market. If adequate operating capital and/or cash flows are not received during the next twelve months, the Company could become dormant until such time as necessary funds could be raised.

The Company anticipates future sales or issuances of equity securities to fulfill its business plan. However, there is no assurance that the Company will be able to obtain additional funding through the sales of additional equity securities or, that such funding, if available, will be obtained on terms favorable to or affordable by the Company.

9

Critical Accounting Policies and Estimates

The SEC issued Financial Reporting Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, the SEC has defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results, and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, we have identified the following significant policies as critical to the understanding of our financial statements.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make a variety of estimates and assumptions that affect (i) the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and (ii) the reported amounts of revenues and expenses during the reporting periods covered by the financial statements.

Our management expects to make judgments and estimates about the effect of matters that are inherently uncertain. As the number of variables and assumptions affecting the future resolution of the uncertainties increase, these judgments become even more subjective and complex. Although we believe that our estimates and assumptions are reasonable, actual results may differ significantly from these estimates. Changes in estimates and assumptions based upon actual results may have a material impact on our results of operation and/or financial condition.

Our significant accounting policies are summarized in Note E of our financial statements. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the periods presented in this report.

Contingencies

Management assesses the probability of loss for certain contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate. Management discloses any liability which, taken as a whole, may have a material adverse effect on the financial condition of the Company.

Results of Operations

For the three month periods ended June 30, 2014 and 2013

Revenue

The Company had no revenue for the three month periods ended June 30, 2014 or 2013, respectively. It is anticipated that the Company will not generate revenue until Coquí executes its business plan.

Operating Expenses

The following table presents our total operating expenses for the three months presented (to the nearest thousand):

	Three Months Ended June 30,
	2014		2013
Operating expenses	$	50,000	$	1,900

Operating expenses consist mostly of professional services. Professional services are comprised of outside legal, audit, accounting, transfer agent and Edgar filer services and other services. These expenses were directly related to the maintenance of the corporate entity and the preparation and filing of reports with the Securities and Exchange Commission. The increase in operating expenses in 2014 was primarily due to the increase in professional fees.

It is anticipated that future operating expenses will increase as the Company complies with its periodic reporting requirements and effects its reverse acquisition and business plan with Coquí.

10

For the six month periods ended June 30, 2014 and 2013

Revenue

The Company had no revenue for the six month periods ended June 30, 2014 or 2013 respectively. It is anticipated that the Company will not generate revenue until Coquí executes its business plan.

Operating Expenses

The following table presents our total operating expenses for the six months presented (to the nearest thousand):

	Six Months Ended June 30,
	2014		2013
Operating expenses	$	94,000	$	6,000

Operating expenses consist mostly of professional services. Professional services are comprised of outside legal, audit, accounting, transfer agent and Edgar filer services and other services. These expenses were directly related to the maintenance of the corporate entity and the preparation and filing of reports with the Securities and Exchange Commission. The increase in operating expenses in 2014 was primarily due to the increase in professional fees.

See Note D of the Note J to our Financial Statements included in this Quarterly Report on Form 10-Q for information regarding our private placement.

It is anticipated that future operating expenses will increase as the Company complies with its periodic reporting requirements and effects its reverse acquisition and business plan with Coquí.

Liquidity and Capital Resources

The following table provides detailed information about our net cash flow for all financial statements periods presented in this Report.

Cash Flow

	Six Months Ended June 30,
	2014			2013
Net cash used in operating activities	$	(76,745	)	$	(4,045	)
Net cash provided by investing activities		—			—
Net cash provided by financing activities		76,745			3,400
Net cash inflow	$	—		$	(645	)

Operating Activities

Cash used in operating activities for the six months ended June 30, 2014, consisted of net loss as well as the effect of changes in working capital. Cash used in operating activities for the six months ended June 30, 2014, consisted of an approximate net loss of $94,000. Total cash provided by working capital totaled approximately $18,000. The cash provided by working capital was due to an increase in accounts payable and accrued expenses. The increase in cash used in our operating activities was due to the increase in professional fees for the six months ended June 30, 2014.

Investing Activities

Net cash provided by our investing activities for the six months ended June 30, 2014 and 2013 was $0.

Financing Activities

Net cash provided by our financing activities for the six months ended June 30, 2014, as compared to 2013 increased by approximately $73,000. This increase was due to the first and second closing of our private placement sale of our common stock that took place on February 14, 2014 and April 28, 2014 with total net proceeds of approximately $4,101,000 and an increase in advance from stockholder of approximately $84,000. This increase in cash provided by financing activities was offset by our loans to Coqui of approximately $4,110,000.

11

See Note D and Note J of the Notes to our Financial Statements included in this Quarterly Report on Form 10-Q for information regarding our private placement sales of our common stock.

Pending our completion of the reverse merger, we are not conducting any business activities. Our only operating activities are to comply with Securities and Exchange Commission reporting requirements and complete the reverse merger. We have no liquidity having loaned all of our cash to Coquí. If we raise any additional funds prior to completion of the reverse merger, they will be used for the benefit of Coquí.

FORWARD-LOOKING STATEMENTS

In addition to historical information, this report contains forward-looking statements. We use words such as "believe", "expect", "anticipate", "project", "target", "plan", "optimistic", "intend", "aim", "will" or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, any statements describing our proposed merger with Coquí, our ability to raise the necessary capital, including our ability to obtain funding through the sale of additional equity securities, and Coquí's ability to get all regulatory approvals including that of the NRC. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, as well as assumptions that if they were to ever materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements. Such risks include unforeseen audit issues, the ability of Pariter or others to raise the necessary capital and regulatory issues which may arise if Coquí files an application with the NRC.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Required.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision and with the participation of our Chief Executive and Financial Officer ("Certifying Officer"), has evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15 promulgated under the Exchange Act as of the end of the period covered by this Annual Report. Disclosure controls and procedures are controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms and include controls and procedures designed to ensure that information we are required to disclose in such reports is accumulated and communicated to management, including our Certifying Officer, as appropriate, to allow timely decisions regarding required disclosure. Based upon that evaluation, our Certifying Officer concluded that as of such date, our disclosure controls and procedures were not effective to ensure that the information required to be disclosed by us in our reports is recorded, processed, summarized and reported within the time periods specified by the SEC. However, our Certifying Officer believes that the financial statements included in this Report fairly present, in all material respects, our financial condition and results of operations for the respective periods presented.

Changes in Internal Controls Over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation performed that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

12

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1A. RISK FACTORS.

Not required for a smaller reporting company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES OR USE OF PROCEEDS.

On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock at $3.31 per share in its private placement offering to accredited investors in exchange for gross proceeds of $1,218,080. The net proceeds to the Company were $1,158,357. The purchasers were accredited investors who acquired the shares for investment. The sales were exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) thereunder.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

There were no defaults upon senior securities during the fiscal quarter ended June 30, 2014.

ITEM 4. MINE SAFETY DISCLOSURES.

Not Applicable.

ITEM 5. OTHER INFORMATION.

Not Applicable.

ITEM 6. EXHIBITS.

The following exhibits are filed with this report, except those indicated as having previously been filed with the SEC and are incorporated by reference to another report, registration statement or form. As to any shareholder of record requesting a copy of this report, we will furnish any exhibit indicated in the list below as filed with this report upon payment to us of our expenses in furnishing the information.

Exhibit Number	Description
31	Rule 13a-14(a)/15d-14(a) Certification - Principal Executive Officer and Principal Financial Accounting Officer
32	Section 1350 Certifications
101.INS *	XBRL Instance Document
101.SCH *	XBRL Taxonomy Extension Schema Document
101.CAL *	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF *	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB *	XBRL Taxonomy Extension Label Linkbase Document
101.PRE *	XBRL Taxonomy Extension Presentation Linkbase Document

———————

*

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

13

SIGNATURES

In accordance with section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant caused this Report on Form 10-Q to be signed on its behalf by the undersigned, thereto duly authorized individuals.

	SMSA Crane Acquisition Corp.
Date: August 12, 2014	By:	/s/ Carmen I. Bigles
	Name:	Carmen I. Bigles
	Title:	President, Chief Executive Officer, Principal Financial Officer and Principal Accounting Officer

14

EXHIBIT INDEX

Exhibit Number	Description
31	Rule 13a-14(a)/15d-14(a) Certification - Principal Executive Officer and Principal Financial Accounting Officer
32	Section 1350 Certifications
101.INS *	XBRL Instance Document
101.SCH *	XBRL Taxonomy Extension Schema Document
101.CAL *	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF *	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB *	XBRL Taxonomy Extension Label Linkbase Document
101.PRE *	XBRL Taxonomy Extension Presentation Linkbase Document

———————

*

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

EX-31

EXHIBIT 31

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Carmen I. Bigles, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of SMSA Crane 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: August 12, 2014

/s/ Carmen I. Bigles

Carmen I. Bigles

Principal Executive Officer,
Principal Financial Officer and
Principal Accounting Officer

EX-32

EXHIBIT 32

SECTION 1350 CERTIFICATIONS

STATEMENT FURNISHED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned is the Chief Executive Officer and Treasurer or Principal Accounting Officer of SMSA Crane Acquisition Corp. This Certification is made pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. This Certification accompanies the Quarterly Report on Form 10-Q of SMSA Crane Acquisition Corp. for the three months ended June 30, 2014.

The undersigned certifies that such 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of SMSA Crane Acquisition Corp. as of June 30, 2014.

This Certification is executed as of August 12, 2014

By:	/s/ Carmen I. Bigles
Name:	Carmen I. Bigles
Title:	Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

A signed original of this written statement required by Section 906 has been provided to SMSA Crane Acquisition Corp. and will be retained by SMSA Crane Acquisition Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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Liquidity

6 Months Ended

Jun. 30, 2014

Liquidity [Abstract]

Liquidity

Note D - Liquidity

The Company has no post-bankruptcy operating history; however, the Company has raised approximately $4.1 million, net of offering costs, in equity capital from January 2014 through the date of the filing of these financial statements, in contemplation of a reverse acquisition transaction with an operating company, Coquí, as discussed in Note A and Note J. On February 14, 2014, the Company closed on the sale of 927,000 shares of common stock, the minimum amount offered, in its private placement offering to accredited investors in exchange for gross proceeds of $3,068,370. The net proceeds to the Company from the offering was $2,941,939. On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock in its private placement offering to accredited investors in exchange for gross proceeds of $1,218,080. The net proceeds to the Company from the offering, including all offering costs, was $1,158,357.

The Company is not conducting operations pending completion of the reverse merger with Coquí. It is dependent upon Coquí to provide loans to pay its legal and accounting fees. The Company is continuing its private placement offering since Coquí needs substantial additional capital. Coquí faces considerable risk in its business plan and a potential shortfall of funding due the potential inability to raise additional capital in the equity securities market that it needs to implement its business plan. If adequate operating capital and/or cash flows are not received during the next twelve months, the Company and/or Coquí could become dormant until such time as necessary funds could be raised or provided as set forth in the Plan. There is no assurance that the Company and/or Coquí will be able to obtain additional funding through the sales of additional equity securities or, that such funding, if available, will be obtained on terms favorable to or affordable by the Company.

The Company's Articles of Incorporation authorize the issuance of up to 10,000,000 shares of preferred stock and 100,000,000 shares of common stock. The Company's ability to issue preferred stock may limit the Company's ability to obtain debt or equity financing as well as impede potential takeover of the Company, which may be in the best interest of stockholders. The Company's ability to issue these authorized but unissued securities may also negatively impact our ability to raise additional capital through the sale of our debt or equity securities.

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Early Adoption of Recent Accounting Standard

6 Months Ended

Jun. 30, 2014

Early Adoption of Recent Accounting Standard [Abstract]

Early Adoption of Recent Accounting Standard

Note C - Early Adoption of Recent Accounting Standard

In June 2014 Accounting Standards Update 2014-10 removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company has elected to adopt this ASU effective with this quarterly report on Form 10-Q and its adoption resulted in the removal of previously required development stage.

XML

Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets
Cash on hand	$ 238	$ 238
Due from principal stockholder	4,021,100
Total Current Assets	4,021,338	238
Current Liabilities
Accounts payable and accrued expenses	40,557	22,910
Due to principal stockholder		3,825
Total Liabilities	40,557	26,735
Stockholders' Equity (Deficit)
Preferred stock - $0.001 par value 10,000,000 shares authorized. No shares issued and outstanding
Common stock - $0.001 par value. 100,000,000 shares authorized. 11,423,648 shares and 10,000,005 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	11,424	10,000
Additional paid-in capital	4,159,081	58,835
Accumulated Deficit	(189,724)	(95,332)
Total Stockholders' Equity (Deficit)	3,980,781	(26,497)
Total Liabilities and Stockholders' Equity (Deficit)	$ 4,021,338	$ 238

XML

Basis of Presentation, Background and Description of Business

6 Months Ended

Jun. 30, 2014

Basis of Presentation, Background and Description of Business [Abstract]

Basis of Presentation, Background and Description of Business

Note A - Basis of Presentation, Background and Description of Business

Basis of presentation

The accompanying unaudited condensed financial statements of SMSA Crane Acquisition Corp. have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or the SEC, including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited financial statements for the year ended December 31, 2013, included in our Annual Report on Form 10-K for the year ended December 31, 2013.

In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three month period have been made. Results for the interim period presented are not necessarily indicative of the results that might be expected for the entire fiscal year. When used in these notes, the terms "Company", "we", "us" or "our" mean SMSA Crane Acquisition Corp.

Background

SMSA Crane Acquisition Corp. (the "Company") was organized on September 9, 2009 as a Nevada corporation to effect the reincorporation of Senior Management Services of Crane, Inc., a Texas corporation, mandated by the plan of reorganization discussed below.

The Company's emergence from Chapter 11 of Title 11 of the United States Code on August 1, 2007 created the combination of a change in majority ownership and voting control - that is, loss of control by the then-existing stockholders, a court-approved reorganization, and a reliable measure of the entity's fair value - resulting in a fresh start, creating, in substance, a new reporting entity. Accordingly, the Company, post-bankruptcy, has no significant assets, liabilities or operating activities. Therefore, the Company, as a new reporting entity, qualified as a "development stage enterprise" as defined in Development Stage Entities topic of the FASB Accounting Standards Codification (see note C below) and as a shell company as defined in Rule 405 under the Securities Act of 1933, and Rule 12b-2 under the Securities Exchange Act of 1934.

On November 5, 2010, the Company entered into a Share Purchase Agreement with Carolyn C. Shelton, a resident of Tyler, Texas, pursuant to which on November 10, 2010 she acquired 9,500,000 shares of our common stock for approximately $9,500 cash or $0.001 per share.

On August 29, 2013, Coquí Radio Pharmaceuticals, Corp. ("Coquí") closed a transaction through which Coquí purchased 9,500,000 outstanding shares of common stock and agreed to purchase an additional 400,000 outstanding shares of common stock of the Company from existing shareholders in a private transaction in exchange for $280,000. The additional 400,000 shares were subsequently acquired on October 24, 2013.

Description of Business

The Company's business plan is to consummate the reverse acquisition transaction with Coquí which intends to establish a dedicated Medical Isotope Production Facility in the United States to provide a reliable domestic source of certain radioisotopes for use in nuclear medicine. In order to accomplish this, substantial additional capital must be raised. Moreover, there are a number of material contingencies including approval by the Nuclear Regulatory Commission ("NRC"). To date, no application has been filed by Coquí due to insufficient working capital. There is no assurance that the Company will be able to successfully implement this business plan or that the execution of the same will result in the appreciation of our stockholders' investment in the Company's common stock. The Company intends to consummate such merger as soon as Coquí finishes auditing its financial statements required to permit it to comply with applicable Securities and Exchange Commission rules.

XML

Loan to Principal Stockholder (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Related Party Transaction [Line Items]
Due to principal stockholder			$ 3,825
Loan to principal stockholder	4,109,295
Due from principal stockholder	4,021,100
Coqui [Member]
Related Party Transaction [Line Items]
Due to principal stockholder	88,195		3,825
Loan to principal stockholder	4,109,295
Due from principal stockholder	$ 4,021,100

XML

Reorganization Under Chapter 11 of the U. S. Bankruptcy Code

6 Months Ended

Jun. 30, 2014

Reorganization Under Chapter 11 of the U. S. Bankruptcy Code [Abstract]

Reorganization Under Chapter 11 of the U. S. Bankruptcy Code

Note B - Reorganization Under Chapter 11 of the U. S. Bankruptcy Code

The Company's Plan of Reorganization (the "Plan") was confirmed by the Bankruptcy Court on August 1, 2007 and became effective on August 10, 2007. On November 5, 2010, the Company entered into a transaction with Carolyn C. Shelton as discussed in Note A and a Certificate of Compliance with certain bankruptcy confirmation provisions was issued by the Bankruptcy Court on November 10, 2010.

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Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Balance Sheets [Abstract]
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	11,423,648	10,000,005
Common stock, shares outstanding	11,423,648	10,000,005

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Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policy)

6 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies and Recent Accounting Pronouncements [Abstract]

Use of Estimates

Use of Estimates

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.

Cash and cash equivalents

Cash and cash equivalents

The Company considers all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Income taxes

Income taxes

The Company files income tax returns in the United States of America and various states, as appropriate and applicable. As a result of the Company's bankruptcy action, the Company is no longer subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for any period prior to January 1, 2010. The Company does not anticipate any examinations of returns filed for periods ending on or after December 31, 2009.

The Company uses the asset and liability method of accounting for income taxes. At June 30, 2014 and December 31, 2013, respectively, the deferred tax asset and deferred tax liability accounts, as recorded when material to the financial statements, are entirely the result of temporary differences. Temporary differences generally represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily accumulated depreciation and amortization, allowance for doubtful accounts and vacation accruals.

The Company has adopted the provisions required by the Income Taxes topic of the FASB Accounting Standards Codification. The Codification Topic requires the recognition of potential liabilities as a result of management's acceptance of potentially uncertain positions for income tax treatment on a "more-likely-than-not" probability of an assessment upon examination by a respective taxing authority. As a result of the implementation of Codification's Income Tax Topic, the Company did not incur any liability for unrecognized tax benefits.

Income (Loss) per share

Income (Loss) per share

Basic earnings (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the respective period presented in our accompanying unaudited financial statements.

Fully diluted earnings (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company's net income (loss) position at the calculation date.

As of June 30, 2014 and December 31, 2013 and subsequent thereto, the Company had no outstanding stock warrants, options or convertible securities which could be considered as dilutive for purposes of the loss per share calculation. At June 30, 2014 there were 129,500 outstanding warrants to purchase shares of common stock of the Company which could dilute future earnings per share.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In April 2014, we adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Update No (ASU 2014-08), "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". ASU 2014-08 on Discontinued Operations changes the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new guidance, a discontinued operation is defined as: (i) a disposal of a component or group of components that is disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity's operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of acquisition. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment, or (iv) other major parts of an entity. Under the current US GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement component after the disposal. The new guidance eliminates these criteria.

Except the Accounting Standards Update 2014-10 indicated above, the Company does not expect the adoption of any other recent accounting pronouncements to have a material impact on its financial statements.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 01, 2014
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Entity Registrant Name	SMSA CRANE ACQUISITION CORP.
Entity Central Index Key	0001473287
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,423,648

XML

Basis of Presentation, Background and Description of Business (Details) (USD $)	6 Months Ended		1 Months Ended			3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Nov. 30, 2010 Carolyn C. Shelton [Member]	Oct. 31, 2013 Coqui [Member]	Aug. 31, 2013 Coqui [Member]	Oct. 31, 2013 Coqui [Member]
Related Party Transaction [Line Items]
Shares of common stock issued for cash			9,500,000	400,000	9,500,000
Proceeds from issuance of common stock, net of offering cost	$ 4,101,295		$ 9,500			$ 280,000
Common stock issued for cash, price per share			$ 0.001

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Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statements of Operations [Abstract]
Revenues
Operating expenses
Professional fees	47,840	1,200	87,047	4,025
Other general and administrative costs	1,680	659	7,345	1,869
Total operating expenses	49,520	1,859	94,392	5,894
Loss from operations	(49,520)	(1,859)	(94,392)	(5,894)
Provision for income taxes
Net Loss	$ (49,520)	$ (1,859)	$ (94,392)	$ (5,894)
Loss per weighted-average share of common stock outstanding, computed on net loss - basic and fully diluted	$ 0.00	$ 0.00	$ (0.01)	$ 0.00
Weighted-average number of shares of common stock outstanding - basic and fully diluted	11,303,543	10,000,005	10,914,307	10,000,005

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Related Party Transactions

6 Months Ended

Jun. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Note G - Related Party Transactions

Halter Financial Group, Inc., pursuant to the Plan, managed the $1,000 in cash transferred from the bankruptcy creditor's trust on our behalf until exhausted and contributed additional monies through September 16, 2013 (the date of sale of shares of common stock to Coquí; see Note A) to support our operations. This contributed capital totaled $375 and $5,600 for the six months ended June 30, 2014 and the year ended December 31, 2013, respectively. These amounts have been reflected as a component of additional paid-in capital in the accompanying unaudited balance sheets.

During the six months ended June 30, 2014 and the year ended December 31, 2013, Coquí contributed a total of $84,370 and $3,825 to support the Company's operations. This amount has been netted with loan to principal stockholder in the accompanying balance sheet at June 30, 2014 (see Note H).

The Company has advanced the net proceeds of its private placement to Coquí, which advances have not been documented by any loan agreements or notes. Additionally, the Company's former Chief Executive Officer was a principal of the Placement Agent which is raising the capital in the private placement and has received compensation directly from the private placement fees paid to the placement agent. See Note J.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2014

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note F - Fair Value of Financial Instruments

The carrying amount of cash, accounts payable and accrued expenses and due to stockholder, approximates fair value due to the short term nature of these items and/or the current interest rates payable in relation to current market conditions.

Interest rate risk is the risk that the Company's earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates. The Company does not use derivative instruments to moderate its exposure to interest rate risk, if any.

Financial risk is the risk that the Company's earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates. The Company does not use derivative instruments to moderate its exposure to financial risk, if any.

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Capital Stock Transactions (Details) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended				6 Months Ended		1 Months Ended		2 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Apr. 30, 2014 Placement agent, Pariter [Member]	Feb. 28, 2014 Placement agent, Pariter [Member]	Apr. 30, 2014 Placement agent, Pariter [Member] Warrant [Member]	Feb. 28, 2014 Placement agent, Pariter [Member] Warrant [Member]	Jun. 30, 2014 Minimum [Member]	Jun. 30, 2014 Maximum [Member]	Apr. 30, 2014 Accredited investors [Member]	Feb. 28, 2014 Accredited investors [Member]	Jun. 30, 2014 Accredited investors [Member]
Stockholders Equity [Line Items]
Private placement offering on a best efforts partial all-or-none basis, offering									$ 3,000,000	$ 49,032,225
Common stock issued for cash, price per share					$ 3.31	$ 3.31					$ 3.31	$ 3.31
Shares of common stock issued for cash						91,843					368,000	927,000	171,000
Issuance of shares for cash						304,001					1,218,080	3,068,370	566,000
Proceeds from issuance of common stock, net of offering cost			4,101,295								1,158,357	2,941,939
Professional fees	47,840	1,200	87,047	4,025	48,723	125,431
Other fees paid and expensed											2,000	1,000
Legal fees paid											9,001
Common shares granted for services, shares					36,800
Common shares granted for services					121,808
Warrants issued							36,800	92,700
Expiration period							5 years	5 years
Warrant exercise price							$ 3.31	$ 3.31
Value of warrants issued							$ 34,000	$ 84,000
Model used to estimate fair value							Black Scholes	Black Scholes
Option exercise price							$ 3.31	$ 3.31
Risk free interest rate							1.73%	1.50%
Expected volatility rate							28.00%	28.00%
Option life							5 years	5 years

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Liquidity (Details) (USD $)	6 Months Ended			1 Months Ended		2 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Apr. 30, 2014 Accredited investors [Member]	Feb. 28, 2014 Accredited investors [Member]	Jun. 30, 2014 Accredited investors [Member]
Related Party Transaction [Line Items]
Proceeds from issuance of common stock, net of offering cost	$ 4,101,295			$ 1,158,357	$ 2,941,939
Shares of common stock issued for cash				368,000	927,000	171,000
Issuance of shares for cash				$ 1,218,080	$ 3,068,370	$ 566,000
Preferred stock, shares authorized	10,000,000		10,000,000
Common stock, shares authorized	100,000,000		100,000,000

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Capital Stock Transactions

6 Months Ended

Jun. 30, 2014

Capital Stock Transactions [Abstract]

Capital Stock Transactions

Note J - Capital Stock Transactions

The Company in 2014 is conducting a private placement offering on a best efforts partial all-or-none basis, minimum offering of $3 million, maximum offering of $49,032,225.

On February 14, 2014, the Company closed on the sale of 927,000 shares of common stock at $3.31 per share, the minimum amount offered, in its private placement offering to accredited investors in exchange for gross proceeds of $3,068,370. Pariter Securities, LLC ("Pariter") was paid $125,431 for acting as a placement agent for the offering, which was charged against the proceeds and recorded as a reduction of additional paid-in capital and was issued 92,700 five-year warrants exercisable at $3.31 per share. The valuation of the warrants issued to Pariter was approximately $84,000 using the Black Scholes valuation model. The assumptions used in the Black Scholes valuation model to value these warrants were: stock price and exercise price $3.31; risk free interest rate 1.5%; volatility factor, derived by using comparable public companies in the same industry, was 28% and the expected term of the warrant to be 5 years.

Additionally, Pariter waived cash commissions of $304,001 by electing to purchase 91,843 shares of the Company's common stock at the offering price of $3.31 per share (without commissions or expenses) and other fees of $1,000 were also paid and expensed. The net proceeds to the Company were $2,941,939.

On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock at $3.31 per share in its private placement offering to accredited investors in exchange for gross proceeds of $1,218,080. Pariter was granted 36,800 common shares at $3.31 per share or the equivalent of $121,808 and was paid $48,723 for acting as a placement agent for the offering, which was charged against the proceeds and recorded as a reduction of additional paid-in capital and was issued 36,800 five-year warrants exercisable at $3.31 per share. The valuation of the warrants issued to Pariter was approximately $34,000 using the Black Scholes valuation model. The assumptions used in the Black Scholes valuation model to value these warrants were: stock price and exercise price $3.31; risk free interest rate 1.73%; volatility factor, derived by using comparable public companies in the same industry, was 28% and the expected term of the warrant to be 5 years. Other fees of $2,000 and additional legal fees of $9,001 were also paid. The net proceeds to the Company were $1,158,357. All funds received by the Company have been loaned to Coquí.

From May 19, 2014 to June 11, 2014 the Company received approximately $566,000 from investors offering to purchase approximately 171,000 shares of its common stock in its private placement offering. This amount is being held in the Company's legal counsel's escrow account at June 30, 2014 until the subscriptions are accepted and there is a closing of this tranche.

The Company's principal shareholder is Coquí. Coquí is a radio pharmaceutical company that seeks to establish a medical isotope production facility (the "Facility") to produce Molybdenum-99 ("Mo-99"). Mo-99 is used to manufacture one of the principal medical isotopes used for diagnostic applications in nuclear medicine.

The net proceeds of the Company's private placement offering will be used, primarily through advances to Coquí, for preparing an environmental report on the site where the Facility is to be located, paying Nuclear Regulatory Commission ("NRC") counsel, hiring contractors to begin preliminary work on the Facility prior to receiving any NRC licensing, and for general working capital purposes.

Following completion of the required audit of Coquí, the intent is for Coquí to merge with the Company.

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Loan to Principal Stockholder

6 Months Ended

Jun. 30, 2014

Loan to Principal Stockholder [Abstract]

Loan to Principal Stockholder

Note H - Loan to Principal Stockholder

As of June 30, 2014 and December 31, 2013, the Company owes $88,195 and $3,825, respectively, to Coquí, the controlling stockholder of the Company, for the funding of its current operating expenses. The amount owing is unsecured, non-interest bearing, and due on demand.

The Company has advanced $4,109,295 of the net proceeds from the sales of its common stock in its private placement to Coquí, which was recorded on the accompanying balance sheet as a loan to principal stockholder. As of June 30, 2014, the total net loan to Coqui was $4,021,100.

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Concentration of Credit Risk

6 Months Ended

Jun. 30, 2014

Concentration of Credit Risk [Abstract]

Concentration of Credit Risk

Note I - Concentration of Credit Risk

The Company loaned its cash from proceeds from the sale of its common stock from its private placement offering to its controlling stockholder. At times cash deposited with financial institutions may exceed federally insured limits. The Company has not experienced any losses in such accounts through June 30, 2014. At June 30, 2014, the Company cash balances were not insured.

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Subsequent Events

6 Months Ended

Jun. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Note K - Subsequent Events

The Company has implemented the most recent FASB accounting pronouncement for reporting subsequent events. This standard establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued. The adoption of this accounting pronouncement did not impact our financial position or results of operations. The Company evaluated all events or transactions that occurred after June 30, 2014, up through the date these financial statements were issued and no subsequent events occurred that required disclosure in the accompanying consolidated financial statements.

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Related Party Transactions (Details) (USD $)	6 Months Ended			12 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014 Halter Financial Group, Inc. [Member]	Dec. 31, 2013 Halter Financial Group, Inc. [Member]	Jun. 30, 2014 Coqui [Member]	Dec. 31, 2013 Coqui [Member]
Related Party Transaction [Line Items]
Managed cash transferred from the bankruptcy creditor's trust				$ 1,000
Capital contributed to support operations	375	3,400	375	5,600
Amount contributed to support operations	$ 84,370				$ 84,370	$ 3,825

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Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities:
Net loss for the period	$ (94,392)	$ (5,894)
Changes in operating working capital items:
Increase in Accounts payable	17,647	1,849
Net Cash Used in Operating Activities	(76,745)	(4,045)
Cash Flows from Investing Activities:
Cash Flows from Financing Activities:
Proceeds from issuance of common stock, net of offering cost	4,101,295
Loan to Stockholder	(4,109,295)
Advance from Stockholder	84,370
Capital contributed to support operations	375	3,400
Net Cash Provided by Financing Activities	76,745	3,400
Increase in Cash		(645)
Cash at beginning of period	238	874
Cash at end of period	238	229
Supplemental Disclosure of Interest and Income Taxes Paid:
Interest paid during the period
Income taxes paid during the period

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Summary of Significant Accounting Policies and Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies and Recent Accounting Pronouncements [Abstract]

Summary of Significant Accounting Policies and Recent Accounting Pronouncements

Note E - Summary of Significant Accounting Policies and Recent Accounting Pronouncements

Use of Estimates

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.

Cash and cash equivalents

The Company considers all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Income taxes

The Company files income tax returns in the United States of America and various states, as appropriate and applicable. As a result of the Company's bankruptcy action, the Company is no longer subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for any period prior to January 1, 2010. The Company does not anticipate any examinations of returns filed for periods ending on or after December 31, 2009.

The Company uses the asset and liability method of accounting for income taxes. At June 30, 2014 and December 31, 2013, respectively, the deferred tax asset and deferred tax liability accounts, as recorded when material to the financial statements, are entirely the result of temporary differences. Temporary differences generally represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily accumulated depreciation and amortization, allowance for doubtful accounts and vacation accruals.

The Company has adopted the provisions required by the Income Taxes topic of the FASB Accounting Standards Codification. The Codification Topic requires the recognition of potential liabilities as a result of management's acceptance of potentially uncertain positions for income tax treatment on a "more-likely-than-not" probability of an assessment upon examination by a respective taxing authority. As a result of the implementation of Codification's Income Tax Topic, the Company did not incur any liability for unrecognized tax benefits.

Income (Loss) per share

Basic earnings (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the respective period presented in our accompanying unaudited financial statements.

Fully diluted earnings (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company's net income (loss) position at the calculation date.

As of June 30, 2014 and December 31, 2013 and subsequent thereto, the Company had no outstanding stock warrants, options or convertible securities which could be considered as dilutive for purposes of the loss per share calculation. At June 30, 2014 there were 129,500 outstanding warrants to purchase shares of common stock of the Company which could dilute future earnings per share.

Recent Accounting Pronouncements

In April 2014, we adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Update No (ASU 2014-08), "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity". ASU 2014-08 on Discontinued Operations changes the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new guidance, a discontinued operation is defined as: (i) a disposal of a component or group of components that is disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity's operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of acquisition. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment, or (iv) other major parts of an entity. Under the current US GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement component after the disposal. The new guidance eliminates these criteria.

Except the Accounting Standards Update 2014-10 indicated above, the Company does not expect the adoption of any other recent accounting pronouncements to have a material impact on its financial statements.

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Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Summary of Significant Accounting Policies and Recent Accounting Pronouncements [Abstract]
Outstanding stock warrants, options or convertible securities which could be considered as dilutive for purposes of the loss per share calculation
Outstanding warrants which could dilute future earnings per share	129,500