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: September 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)

(787) 685-5046

(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 November 11, 2014 is as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.001 par value	11,611,748

SMSA CRANE ACQUISITION CORP.

UNAUDITED FINANCIAL STATEMENTS

SEPTEMBER 30, 2014 AND 2013

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	1
	Balance Sheets as of September 30, 2014 (unaudited) and December 31, 2013	1
	Statements of Operations for the three months and nine months ended September 30, 2014 and 2013 (unaudited)	2
	Statements of Cash Flows for the nine months ended September 30, 2014 and 2013 (unaudited)	3
	Notes to Financial Statements (unaudited)	4
	Forward – Looking Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	13
Item 4.	Controls and Procedures	13
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	14
Item 1A.	Risk Factors	14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14
Item 3.	Defaults Upon Senior Securities	14
Item 4.	Mine Safety Disclosures	14
Item 5.	Other Information	14
Item 6.	Exhibits	14

SIGNATURES 15

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

SMSA Crane Acquisition Corp.

Balance Sheets

	September 30,			December 31,
	2014			2013
	(Unaudited)
ASSETS
Current Assets
Cash on hand	$	238		$	238
Due from Parent		4,469,901			—
Total Current Assets	$	4,470,139		$	238
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued expenses	$	6,448		$	22,910
Due to Parent		—			3,825
Total Liabilities		6,448			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. 11,611,748 shares and 10,000,005 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively		11,612			10,000
Additional paid-in capital		4,657,076			58,835
Accumulated deficit		(204,997	)		(95,332	)
Total Stockholders' Equity (Deficit)		4,463,691			(26,497	)
Total Liabilities and Stockholders' Equity (Deficit)	$	4,470,139		$	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						Nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
Revenues	$	—		$	—		$	—		$	—
Operating expenses
Professional fees		11,546			1,500			98,593			5,525
Other general and administrative costs		3,727			380			11,072			2,250
Total operating expenses		15,273			1,880			109,665			7,775
Loss from operations		(15,273	)		(1,880	)		(109,665	)		(7,775	)
Provision for income taxes		—			—			—			—
Net Loss	$	(15,273	)	$	(1,880	)	$	(109,665	)	$	(7,775	)
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		11,499,297			10,000,005			11,111,447			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

	Nine months ended
	September 30,
	2014			2013
Cash Flows from Operating Activities
Net loss for the period	$	(109,665	)	$	(7,775	)
Adjustments to reconcile net loss to net cash provided by operating activities
Changes in operating working capital items:
Increase (decrease) in Accounts payable		(16,462	)		1,565
Net Cash Used in Operating Activities		(126,127	)		(6,210	)
Cash Flows from Investing Activities		—			—
Cash Flows from Financing Activities
Proceeds from issuance of common stock, net of offering cost		4,599,478			—
Loan to Parent		(4,469,901	)		—
Repayment of Parent's advance		(3,825	)		—
Capital contributed to support operations		375			5,600
Net Cash Provided by Financing Activities		126,127			5,600
Increase (Decrease) in Cash		—			(610	)
Cash at beginning of period		238			874
Cash at end of period	$	238		$	264
Supplemental Disclosure of Interest and Income Taxes Paid
Interest paid for the period	$	—		$	—
Income taxes paid for the period	$	—		$	—

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

3

SMSA CRANE ACQUISITION CORP.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

SEPTEMBER 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 and nine month periods 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.

Company Background

SMSA Crane Acquisition Corp. 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 caused 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, had 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” or the “Parent”) 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 and Coquí became the majority controlling stockholder of the Company.

Description of the Company’s Business Plan

The Company was contemplating a possible merger with Coquí, the Parent, during the first nine months of 2014 and in the second half of 2013. The Company's business plan is now to pursue a business combination through the acquisition of, or merger with, an existing company (which may include Coquí, the Parent) seeking the perceived advantages of being a publicly traded corporation. The Company is not restricting its potential target companies to any specific business, industry or geographical location. No assurances can be given that the Company will be successful in locating or negotiating with any target company.

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

The Company’s Plan of Reorganization (the “Plan”) was confirmed by the United States Bankruptcy Court, Northern District of Texas – Dallas Division 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.

4

SMSA CRANE ACQUISITION CORP.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

SEPTEMBER 30, 2014

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 the June 30, 2014 quarterly report on Form 10-Q and its adoption resulted in the removal of previously required development stage.

Note D - Company Liquidity

The Company has no post-bankruptcy operating history; however, the Company has raised approximately $4.6 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 possible reverse merger transaction with Coquí, the Parent, as discussed in Note A and below. The Company is no longer restricting its potential target company to Coquí, the Parent. No assurances can be given that the Company will be successful in locating or negotiating with any target company.

On February 14, 2014, the Company closed on the sale of 927,000 shares of common stock, the minimum amount offered, in a private placement to accredited investors for gross proceeds of $3,068,370 and issued 91,843 additional shares to Pariter Securities, LLC (“Pariter”) for its services as placement agent in the offering. The net proceeds to the Company from the offering were $2,941,939. On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock in a private placement to accredited investors for gross proceeds of $1,218,080 and issued 36,800 additional shares to Pariter for its services as placement agent. The net proceeds to the Company from the offering, including all offering costs, were $1,158,356. On August 25, 2014, the Company closed on the sale of 171,000 shares of common stock in a private placement to accredited investors for gross proceeds of $566,010 and issued 17,100 additional shares to Pariter for its services as placement agent. The net proceeds to the Company from the offering, including all offering costs were $498,183. The aggregate net proceeds from the three private placements was approximately $4.6 million, all of which has been advanced to Coquí (see Note G).

The Company is not conducting operations pending completion of a merger with an existing company or Coquí, the Parent. The Company is currently dependent upon financings to pay its legal and accounting fees. 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 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 takeovers 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

SEPTEMBER 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.  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 September 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 (consisting of outstanding warrants).

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding 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 December 31, 2013, the Company had no outstanding stock warrants, options or convertible securities which could be considered dilutive for purposes of the loss per share calculation. At September 30, 2014 there were 146,600 outstanding common stock warrants issued to Pariter 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

SEPTEMBER 30, 2014

Except the Accounting Standards Update 2014-10 indicated above (see Note C), 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, the Parent; see Note A) to support our operations.  This contributed capital totaled $375 and $5,600 for the nine months ended September 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.

The Company has advanced all of the net proceeds of its private placement to Coquí, the Parent, which advances have not been documented by any loan agreements or notes. Additionally, the Company’s former Chief Executive Officer was a principal of Pariter which raised capital in the private placement and has received compensation directly from the private placement fees. See Note J.

During the nine months ended September 30, 2014 and the year ended December 31, 2013, Coquí, the Parent, contributed back to the Company a total of $137,578 and $3,825 to support the Company’s operating costs of being a public entity and raising money. This amount has been netted with the loan payable to Coquí, the Parent, in the accompanying balance sheet at September 30, 2014 (see Note H).

Note H - Loan to Parent

The Company has advanced $4,607,479 of the net proceeds from the sales of its common stock in its private placements to Coquí, the Parent, which was recorded on the accompanying balance sheet as a loan to Parent.

As of September 30, 2014 and December 31, 2013, the Company owes $137,578 and $3,825, respectively, to Coquí, the Parent of the Company, for the funding of its current operating expenses. The amount owing is unsecured, non-interest bearing, and due on demand.

As of September 30, 2014, the total net loan due from Coqui, the Parent was $4,469,901

Note I - Concentration of Credit Risk

The Company loaned cash from the proceeds from the private placements to its Parent. At times cash deposited with financial institutions may exceed federally insured limits. The Company has not experienced any losses in such accounts through September 30, 2014. At September 30, 2014, the Company cash balances were not insured.

Note J - Capital Stock Transactions

Private Placement Closing - February 14, 2014

The Company in 2014 conducted 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

SEPTEMBER 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 a private placement to accredited investors for gross proceeds of $3,068,370.  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.  Pariter was also 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: a stock price and exercise price of $3.31; a risk free interest rate of 1.5%; volatility factor, derived by using comparable public companies in the same industry, of 28% and an expected term of 5 years.

Additionally, Pariter waived cash commissions of $304,001 by electing to receive 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 from the private placement were $2,941,939. All funds received by the Company have been loaned to Coquí, the Parent.

Private Placement Closing - April 28, 2014

On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock at $3.31 per share in a private placement to accredited investors 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. Pariter was also issued 36,800 five-year warrants exercisable at $3.31 per share. Other fees of $2,000 and additional legal fees of $9,001 were also paid. The net proceeds to the Company were $1,158,356. 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: a stock price and exercise price of $3.31; a risk free interest rate of 1.73%; a volatility factor, derived by using comparable public companies in the same industry, of 28% and an expected term of 5 years. All funds received by the Company have been loaned to Coquí, the Parent.

Private Placement Closing - August 25, 2014

On August 25, 2014, SMSA Crane closed on the sale of 171,000 shares of common stock at $3.31 per share in a private placement to accredited investors for gross proceeds of $566,010. Other fees of $350 and additional legal fees of $53,017 were also paid and expensed. The net proceeds to the Company from the offering, including all offering costs, were $498,183. Additionally, Pariter was granted 17,100 common shares at $3.31 per share or the equivalent of $56,601 and was paid $14,460 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. Pariter was also issued 17,100 five-year warrants exercisable at $3.31 per share. The valuation of the warrants issued to Pariter was approximately $16,000 using the Black Scholes valuation model. The assumptions used in the Black Scholes valuation model to value these warrants were: a stock price and exercise price of $3.31; a risk free interest rate of 1.69%; a volatility factor, derived by using comparable public companies in the same industry, of 28% and an expected term of 5 years. All funds received by the Company have been loaned to Coquí, the Parent.

The total net proceeds from the above three private placements were approximately $4,599,000.

The net proceeds of the Company’s private placements will be used, primarily through advances to Coquí, the Parent, for preparing an environmental report on the site where Coquí’s proposed 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.

8

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 business combination through the acquisition of, or merger with, an existing company (which may include Coquí, the Parent) and our ability to raise necessary capital. 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 prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements.

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.

9

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 three months and nine months periods ended September 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 under “Forward-Looking Statements” above, 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 was contemplating a possible merger by the Company and Coquí, the Parent, during the first nine months of 2014. The Company's business plan is now to pursue a business combination through the acquisition of, or merger with, an existing company (which may include Coquí, the Parent) seeking the perceived advantages of being a publicly traded corporation. The Company is not restricting its potential target companies to any specific business, industry or geographical location. No assurances can be given that the Company will be successful in locating or negotiating with any target company.

In 2013, Coquí, the Parent, acquired control of the Company by purchasing 9,900,000 shares of common stock in a private transaction.

On February 14, 2014, the Company closed on the sale of 927,000 shares of common stock, the minimum amount offered, in a private placement to accredited investors for gross proceeds of $3,068,370 and issued 91,843 shares to Pariter. 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 a private placement to accredited investors for gross proceeds of $1,218,080 and issued 36,800 shares to Pariter. The net proceeds to the Company from the offering, including all offering costs, was $1,158,356. On August 25, 2014, the Company closed on the sale of 171,000 shares of common stock in a private placement to accredited investors for gross proceeds of $566,010. The net proceeds to the Company from the offering, including all offering costs was $498,183. The total net proceeds from the three private placements was approximately $4,599,000.

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, which may or may not result from a business combination through the acquisition of, or merger with, an existing company. 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.

10

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 [a material] 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 September 30, 2014 and 2013

Revenue

The Company had no revenue for the three month periods ended September 30, 2014 or 2013, respectively.

Operating Expenses

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

	Three Months Ended September 30,
	2014		2013
Operating expenses	$	15,273	$	1,880

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.

11

It is anticipated that future operating expenses will increase as the Company complies with its periodic reporting requirements and effects a business combination, although there can be no assurance that the Company will be successful in effecting a business combination

For the nine month periods ended September 30, 2014 and 2013

Revenue

The Company had no revenue for the nine month periods ended September 30, 2014 or 2013 respectively.

Operating Expenses

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

	Nine Months Ended September 30,
	2014		2013
Operating expenses	$	109,665	$	7,775

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 and 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 a business combination, although there can be no assurance that the Company will be successful in effecting a business combination.

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

	Nine Months Ended September 30,
	2014			2013
Net cash used in operating activities	$	(126,127	)	$	(6,210	)
Net cash provided by investing activities		—			—
Net cash provided by financing activities		126,127			5,600
Net cash inflow	$	—		$	(610	)

Operating Activities

Cash used in operating activities for the nine months ended September 30, 2014, consisted of net loss as well as the effect of changes in working capital. Cash used in operating activities for the nine months ended September 30, 2014, consisted of a net loss of $109,665. Total cash provided by working capital totaled $16,462. 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 nine months ended September 30, 2014.

Investing Activities

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

12

Financing Activities

Net cash provided by our financing activities for the nine months ended September 30, 2014, as compared to 2013 increased by $120,527. This increase was due to the three closings of our private placements with total net proceeds of $4,599,478. This increase in cash provided by financing activities was offset by our loans to Coqui, the Parent of $4,469,901 and a decrease in advance from Parent of $3,825.

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 the Company’s private placements .

Pending our completion of a business combination, we are not conducting any business activities. Our only operating activities are to comply with Securities and Exchange Commission reporting requirements and complete a business combination through the acquisition of, or merger with, an existing company (which may include Coquí, the Parent) seeking the perceived advantages of being a publicly traded corporation. We have no liquidity having loaned all of our cash to Coquí, the Parent.

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 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.

13

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 August 25, 2014, the Company closed on the sale of 171,000 shares of common stock in a private placement to accredited investors for gross proceeds of $566,010. The net proceeds to the Company from the offering, including all offering costs was $498,183. Additionally, Pariter was granted 17,100 common shares at $3.31 per share or the equivalent of $56,601 and was paid $14,460 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.

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 September 30, 2014.

ITEM 4. MINE SAFETY DISCLOSURES.

Not Applicable.

ITEM 5. OTHER INFORMATION.

Not Applicable.

ITEM 6. EXHIBITS.

Exhibit Number	Description
31	Rule 13a-14(a)/15d-14(a) Certification - Principal Executive Officer and Principal Financial Accounting Officer
32	Section 1350 Certification
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

14

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: November 14, 2014	By:	/s/ Carmen I. Bigles
	Name:	Carmen I. Bigles
	Title:	President, Chief Executive Officer, and Secretary (Principal Financial Officer and Principal Accounting Officer)

15

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 Certification
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

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.

I am 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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.

I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 14, 2014

/s/ Carmen I. Bigles

Carmen I. Bigles

Chief Executive Officer, President and Secretary (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, President and Secretary 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 September 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 September 30, 2014.

This Certification is executed as of November 14, 2014

By:	/s/ Carmen I. Bigles
Name:	Carmen I. Bigles
Title:	Chief Executive Officer, President and Secretary (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

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Company Liquidity

9 Months Ended

Sep. 30, 2014

Company Liquidity [Abstract]

Company Liquidity

Note D – Company Liquidity

The Company has no post-bankruptcy operating history; however, the Company has raised approximately $4.6 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 possible reverse merger transaction with Coquí, the Parent, as discussed in Note A and below. The Company is no longer restricting its potential target company to Coquí, the Parent. No assurances can be given that the Company will be successful in locating or negotiating with any target company.
 

On February 14, 2014, the Company closed on the sale of 927,000 shares of common stock, the minimum amount offered, in a private placement to accredited investors for gross proceeds of $3,068,370 and issued91,843 additional shares to Pariter Securities, LLC (“Pariter”) for its services as placement agent in the offering. The net proceeds to the Company from the offering were $2,941,939. On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock in a private placement to accredited investors for gross proceeds of $1,218,080 and issued 36,800 additional shares to Pariter for its services as placement agent. The net proceeds to the Company from the offering, including all offering costs, were $1,158,356. On August 25, 2014, the Company closed on the sale of 171,000 shares of common stock in a private placement to accredited investors for gross proceeds of $566,010 and issued 17,100 additional shares to Pariter for its services as placement agent. The net proceeds to the Company from the offering, including all offering costs were $498,183.The aggregate net proceeds from the three private placements was approximately $4.6 million, all of which has been advanced to Coquí (see Note G).
 

The Company is not conducting operations pending completion of a merger with an existing company or Coquí, the Parent. The Company is currently dependent upon financings to pay its legal and accounting fees. 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 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 takeovers 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

9 Months Ended

Sep. 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 the June 30, 2014 quarterly report on Form 10-Q and its adoption resulted in the removal of previously required development stage.

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Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current Assets
Cash on hand	$ 238	$ 238
Due from Parent	4,469,901
Total Current Assets	4,470,139	238
Current Liabilities
Accounts payable and accrued expenses	6,448	22,910
Due to Parent		3,825
Total Liabilities	6,448	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. 11,611,748 shares and 10,000,005 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	11,612	10,000
Additional paid-in capital	4,657,076	58,835
Accumulated deficit	(204,997)	(95,332)
Total Stockholders' Equity (Deficit)	4,463,691	(26,497)
Total Liabilities and Stockholders' Equity (Deficit)	$ 4,470,139	$ 238

XML

Basis of Presentation, Background and Description of Business

9 Months Ended

Sep. 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 and nine month periods 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.

Company Background

SMSA Crane Acquisition Corp.  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 caused 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, had 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” or the“Parent”) 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 and Coquí became the majority controlling stockholder of the Company.

Description of the Company's Business Plan
 

The Company was contemplating a possible merger with Coquí, the Parent, during the first nine months of 2014 and in the second half of 2013.The Company's business plan is now to pursue a business combination through the acquisition of, or merger with, an existing company (which may include Coquí, the Parent) seeking the perceived advantages of being a publicly traded corporation. The Company is not restricting its potential target companies to any specific business, industry or geographical location. No assurances can be given that the Company will be successful in locating or negotiating with any target company.

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Capital Stock Transactions (Details) (USD $)

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

1 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Aug. 31, 2014

Placement agent, Pariter [Member]

Apr. 30, 2014

Placement agent, Pariter [Member]

Feb. 28, 2014

Placement agent, Pariter [Member]

Aug. 31, 2014

Placement agent, Pariter [Member]

Warrant [Member]

Apr. 30, 2014

Placement agent, Pariter [Member]

Warrant [Member]

Feb. 28, 2014

Placement agent, Pariter [Member]

Warrant [Member]

Sep. 30, 2014

Minimum [Member]

Sep. 30, 2014

Maximum [Member]

Aug. 31, 2014

Accredited investors [Member]

Apr. 30, 2014

Accredited investors [Member]

Feb. 28, 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

$ 3.31

$ 3.31

Shares of common stock issued for cash

91,843

171,000

368,000

927,000

Issuance of shares for cash

304,001

566,010

1,218,080

3,068,370

Proceeds from issuance of common stock, net of offering cost

4,599,478

498,183

1,158,356

2,941,939

Professional fees

11,546

1,500

98,593

5,525

14,460

48,723

125,431

Other fees paid and expensed

350

2,000

1,000

Legal fees paid

53,017

9,001

Common shares granted for services, shares

17,100

36,800

91,843

Common shares granted for services

56,601

121,808

Warrants issued

17,100

36,800

92,700

Expiration period

5 years

5 years

5 years

Warrant exercise price

$ 3.31

$ 3.31

$ 3.31

Value of warrants issued

$ 16,000

$ 34,000

$ 84,000

Model used to estimate fair value

Black Scholes

Black Scholes

Black Scholes

Option exercise price

$ 3.31

$ 3.31

$ 3.31

Risk free interest rate

1.69%

1.73%

1.50%

Expected volatility rate

28.00%

28.00%

28.00%

Option life

5 years

5 years

5 years

Number of private placements

3

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

9 Months Ended

Sep. 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 United States Bankruptcy Court,Northern District of Texas – Dallas Division 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 $)	Sep. 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	11,611,748	10,000,005
Common stock, shares outstanding	11,611,748	10,000,005

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Basis of Presentation, Background and Description of Business (Details) (USD $)	9 Months Ended		1 Months Ended			3 Months Ended
	Sep. 30, 2014	Sep. 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	$ 4,599,478		$ 9,500			$ 280,000
Common stock issued for cash, price per share			$ 0.001

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 11, 2014
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 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	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,611,748

XML

Company Liquidity (Details) (USD $)	9 Months Ended			1 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Aug. 31, 2014 Pariter	Apr. 30, 2014 Pariter	Feb. 28, 2014 Pariter	Aug. 31, 2014 Accredited investors [Member]	Apr. 30, 2014 Accredited investors [Member]	Feb. 28, 2014 Accredited investors [Member]
Related Party Transaction [Line Items]
Proceeds from issuance of common stock, net of offering cost	$ 4,599,478						$ 498,183	$ 1,158,356	$ 2,941,939
Shares of common stock issued for cash						91,843	171,000	368,000	927,000
Issuance of shares for cash						304,001	566,010	1,218,080	3,068,370
Shares issued for services				17,100	36,800	91,843
Number of private placements	3
Proceeds from private placements	$ 4,600,000
Preferred stock, shares authorized	10,000,000		10,000,000
Common stock, shares authorized	100,000,000		100,000,000

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Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statements of Operations [Abstract]
Revenues
Operating expenses
Professional fees	11,546	1,500	98,593	5,525
Other general and administrative costs	3,727	380	11,072	2,250
Total operating expenses	15,273	1,880	109,665	7,775
Loss from operations	(15,273)	(1,880)	(109,665)	(7,775)
Provision for income taxes
Net Loss	$ (15,273)	$ (1,880)	$ (109,665)	$ (7,775)
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	11,499,297	10,000,005	11,111,447	10,000,005

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Related Party Transactions

9 Months Ended

Sep. 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, the Parent; see Note A) to support our operations. This contributed capital totaled $375 and $5,600 for the nine months endedSeptember 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.

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

During the nine months endedSeptember 30, 2014 and the year ended December 31, 2013, Coquí, the Parent, contributed back to the Company a total of $137,578 and $3,825 to support the Company's operating costs of being a public entity and raising money. This amount has been netted with the loan payable to Coquí, the Parent, in the accompanying balance sheet at September 30, 2014 (see Note H).

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Fair Value of Financial Instruments

9 Months Ended

Sep. 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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Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Details)	9 Months Ended	12 Months Ended
	Sep. 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 common stock warrants which could dilute future earnings per share	146,600

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Capital Stock Transactions

9 Months Ended

Sep. 30, 2014

Capital Stock Transactions [Abstract]

Capital Stock Transactions

Note J - Capital Stock Transactions

Private Placement Closing - February 14, 2014

The Company in 2014 conducted 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 a private placement  to accredited investors for gross proceeds of $3,068,370. 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. Pariter was also issued 92,700five-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: a stock price and exercise price of $3.31; a risk free interest rate of 1.5%; volatility factor, derived by using comparable public companies in the same industry, of 28% and an expected term of 5 years.

Additionally, Pariter waived cash commissions of $304,001 by electing to receive 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 from the private placement were $2,941,939. All funds received by the Company have been loaned to Coquí, the Parent. 

Private Placement Closing - April 28, 2014 

On April 28, 2014 the Company closed on the sale of 368,000 shares of common stock at $3.31 per share in a private placement to accredited investors 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 Pariter was also issued 36,800five-year warrants exercisable at $3.31 per share.Other fees of $2,000 and additional legal fees of $9,001 were also paid. The net proceeds to the Company were $1,158,356.  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: a stock price and exercise price of $3.31; a risk free interest rate of 1.73%; a volatility factor, derived by using comparable public companies in the same industry, of 28% and an expected term of 5 years. All funds received by the Company have been loaned to Coquí, the Parent. 

Private Placement Closing - August 25, 2014 

On August 25, 2014, SMSA Crane closed on the sale of 171,000 shares of common stock at $3.31 per share in a private placement to accredited investors for gross proceeds of $566,010. Other fees of $350 and additional legal fees of $53,017 were also paid and expensed.The net proceeds to the Company from the offering, including all offering costs, were $498,183.Additionally, Pariter was granted 17,100 common shares at $3.31 per share or the equivalent of $56,601 and was paid $14,460 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. Pariter was also issued 17,100 five-year warrants exercisable at $3.31 per share. The valuation of the warrants issued to Pariter was approximately $16,000 using the Black Scholes valuation model. The assumptions used in the Black Scholes valuation model to value these warrants were: a stock price and exercise price of $3.31; a risk free interest rate of 1.69%; a volatility factor, derived by using comparable public companies in the same industry, of 28% and an expected term of 5 years.All funds received by the Company have been loaned to Coquí, the Parent.

The total net proceeds from the above three private placements were approximately $4,599,000.

The net proceeds of the Company's private placements will be used, primarily through advances to Coquí, the Parent, for preparing an environmental report on the site where Coquí's proposed 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.

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Loan to Parent

9 Months Ended

Sep. 30, 2014

Loan to Parent [Abstract]

Loan to Parent

Note H - Loan to Parent

The Company has advanced $4,607,479 of the net proceeds from the sales of its common stock in its private placements to Coquí, the Parent, which was recorded on the accompanying balance sheet as a loan to Parent. 
 

As of September 30, 2014 and December 31, 2013, the Company owes $137,578 and $3,825, respectively, to Coquí,the Parent of the Company, for the funding of its current operating expenses. The amount owing is unsecured, non-interest bearing, and due on demand.
 

As of September 30, 2014, the total net loan due from Coqui, the Parent was $4,469,901

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Concentration of Credit Risk

9 Months Ended

Sep. 30, 2014

Concentration of Credit Risk [Abstract]

Concentration of Credit Risk

Note I - Concentration of Credit Risk

The Company loaned cash from the proceeds from the private placements to its Parent. At times cash deposited with financial institutions may exceed federally insured limits. The Company has not experienced any losses in such accounts through September 30, 2014. At September 30, 2014, the Company cash balances were not insured.

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

9 Months Ended

Sep. 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. 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 September 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 (consisting of outstanding warrants).

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding 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 December 31, 2013, the Company had no outstanding stock warrants, options or convertible securities which could be considered dilutive for purposes of the loss per share calculation. At September 30, 2014 there were 146,600 outstanding common stock warrants issued to Pariter 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 (see Note C), 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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Loan to Parent (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Related Party Transaction [Line Items]
Loan to parent	$ 4,469,901
Due to Parent			3,825
Due from Parent	4,469,901
Coqui [Member]
Related Party Transaction [Line Items]
Loan to parent	4,607,479
Due to Parent	137,578		3,825
Due from Parent	$ 4,469,901

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Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash Flows from Operating Activities
Net loss for the period	$ (109,665)	$ (7,775)
Changes in operating working capital items:
Increase (decrease) in Accounts payable	(16,462)	1,565
Net Cash Used in Operating Activities	(126,127)	(6,210)
Cash Flows from Investing Activities
Cash Flows from Financing Activities
Proceeds from issuance of common stock, net of offering cost	4,599,478
Loan to Parent	(4,469,901)
Repayment of Parent's advance	(3,825)
Capital contributed to support operations	375	5,600
Net Cash Provided by Financing Activities	126,127	5,600
Increase (Decrease) in Cash		(610)
Cash at beginning of period	238	874
Cash at end of period	238	264
Supplemental Disclosure of Interest and Income Taxes Paid
Interest paid for the period
Income taxes paid for the period

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Summary of Significant Accounting Policies and Recent Accounting Pronouncements

9 Months Ended

Sep. 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. 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 September 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 (consisting of outstanding warrants).

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding 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 December 31, 2013, the Company had no outstanding stock warrants, options or convertible securities which could be considered dilutive for purposes of the loss per share calculation. At September 30, 2014 there were 146,600 outstanding common stock warrants issued to Pariter 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 (see Note C), 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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Related Party Transactions (Details) (USD $)	9 Months Ended			12 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Halter Financial Group, Inc. [Member]	Dec. 31, 2013 Halter Financial Group, Inc. [Member]	Sep. 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	5,600	375	5,600
Amount contributed to support operations					$ 137,578	$ 3,825