FORM
10-Q


U.S.
SECURITIES AND EXCHANGE COMMISSION


Washington,
D.C. 20549





x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE


SECURITIES
EXCHANGE ACT OF 1934





For the
quarterly period ended June 30, 2010





OR





 ̈
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 000-52932




SRKP 16,
Inc.


(Exact
name of registrant as specified in its charter)





Delaware
              20-8057585(State
      or other jurisdiction
              (I.R.S.
      Employer Identification Number)of
      incorporation or organization)





4737 North Ocean Drive,
Suite 207, Lauderdale by the Sea, FL 33308


(Address
of principal executive offices)





(310)
203-2902


(Registrant’s
telephone number, including area code)





No
change


(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 Securities Exchange Act of 1934 during the preceding 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 x No  ̈.





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate website, 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 o No  ̈





Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, or a
non-accelerated file.  See definition of accelerated filer and large
accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):





Large
      accelerated filer     ̈
            Accelerated
      filer                      ̈Non-accelerated
      filer       ̈
            Smaller
      reporting company    x.(Do
      not check if a 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 x No o.




APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING


THE
PRECEDING FIVE YEARS:





Indicate by check mark whether the
registrant has filed all documents and reports required to be filed by Sections
12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court. Yes o No  ̈.





APPLICABLE
ONLY TO CORPORATE ISSUERS





Indicate
the number of shares outstanding of each of the issuer’s classes of common
stock, as of the latest practicable date: 7,096,390 shares of common stock, par
value $.0001 per share, outstanding as of July 26, 2010.










SRKP
16, INC.





-
INDEX -





PagePART
      I – FINANCIAL INFORMATION:Item
      1.
                                                                                Financial
      Statements:
                                                                                
                                                                                1Balance
      Sheets as of June 30, 2010 (Unaudited) and December 31,
    2009
                                                                                
                                                                                2Statements
      of Operations (Unaudited) for the Three and Six Months Ended June 30, 2010
      and June 30, 2009 and for the Cumulative Period from January 3, 2007
      (Inception) to June 30, 2010
                                                                                
                                                                                3Statements
      of Cash Flows (Unaudited) for the Six Months Ended June 30, 2010 and June
      30, 2009 and for the Cumulative Period from January 3, 2007(Inception)
      to June 30, 2010
                                                                                
                                                                                4Notes
      to Financial Statements
                                                                                
                                                                                5Item
      2.
                                                                                Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
                                                                                
                                                                                8Item
      3.
                                                                                Quantitative
      and Qualitative Disclosures About Market Risk
                                                                                
                                                                                11Item
      4.
                                                                                Controls
      and Procedures
                                                                                
                                                                                11PART II – OTHER
      INFORMATION:Item
      1.
                                                                                Legal
      Proceedings
                                                                                
                                                                                11Item
      1A.
                                                                                Risk
      Factors
                                                                                
                                                                                11Item
      2.
                                                                                Unregistered
      Sales of Equity Securities and Use of Proceeds
                                                                                
                                                                                11Item
      3.
                                                                                Defaults
      Upon Senior Securities
                                                                                
                                                                                12Item
      4.
                                                                                Removed
      and Reserved
                                                                                
                                                                                12Item
      5.
                                                                                Other
      Information
                                                                                
                                                                                12Item
      6.
                                                                                Exhibits
                                                                                
                                                                                12Signatures
                                                                                
                                                                                13







PART I – FINANCIAL
INFORMATION





Item
1.  Financial Statements.





The
accompanying financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
in accordance with the instructions for Form 10-Q.  Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.





In the
opinion of management, the financial statements contain all material
adjustments, consisting only of normal recurring adjustments necessary to
present fairly the financial condition, results of operations, and cash flows of
the Company for the interim periods presented.





The
results for the period ended June 30, 2010 are not necessarily indicative of the
results of operations for the full year. These financial statements and related
footnotes should be read in conjunction with the financial statements and
footnotes thereto included in the Company’s Form 10-K filed with the Securities
and Exchange Commission for the period ended December 31, 2009.




1





SRKP
16, INC.


(A
Development Stage Company)


BALANCE
SHEETS





June 30,
                
                
                December 31,2010
                
                
                2009(Unaudited)ASSETSCURRENT
      ASSETS:Cash
                
                $
                24,034
                
                
                $
                15,351LIABILITIES
      AND STOCKHOLDERS' EQUITY (DEFICIT)CURRENT
      LIABILITIES:Due
      to Stockholders
                
                $
                132,500
                
                
                $
                102,500COMMITMENTS
      AND CONTINGENCIESSTOCKHOLDERS'
      EQUITY (DEFICIT):Preferred
      stock, $.0001 par value 10,000,000 shares authorized, none
      issued
                
                
                —
                
                
                
                —Common
      stock, $.0001 par value 100,000,000 shares authorized, 7,096,390 issued
      and outstanding
                
                
                710
                
                
                
                710Additional
      paid-in capital
                
                
                6,790
                
                
                
                6,790(Deficit)
      accumulated during development stage
                
                
                (115,966
                )
                
                
                (94,649
                )Total
      Stockholders' Equity (Deficit)
                
                
                (108,466
                )
                
                
                (87,149
                )$
                24,034
                
                
                $
                15,351





SEE
ACCOMPANYING FOOTNOTES TO THE FINANCIAL STATEMENTS




2





SRKP
16, INC.


(A
Development Stage Company)


STATEMENTS
OF OPERATIONS


(Unaudited)





Cumulative fromThree Months
                
                
                Three Months
                
                
                Six Months
                
                
                Six Months
                
                
                January 3, 2007Ended
                
                
                Ended
                
                
                Ended
                
                
                Ended
                
                
                (Inception) toJune 30, 2010
                
                
                June 30, 2009
                
                
                June 30, 2010
                
                
                June 30, 2009
                
                
                June 30, 2010REVENUE
                
                $
                —
                
                
                $
                —
                
                
                $
                —
                
                
                $
                —
                
                
                $
                —EXPENSES
                
                
                5,120
                
                
                
                3,437
                
                
                
                21,317
                
                
                
                15,551
                
                
                
                115,966NET
      (LOSS)
                
                $
                (5,120
                )
                
                $
                (3,437
                )
                
                $
                (21,317
                )
                
                $
                (15,551
                )
                
                $
                (115,966
                )NET
      (LOSS) PER COMMON SHARE-BASIC
                
                
                *
                
                
                
                *
                
                
                
                *
                
                
                
                *WEIGHTED
      AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
                
                
                7,096,390
                
                
                
                7,096,390
                
                
                
                7,096,390
                
                
                
                7,096,390





*Less than
$.01





SEE
ACCOMPANYING FOOTNOTES TO THE FINANCIAL STATEMENTS




3





SRKP
16, INC.


(A
Development Stage Company)


STATEMENTS
OF CASH FLOWS


(Unaudited)





Cumulative fromSix Months
                
                
                Six Months
                
                
                January 3, 2007Ended
                
                
                Ended
                
                
                (Inception) toJune 30, 2010
                
                
                June 30, 2009
                
                
                June 30, 2010CASH
      FLOWS (TO) OPERATING ACTIVITIES:Net
      (loss)
                
                $
                (21,317
                )
                
                $
                (15,551
                )
                
                $
                (115,966
                )Net
      Cash (Used In) Operating Activities
                
                
                (21,317
                )
                
                
                (15,551
                )
                
                
                (115,966
                )CASH
      FLOWS FROM FINANCING ACTIVITIES:Common
      stock issued for cash
                
                
                -
                
                
                
                -
                
                
                
                5,000Warrants
      issued for cash
                
                
                -
                
                
                
                -
                
                
                
                2,500Advances
      from stockholders
                
                
                30,000
                
                
                
                -
                
                
                
                132,500Net
      Cash Provided by Financing Activities
                
                
                30,000
                
                
                
                -
                
                
                
                140,000NET
      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:
                
                
                8,683
                
                
                
                (15,551
                )
                
                
                24,034CASH
      AND CASH EQUIVALENTS, BEGINNING OF PERIOD
                
                
                15,351
                
                
                
                17,503
                
                
                
                -CASH
      AND CASH EQUIVALENTS, END OF PERIOD
                
                $
                24,034
                
                
                $
                1,952
                
                
                $
                24,034





SEE
ACCOMPANYING FOOTNOTES TO THE FINANCIAL STATEMENTS




4





SRKP 16,
INC.


(A Development Stage
Company)


NOTES TO FINANCIAL
STATEMENTS





NOTE
1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





History


SRKP 16,
Inc. (the Company), a development stage company, was incorporated under the laws
of the State of Delaware on December 7, 2006.  There was no activity
during 2006 and no equity was issued. The common stock of the Company was sold
and issued on January 3, 2007 and as such has been used as the date of inception
for the Company. The Company is in the development stage as defined in Financial
Accounting Standards Board Accounting Standards Codification ("ASC") Topic 915
"Development Stage Entities".  The fiscal year end is December
31.





The
Company filed a Form 10-SB registration statement with the Securities and
Exchange Commission (SEC) pursuant to Section 12(g) of the Securities Exchange
Act of 1934. The registration statement has been declared effective as of
January 25, 2008.





Going Concern and Plan of
Operation


The
Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business.  The Company is in
the development stage and has negative working capital, negative stockholders’
equity and has not earned any revenues from operations to date. These conditions
raise substantial doubt about its ability to continue as a going
concern.





The
Company is currently devoting its efforts to locating merger
candidates.  The Company's ability to continue as a going concern is
dependent upon its ability to develop additional sources of capital, locate and
complete a merger with another company, and ultimately, achieve profitable
operations. The accompanying financial statements do not include any adjustments
that might result from the outcome of these uncertainties.





Income
Taxes


In
accordance with ASC Topic 740, Accounting for Income Taxes, the Company accounts
for income taxes under the liability method of accounting for income
taxes.  Under this method, deferred income taxes are recorded to reflect
the tax consequences in future years of temporary differences between the tax
basis of the assets and liabilities and their financial amounts at
year-end.





For federal income tax purposes,
substantially all startup and organizational expenses must be deferred until the
Company commences business.  The Company may elect a limited deduction of
up to $5,000 in the taxable year in which the trade or business begins. 
The $5,000 must be reduced by the amount of startup costs in excess of
$50,000.  The remainder of the expenses not deductible must be amortized
over a 180-month period beginning with the month in which the active trade or
business begins.  These expenses will not be deducted for tax purposes and
will represent a deferred tax asset.  The Company will provide a valuation
allowance in the full amount of the deferred tax asset since there is no
assurance of future taxable income.  Tax deductible losses can be carried
forward for 20 years until utilized.


5





SRKP 16,
INC.


(A Development Stage
Company)


NOTES TO FINANCIAL
STATEMENTS





NOTE
1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)





Deferred Offering
Costs


Deferred
offering costs, consisting of legal, accounting and filing fees relating to an
offering will be capitalized. The deferred offering costs will be offset against
offering proceeds in the event the offering is successful. In the event the
offering is unsuccessful or is abandoned, the deferred offering costs will be
expensed.





Cash and Cash
Equivalents


Cash and
cash equivalents consist primarily of cash in banks and highly liquid
investments with original maturities of 90 days or less.





Concentrations of Credit
Risk


The
Company maintains all cash in deposit accounts, which at times may exceed
federally insured limits.  The Company has not experienced a loss in
such accounts.





Earnings per Common
Share


Basic
earnings per common share are computed based upon the weighted average number of
common shares outstanding during the period.  Diluted earnings per
share consists of the weighted average number of common shares outstanding plus
the dilutive effects of options and warrants calculated using the treasury stock
method.  In loss periods, dilutive common equivalent shares are
excluded as the effect would be anti-dilutive.





At June
30, 2010 and 2009, the only potential dilutive securities were 7,096,390
common stock warrants. Due to the net loss, none of the potentially dilutive
securities were included in the calculation of diluted earnings per share since
their effect would be anti-dilutive.





Use of Estimates in the
Preparation of Financial Statements


The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates and assumptions.





Recently Issued Accounting
Pronouncements


The
Company has adopted all recently issued accounting
pronouncements.  The adoption of the accounting pronouncements,
including those not yet effective, is not anticipated to have a material effect
on the financial position or results of operations of the Company.





NOTE
2 - STOCKHOLDERS' EQUITY





During
January 2007, the Company sold for $5,000 for a subscription receivable, paid in
April 2007, 7,096,390 shares of its $.0001 par value common stock to various
investors. In addition, the Company also sold to these investors for $2,500 cash
warrants to purchase 7,096,390 shares of common stock at an exercise price of
$.0001.  These warrants expire at the earlier date of 10 years from
date of purchase or 5 years from the date the Company consummates a merger or
other business combination with an operating business or any other event to
which the Company ceases to be a “shell company.”




6




SRKP 16,
INC.


(A Development Stage
Company)


NOTES TO FINANCIAL
STATEMENTS





NOTE
3 - RELATED PARTY TRANSACTIONS





The
Company neither owns nor leases any real or personal property. Most office
services are provided at a charge by WestPark Capital.  For the six months
ended June 30, 2010 and 2009 the Company incurred costs of $6,000 and $1,000 for
these services, respectively.  The Company’s President is also the
Chief Executive Officer of WestPark Capital. Such costs are material to the
financial statements. The officers and directors of the Company are involved in
other business activities and may, in the future, become involved in other
business opportunities that become available.  Such persons may face a
conflict in selecting between the Company and their other business interests.
The Company has not formulated a policy for the resolution of such
conflicts.





NOTE
4 - DUE TO STOCKHOLDERS





Since
inception certain stockholders have advanced the Company $132,500 to pay for
operating expenses. These funds have been advanced interest free, are unsecured,
and are due on demand.


7





Item
2.  Management’s Discussion and Analysis of Financial Condition and
Results of Operations.





Forward
Looking Statement Notice





Certain
statements made in this Quarterly Report on Form 10-Q are “forward-looking
statements” (within the meaning of the Private Securities Litigation Reform Act
of 1995) regarding the plans and objectives of management for future operations.
Such statements involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements of SRKP 16, Inc.
(“we”, “us”, “our” or the “Company”) to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. The forward-looking statements included herein are
based on current expectations that involve numerous risks and uncertainties. The
Company's plans and objectives are based, in part, on assumptions involving the
continued expansion of business. Assumptions relating to the foregoing involve
judgments with respect to, among other things, future economic, competitive and
market conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond the control of the
Company. Although the Company believes its assumptions underlying the
forward-looking statements are reasonable, any of the assumptions could prove
inaccurate and, therefore, there can be no assurance the forward-looking
statements included in this Quarterly Report will prove to be accurate. In light
of the significant uncertainties inherent in the forward-looking statements
included herein, the inclusion of such information should not be regarded as a
representation by the Company or any other person that the objectives and plans
of the Company will be achieved.





Description
of Business





The
Company was incorporated in the State of Delaware on December 7, 2006 and
maintains its principal executive office at 4737 North Ocean Drive, Suite 207,
Lauderdale by the Sea, FL 33308.  Since inception, the Company has
been engaged in organizational efforts and obtaining initial financing. The
Company was formed as a vehicle to pursue a business combination through the
acquisition of, or merger with, an operating business. The Company filed a
registration statement on Form 10-SB with the U.S. Securities and Exchange
Commission (the “SEC”) on November 26, 2007, and since its effectiveness, the
Company has focused its efforts to identify a possible business
combination





The Company is currently considered to
be a “blank check” company. The SEC defines those companies as "any development
stage company that is issuing a penny stock, within the meaning of Section
3(a)(51) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”),and that has
no specific business plan or purpose, or has indicated that its business plan is
to merge with an unidentified company or companies." Many states have enacted
statutes, rules and regulations limiting the sale of securities of "blank check"
companies in their respective jurisdictions. The Company is also a “shell
company,” defined in Rule 12b-2 under the Exchange Act as a company with no or
nominal assets (other than cash) and no or nominal operations. Management does
not intend to undertake any efforts to cause a market to develop in our
securities, either debt or equity, until we have successfully concluded a
business combination. The Company intends to comply with the periodic reporting
requirements of the Exchange Act for so long as we are subject to those
requirements.





The Company was organized as a vehicle
to investigate and, if such investigation warrants, acquire a target company or
business seeking the perceived advantages of being a publicly held corporation.
The Company’s principal business objective for the next 12 months will be to
complete the transactions contemplated by the Share Exchange.  In the
event the Company does not consummate the transactions contemplated by the Share
Exchange the Company’s principal business objective for the next 12 months and
beyond such time will be to achieve long-term growth potential through a
combination with an operating business. The Company will not restrict its
potential candidate target companies to any specific business, industry or
geographical location and, thus, may acquire any type of business.





The Company currently does not engage
in any business activities that provide cash flow.  During the next
twelve months we anticipate incurring costs related to:


8




(i)         filing
Exchange Act reports, and





(ii)        investigating,
analyzing and consummating an acquisition.





We
believe we will be able to meet these costs through use of funds in our
treasury, through deferral of fees by certain service providers and additional
amounts, as necessary, to be loaned to or invested in us by our stockholders,
management or other investors. Currently, however, our ability to continue as a
going concern is dependent upon our ability to generate future profitable
operations and/or to obtain the necessary financing to meet our obligations and
repay our liabilities arising from normal business operations when they come
due. Our ability to continue as a going concern is also dependent on our ability
to find a suitable target Company and enter into a possible reverse merger with
such Company. Management’s plan includes obtaining additional funds by equity
financing through a reverse merger transaction and/or related party advances,
however there is no assurance of additional funding being
available.





The Company may consider acquiring a
business which has recently commenced operations, is a developing company in
need of additional funds for expansion into new products or markets, is seeking
to develop a new product or service, or is an established business which may be
experiencing financial or operating difficulties and is in need of additional
capital. In the alternative, a business combination may involve the acquisition
of, or merger with, a company which does not need substantial additional capital
but which desires to establish a public trading market for its shares while
avoiding, among other things, the time delays, significant expense, and loss of
voting control which may occur in a public offering.





Since our
Registration Statement on Form 10-SB went effective, our management has had
contact and discussions with representatives of other entities regarding a
business combination with us. Any target business that is not selected, in the
event the Share Exchange is not consummated, may be a financially unstable
company or an entity in its early stages of development or growth, including
entities without established records of sales or earnings. In that event, we
will be subject to numerous risks inherent in the business and operations of
financially unstable and early stage or potential emerging growth companies. In
addition, we may effect a business combination with an entity in an industry
characterized by a high level of risk, and, although our management will
endeavor to evaluate the risks inherent in a particular target business, there
can be no assurance that we will properly ascertain or assess all significant
risks. Our management anticipates that it will likely be able to effect only one
business combination, due primarily to our limited financing and the dilution of
interest for present and prospective stockholders, which is likely to occur as a
result of our management’s plan to offer a controlling interest to a target
business in order to achieve a tax-free reorganization. This lack of
diversification should be considered a substantial risk in investing in us,
because it will not permit us to offset potential losses from one venture
against gains from another.





The Company anticipates that the
selection of a business combination will be complex and extremely risky. Because
of general economic conditions, rapid technological advances being made in some
industries and shortages of available capital, our management believes that
there are numerous firms seeking even the limited additional capital which we
will have and/or the perceived benefits of becoming a publicly traded
corporation. Such perceived benefits of becoming a publicly traded corporation
include, among other things, facilitating or improving the terms on which
additional equity financing may be obtained, providing liquidity for the
principals of and investors in a business, creating a means for providing
incentive stock options or similar benefits to key employees, and offering
greater flexibility in structuring acquisitions, joint ventures and the like
through the issuance of stock. Potentially available business combinations may
occur in many different industries and at various stages of development, all of
which will make the task of comparative investigation and analysis of such
business opportunities extremely difficult and complex.




9




Liquidity
and Capital Resources


As of June 30, 2010, the Company had
assets equal to $24,034 comprised exclusively of cash.  This compares
with assets of $15,351, comprised exclusively of cash, as of December 31,
2009.  The Company’s current liabilities as of June 30, 2010 totaled
$132,500, comprised exclusively of monies due to stockholders.  This
compares to the Company’s current liabilities as of December 31, 2009 of
$102,500, comprised exclusively of monies due to stockholders.The Company
can provide no assurance that it can continue to satisfy its cash requirements
for at least the next twelve months.





The following is a summary of the
Company's cash flows provided by (used in) operating, investing, and financing
activities:





Six Months
                    Ended June 30,
                    2010
                  
                  
                  Six Months
                    Ended June 30,
                    2009
                  
                  
                  For the
                    Cumulative
                    Period from
                    January 3, 2007
                    (Inception) to
                    June 30, 2010Net
      Cash (Used in) Operating Activities
                  
                  $
                  (21,317
                  )
                  
                  $
                  (15,551
                  )
                  
                  $
                  (115,966
                  )Net
      Cash (Used in) Investing Activities
                  
                  $
                  -
                  
                  
                  $
                  -
                  
                  
                  $
                  -Net
      Cash Provided by Financing Activities
                  
                  $
                  30,000
                  
                  
                  $
                  -
                  
                  
                  $
                  140,000Net
      Increase (Decrease) in Cash and Cash Equivalents
                  
                  $
                  8,683
                  
                  
                  $
                  (15,551
                  )
                  
                  $
                  24,034





The
Company has only cash assets and has generated no revenues since inception. The
Company is also dependent upon the receipt of capital investment or other
financing to fund its ongoing operations and to execute its business plan of
seeking a combination with a private operating company. In addition, the Company
is dependent upon certain related parties to provide continued funding and
capital resources. If continued funding and capital resources are unavailable at
reasonable terms, the Company may not be able to implement its plan of
operations.





Results
of Operations





The
Company has not conducted any active operations since inception, except for its
efforts to locate suitable acquisition candidates. No revenue has been
generated by the Company from January 3, 2007 (Inception) through June 30,
2010.  It is unlikely the Company will have any revenues unless it is
able to effect an acquisition or merger with an operating company, of which
there can be no assurance.  It is management's assertion that these
circumstances may hinder the Company's ability to continue as a going
concern.  The Company’s plan of operation for the next twelve months shall
be to continue its efforts to locate suitable acquisition
candidates.





For the
three and six months ended June 30, 2010, the Company had a net loss of $5,120
and $21,317, respectively, comprised of legal, accounting, audit and other
professional service fees incurred in relation to the filing of the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2009 in
January of 2010 and the Company’s Quarterly Report on Form 10-Q for the quarter
ended March 31, 2010, filed in April of 2010. This compares with a net loss of
$3,437 and $15,551 for the three and six months, respectively, ended June 30,
2009, comprised of legal, accounting, audit and other professional service fees
incurred in relation to the filing of the Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2008 in February of 2009 and the
Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009,
filed in April of 2009.





For the
cumulative period from January 3, 2007 (Inception) to June 30, 2010, the Company
had a net loss of $115,966, comprised exclusively of legal, accounting, audit
and other professional service fees incurred in relation to the formation of the
Company, the filing of the Company’s Registration Statement on Form 10-SB in
November of 2007 and the filing of the Company’s Quarterly and Annual Reports on
Form 10-Q and Form 10-K (or Form 10-KSB).




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Off-Balance Sheet
Arrangements





The Company does not have any
off-balance sheet arrangements that have or are reasonably likely to have a
current or future effect on the Company’s financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to
investors.





Contractual
Obligations





As a “smaller reporting company” as
defined by Item 10 of Regulation S-K, the Company is not required to provide
this information.





Item
3.  Quantitative and Qualitative Disclosures About Market
Risk.





As a “smaller reporting company” as
defined by Item 10 of Regulation S-K, the Company is not required to provide
information required by this Item.





Item
4.  Controls and Procedures.





Evaluation
of Disclosure Controls and Procedures





We
maintain disclosure controls and procedures that are designed to ensure that
information required to be disclosed in our reports filed pursuant to the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the SEC’s rules, regulations and related forms, and that
such information is accumulated and communicated to our principal executive
officer and principal financial officer, as appropriate, to allow timely
decisions regarding required disclosure.





As of
June 30, 2010, we carried out an evaluation, under the supervision and with the
participation of our principal executive officer and our principal financial
officer of the effectiveness of the design and operation of our disclosure
controls and procedures. Based on this evaluation, our principal executive
officer and our principal financial officer concluded that our disclosure
controls and procedures were effective as of the end of the period covered by
this report.





Changes
in Internal Controls





There have been no changes in our
internal controls over financial reporting during the quarter ended June 30,
2010 that have materially affected or are reasonably likely to materially affect
our internal controls.





PART II — OTHER
INFORMATION





Item
1.  Legal Proceedings.





To the best knowledge of the officers
and directors, the Company is not a party to any legal proceeding or
litigation.





Item
1A.  Risk Factors.





As a “smaller reporting company” as
defined by Item 10 of Regulation S-K, the Company is not required to provide
information required by this Item.





Item
2.  Unregistered Sales of Equity Securities and Use of
Proceeds.





None.


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Item 3.  Defaults Upon
Senior Securities.





None.





Item
4.  Removed and Reserved.




Item 5.  Other
Information.





None.




Item
6.  Exhibits.





(a)  Exhibits
required by Item 601 of Regulation S-K.





Exhibit No.
              
              Description*3.1
              
              Certificate
      of Incorporation, as filed with the Delaware Secretary of State on January
      3, 2007.*3.2
              
              By-laws.31.1
              
              Certification
      of the Company’s Principal Executive Officer pursuant to Section 302 of
      the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly
      Report on Form 10-Q for the quarter ended June 30,
2010.31.2
              
              Certification
      of the Company’s Principal Financial Officer pursuant to Section 302 of
      the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly
      Report on Form 10-Q for the quarter ended June 30,
2010.32.1
              
              Certification
      of the Company’s Principal Executive Officer pursuant to 18 U.S.C. Section
      1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002.32.2
              
              Certification
      of the Company’s Principal Financial Officer pursuant to 18 U.S.C. Section
      1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002.





*
            Filed
      as an exhibit to the Company's Registration Statement on Form 10-SB, as
      filed with the SEC on November 26, 2007, and incorporated herein by this
      reference.




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SIGNATURES





Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.





SRKP
      16, INC.Dated:
      July 26, 2010
            By:
            /s/ Richard A. RappaportRichard
      A. RappaportPresident
      and DirectorPrincipal
      Executive OfficerDated:
      July 26, 2010
            By:
            /s/ Anthony C.
  PintsopoulosAnthony
      C. PintsopoulosSecretary,
      Chief Financial Officer and DirectorPrincipal
      Accounting OfficerPrincipal
      Financial Officer




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