Filing summary
Entity and period: This filing is Patricia Acquisition Corp.’s unaudited Form 10-Q for the quarter ended March 31, 2022. Although the request identifies Serve Robotics Inc., the filing text names Patricia Acquisition Corp. throughout; it does not provide Serve Robotics’ financial results.
Business context
Patricia describes itself as a blank-check shell company formed to seek a business combination. It reported no active operating business or revenue and said it had no definitive agreement or specific discussions with potential combination candidates as of the filing date.
Financial results and liquidity
| Metric | Q1 2022 | Q1 2021 or comparison |
|---|---|---|
| Revenue | $0 | $0 |
| General and administrative expenses | $7,888 | $16,217 |
| Net loss | $7,888 | $16,217 |
| Cash used in operating activities | $9,388 | $17,717 |
| Financing proceeds from stockholder note | $9,980 | $12,500 |
| Cash at period end | $863 | $271 at Dec. 31, 2021; $4,221 at Mar. 31, 2021 |
At March 31, 2022, total assets were $863, current liabilities were $80,940, and the stockholder note payable was $74,940. Stockholders’ deficit was $80,077, including accumulated deficit of $80,577. The note is non-interest-bearing except following an event of default, when an 18% annual rate applies under the described terms. No margin measure is meaningful because the company had no revenue.
Changes, outlook, and risks
Year-over-year net loss narrowed by $8,329, while operating cash use decreased by $8,329. Cash increased by $592 during Q1 2022, largely funded by additional stockholder borrowing. Accounts payable declined by $1,500 from year-end, while the stockholder note increased by $9,980.
Management said it expects to fund operations through further advances under the existing note, but the stockholder has no obligation to provide additional funds. The filing states that substantial doubt exists about the company’s ability to continue as a going concern over the following 12 months. Management also cited the need to find a suitable combination and uncertainty about obtaining financing. COVID-19-related disruption could hinder the search or transaction process. No guidance or operating forecast was provided.
The company reported no material pending legal proceedings, no off-balance-sheet arrangements, and no material changes to internal control over financial reporting during the quarter. Management concluded disclosure controls were effective as of quarter-end.
Investor facts to verify
- Confirm the intended issuer: the supplied filing is for Patricia Acquisition Corp., not Serve Robotics Inc.
- Verify the company’s shell-company status and whether any business-combination agreement or candidate discussions arose after the filing.
- Assess the going-concern warning, cash of $863, and dependence on discretionary related-party advances.
- Review the stockholder note’s repayment trigger, balance, and default interest provisions.