Docgo Inc. quarterly report, Q3 FY2020

Filing identity and reporting period

Important issuer mismatch: The supplied filing is Motion Acquisition Corp.’s Form 10-Q, not a DocGo Inc. filing. Motion was a newly formed special purpose acquisition company (SPAC); the financial statements cover August 11, 2020 (inception) through September 30, 2020, not a comparable prior-year quarter. The filing describes its target focus inconsistently: connected vehicles in the notes and consumer retail in MD&A.

Financial results and position

MetricReported amount
RevenueNone; the company had not begun operations or generated revenue.
General and administrative expenses / net loss$2,065 / $(2,065)
Net loss per Class B share$(0.00), basic and diluted
Cash and total assets at September 30$1,532 / $114,548
Current liabilities and working capital deficit$91,613 / approximately $90,000
Related-party note payable$71,163 at September 30; repaid October 19, 2020
Operating cash flow, inception to September 30$(2,065)
Financing cash flow, inception to September 30$3,597 net, including $71,163 in related-party note proceeds and $67,566 in offering-cost payments

Margins are not meaningful because there was no revenue. The filing reports no off-balance-sheet arrangements and no market or interest-rate risk at September 30.

Material developments and subsequent events

  • After quarter-end, on October 19, Motion completed an IPO of 11.5 million units at $10 each, raising $115.0 million gross, and a private placement of warrants that raised approximately $3.8 million. The filing says $115.0 million was placed in the trust account; approximately $6.7 million of IPO costs included $4.0 million in deferred underwriting commissions.
  • The underwriter declined its over-allotment option on November 16. A further 431,250 founder shares were forfeited; founder shares were expected to represent 20% of issued and outstanding shares after the IPO. As of November 25, the filing reports 11.5 million Class A and 2.875 million Class B shares outstanding.
  • There is no prior comparable operating period disclosed, so period-over-period changes cannot be assessed.

Outlook, risks, and contingencies

  • Motion had 24 months from the IPO closing, through October 19, 2022, to complete a business combination, absent an approved extension. If it failed, it generally would redeem public shares and liquidate; warrants could expire worthless.
  • Management believed available working capital and borrowing capacity would cover needs through a business combination or one year from the filing. Potential working-capital loans from insiders were discretionary, not committed, and none were outstanding at September 30.
  • The company had no selected target and gave no operating or financial guidance. It warned there was no assurance it would complete a business combination.
  • Management said the COVID-19 impact was not readily determinable; the financial statements included no related adjustments. The $4.0 million deferred underwriting commission was payable only if a business combination closed.
  • Management concluded disclosure controls were effective and reported no material change in internal control over financial reporting during the quarter.

Investor verification points

  • Confirm the intended subject: this filing belongs to Motion Acquisition Corp., not DocGo Inc.
  • Review the issuer’s actual target-sector strategy given the filing’s conflicting connected-vehicle and consumer-retail descriptions.
  • Verify post-quarter IPO proceeds, trust-account balance, offering costs, and the repayment of the related-party note in subsequent filings.
  • Assess founder-share dilution, warrant terms, redemption rights, the business-combination deadline, and the deferred underwriting commission.