Business context and reporting period
Issuer mismatch: The supplied filing is Patricia Acquisition Corp.’s unaudited Form 10-Q for the quarter ended March 31, 2021; it is not a filing by Serve Robotics Inc. Patricia described itself as a blank-check shell company seeking a business combination, with no operating business or revenue. It reported no definitive agreement or specific discussions with potential candidates as of the filing date.
Financial results and liquidity
- Revenue: $0 for the quarter.
- Expenses and earnings: General and administrative expense and net loss were each $16,217. Basic and diluted loss per share was reported as $0.00, rounded, on 5,000,000 weighted-average shares. No margin figures were provided.
- Cash flow: Operating cash use was $17,717; financing provided $12,500 from the stockholder note. Cash decreased $5,217 to $4,221.
- Balance sheet: At March 31, cash and total assets were $4,221; current liabilities were $38,000, including $35,000 due under a non-interest-bearing stockholder note and $3,000 of accounts payable. Working capital and stockholders’ equity were each negative $33,779. No other debt or liquidity facilities were reported.
Changes, outlook and risks
Compared with the stated December 31, 2020 balances, cash declined from $9,438 to $4,221, current liabilities rose from $27,000 to $38,000, and the accumulated deficit increased from $18,062 to $34,279. The filing reports no comparable prior-year quarterly operating results.
Management planned to continue searching for a target and expected to fund operations through further stockholder borrowing and/or investment, but stated there was no assurance funding would be available. Management said losses, negative working capital and stockholders’ deficit raised substantial doubt about the company’s ability to continue as a going concern over the following 12 months. The stockholder had no obligation to advance additional funds. The note is repayable upon a business combination; interest is generally not charged unless default occurs, after which an 18% rate applies under the terms described. COVID-19 was cited as a potential impediment to finding and completing a business combination. No revenue, earnings, or transaction guidance was provided.
The company reported no material pending legal proceedings, no material off-balance-sheet arrangements, and no material changes in internal control over financial reporting; management concluded disclosure controls were effective.
Important facts to verify
- Confirm the issuer: this document identifies Patricia Acquisition Corp., not Serve Robotics Inc.
- Check the balance-sheet comparison date: one table labels it December 31, 2021, while the financial statements and notes indicate December 31, 2020.
- Verify the stockholder note balance, repayment terms, and availability of any further advances, given the going-concern warning and limited cash.
- Confirm whether a subsequent business combination or other financing occurred after the May 17, 2021 filing date.