Filing identity and period
The supplied Form 10-Q is for Patricia Acquisition Corp., a blank-check shell company, for the quarter ended September 30, 2022. It is not a filing for Serve Robotics Inc.; it contains no Serve Robotics operating or financial information. The filing describes a search for a business-combination target and states that no definitive agreement or specific candidate discussions were in place as of the filing date.
Financial results and condition
- Revenue: $0 for the three and nine months ended September 30, 2022 and the comparable 2021 periods.
- Net loss: $13,405 for Q3 2022 versus $14,720 in Q3 2021; $40,483 for the first nine months of 2022 versus $45,221 in 2021. Losses were primarily general and administrative and professional-service expenses.
- Cash and liquidity: Cash was $1,268 at September 30, 2022, versus $271 at December 31, 2021. Current liabilities were $113,940, including $103,940 owed under a stockholder note; working capital was negative $112,672.
- Cash flows: For the first nine months of 2022, operating activities used $37,983 and financing provided $38,980. The cash-flow statement reports a $997 increase in cash.
- Debt: The stockholder note is repayable upon a business combination or specified transaction. It does not bear interest absent default; following default, interest accrues at 18% annually beginning five days after the default date.
- Margins: Not meaningful, as the company had no revenue.
Changes, outlook, and risks
Year-over-year losses narrowed modestly. Management planned to continue seeking an acquisition and expected to rely on further stockholder advances or other financing. The stockholder is not obligated to provide additional advances, and the company gave no assurance that funding would be available. Management concluded that substantial doubt existed about the company’s ability to continue as a going concern over the next 12 months.
Risks include the lack of operating revenue, minimal cash, substantial liabilities, dependence on related-party financing, inability to find or complete a suitable business combination, and potential adverse effects of COVID-19 disruptions. The filing reports no material pending legal proceedings and no off-balance-sheet arrangements. Management stated that disclosure controls were effective and that there were no material changes in internal control over financial reporting during the quarter.
Important facts to verify
- Confirm the intended issuer: this filing identifies Patricia Acquisition Corp., not Serve Robotics Inc.
- Reconcile the cash movement: the cash-flow statement reports a $997 increase, while the MD&A liquidity summary labels $1,268 as the net change in cash; $1,268 is also the ending cash balance.
- Review the stockholder note terms and whether additional financing was actually available after the reporting date.
- For Serve Robotics financials or outlook, obtain the correct issuer’s filing; this document provides none.