Summary
Archimedes Tech SPAC Partners Co. is a blank check company with no operating business, and the quarter ended March 31, 2021 shows exactly what that means for an income statement. The company reported a net loss of $84,033 for the three months, driven by an operating loss of $81,441. Diluted loss per share was $2.38 for the quarter. There is no revenue line to discuss because no operating revenue will appear until a business combination closes, at the earliest. The company was formed on September 15, 2020 for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more target businesses. All activity from inception through March 31, 2021 relates to formation, the initial public offering and the hunt for a target. Management intends to focus the search on the technology industry.
The balance sheet changed shape in March. The IPO closed on March 15, 2021 with 12,000,000 public units sold at $10.00 each, generating gross proceeds of $120,000,000. At the same time the company sold 390,000 private units at $10.00 per unit to the sponsor and EarlyBirdCapital in a private placement, raising $3,900,000. On March 19, 2021 the underwriters partially exercised the over-allotment option, adding 1,300,000 public units at $10.00 for $13,000,000 and 26,000 private units at $10.00 for $260,000. A total of $133,000,000 from the net proceeds of the public and private unit sales was placed in the trust account. The company held $963,695 in its operating bank account at March 31, 2021 for working capital.
Cash burn is small, but the operating cash flow line is negative. The company used $185,958 in operating activities during the quarter. Before the IPO, liquidity came from a $25,000 payment from the sponsor for founder shares and a $125,000 unsecured promissory note from the sponsor, which was fully repaid on March 15, 2021. After the IPO and private placement, liquidity needs have been met from private placement proceeds not held in the trust account. No amounts were outstanding under any working capital loans. Management expects working capital and borrowing capacity to be sufficient through the earlier of a business combination or one year from the filing date, covering target identification, due diligence, travel and deal negotiation.
Two structural features carry most of the risk. The company has no operations, so any return depends on finding and closing a suitable acquisition, and no candidate is named in the filing. Public shareholders also hold redemption rights that sit outside the company's control, which is why common stock subject to possible redemption is presented at redemption value as temporary equity rather than inside stockholders' equity. The warrants issued with the IPO, the over-allotment and the private placement are exercisable for 6,858,000 shares and were left out of the diluted share count because their exercise is contingent on future events and inclusion would be anti-dilutive.
The quarter carries no revenue or earnings guidance, and none is possible while the company has no business. What matters for valuation is the size of the trust, the sponsor's stake through founder and private units, the clean off-balance sheet position, and time. No target, no purchase price and no deal timeline are disclosed, so the only stated horizon is the working capital runway of one year from the filing. The filing keeps the standard caution that forward-looking statements are subject to known and unknown risks and that factors which could cause actual results to differ are described in the company's other SEC filings. The company reported no off-balance sheet arrangements as of March 31, 2021. Until a target is named, the search is the story.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2021 | Q4 FY2020 | QoQ | Q1 FY2020 | YoY |
|---|---|---|---|---|---|
| Operating income (loss) | -$81.4K | — | — | — | — |
| Net income (loss) | -$84.0K | — | — | — | — |
Risks
The company has not commenced operations and will not generate operating revenues until after completing an initial Business Combination, at the earliest; all activity through March 31, 2021 related to formation, the IPO, and the search for a target.
As of March 31, 2021, the company had $963,695 in its operating bank account and a net loss of $84,033 for the three months ended March 31, 2021; it relies on Sponsor or affiliate Working Capital Loans for transaction costs, and they are not obligated to provide them.
Summary, forecast, risks and KPIs are extracted from SOUNDHOUND AI, INC.'s SEC filings for Q1 FY2021 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.