MALO HOLDINGS CORPORATION
CONDENSED BALANCE SHEETS
| September 30, 2020 | December 31, 2019 |
| (Unaudited) |
| ASSETS |
| Current assets |
| Cash | $ | 3,956 | $ | 224 |
| Total current assets | 3,956 | 224 |
| Total assets | $ | 3,956 | $ | 224 |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT |
| Current liabilities |
| Accounts payable and accrued expenses | $ | 13,010 | $ | 3,173 |
| Note payable - stockholder | 98,010 | 65,510 |
| Total current liabilities | 111,020 | 68,683 |
| Total liabilities | 111,020 | 68,683 |
| Commitments and contingencies |
| Stockholders’ deficit |
| Preferred stock, $.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding | - | - |
| Common stock, $.0001 par value, 50,000,000 shares authorized, 5,000,000 shares issued and outstanding | 500 | 500 |
| Accumulated deficit | (107,564 | ) | (68,959 | ) |
| Total stockholders’ deficit | (107,064 | ) | (68,459 | ) |
| Total liabilities and stockholders’ deficit | $ | 3,956 | $ | 224 |

See accompanying notes to condensed financial statements
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MALO HOLDINGS CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
| For the three months ended | For the three months ended | For the nine months ended | For the nine months ended |
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| Revenue | $ | - | $ | - | $ | - | $ | - |
| General and administrative expenses | 16,964 | 7,862 | 34,767 | 23,356 |
| Loss from operations | (16,964 | ) | (7,862 | ) | (34,767 | ) | (23,356 | ) |
| Other expense |
| Interest expense | 1,458 | 854 | 3,838 | 2,197 |
| Net loss | $ | (18,422 | ) | $ | (8,716 | ) | $ | (38,605 | ) | $ | (25,553 | ) |
| Loss per common share - basic and dilutive | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) |
| Weighted average common shares outstanding - basic and dilutive | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 |

See accompanying notes to condensed financial statements
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MALO HOLDINGS CORPORATION
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ (DEFICIT)
(Unaudited)
For the Nine months Ended September 30, 2020
| Preferred Stock | Common Stock | Accumulated | Stockholders’ |
| Shares | Amount | Shares | Amount | Deficit | (Deficit) |
| Balance, December 31, 2019 | - | $ | - | 5,000,000 | $ | 500 | $ | (68,959 | ) | $ | (68,459 | ) |
| Net loss | - | $ | - | - | $ | - | $ | (38,605 | ) | $ | (38,605 | ) |
| Balance, September 30, 2020 | - | $ | - | 5,000,000 | $ | 500 | $ | (107,564 | ) | $ | (107,064 | ) |

See accompanying notes to condensed financial statements
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MALO HOLDINGS CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
| For the nine months ended | For the nine months ended |
| September 30, 2020 | September 30, 2019 |
| (Unaudited) | (Unaudited) |
| Cash flows from operating activities: |
| Net loss | $ | (38,605 | ) | $ | (25,553 | ) |
| Adjustments to reconcile net loss to net cash (used in) operating activities: |
| Increase in accounts payable and accrued expenses | 9,837 | 2,197 |
| Net cash (used in) operating activities | (28,768 | ) | (23,356 | ) |
| Cash flow from financing activities: |
| Proceeds from the sale of common stock | - | 25 |
| Proceeds from note payable - stockholder | 32,500 | 23,485 |
| Net cash provided by financing activities | 32,500 | 23,510 |
| Net change in cash | 3,732 | 154 |
| Cash, beginning of period | 224 | - |
| Cash, end of period | $ | 3,956 | $ | 154 |

See accompanying notes to condensed financial statements
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MALO HOLDINGS CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 2020
Note 1 – Nature of Operations
Malo Holdings Corporation (the “Company”) was incorporated in the State of Delaware on December 27, 2018 with the objective to acquire, or merge with, an operating business.
The Company was organized as a vehicle to investigate and, if such investigation warrants, acquire a target company or business seeking the perceived advantages of being a publicly traded corporation. The Company’s principal business objective is to achieve long-term growth potential through a combination with a business, rather than immediate short-term earnings. The Company will not restrict its potential target companies to any specific business, industry, or geographical location. The analysis of business opportunities will be undertaken by, or under the supervision of, the officer and directors of the Company.
Note 2 – Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Form 10-K filed with the SEC on March 30, 2020. The balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by GAAP. In the opinion of management, all adjustments for a fair presentation of the results of operations and financial position for the interim period presented have been included. All such adjustments are of a normal recurring nature. Interim results are not necessarily indicative of the results for a full year.
Emerging Growth Company
The Company is an “emerging growth company” and has elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows the Company to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies.
Recent Accounting Pronouncements
Management does not believe that any recently issued yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed financial statements.
Note 3 – Income Taxes
As of September 30, 2020, the Company has net operating loss carryforwards of approximately $108,000, to reduce future federal and state taxable income through 2040, which results in a deferred tax asset of approximately $22,600 against which a full valuation allowance has been recorded.
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The provision for income taxes is as follows:
| For the Nine Months Ended September 30, 2020 | For the Nine Months Ended September 30, 2019 |
| Current expense: |
| Federal | $ | - | $ | - |
| Deferred tax benefit: | - | - |
| Federal | 8,100 | 5,400 |
| Valuation allowance | (8,100 | ) | (5,400 | ) |
| Total | $ | - | $ | - |

As of September 30, 2020, there is no provision for federal income taxes because we have historically incurred operating losses and we maintain a full valuation allowance against our net deferred tax asset.
The differences between our effective income tax rate and the U.S. federal income tax rate is as follows:
| For the Nine Months Ended September 30, 2020 | For the Nine Months Ended September 30, 2019 |
| Statutory federal income tax rates | 21 | % | 21 | % |
| Valuation allowance | -21 | % | -21 | % |
| Effective tax rate | - | - |

Pursuant to Section 382 of the Internal Revenue Code of 1986, the annual utilization of a company’s net operating loss carryforwards could be limited if the Company experiences a change in ownership of more than 50 percentage points within a three-year period. An ownership change occurs with respect to a corporation if it is a loss corporation on a testing date and, immediately after the close of the testing date, the percentage of stock of the corporation owned by one or more five-percent stockholders has increased by more than 50 percentage points over the lowest percentage of stock of such corporation owned by such stockholders at any time during the testing period.
As of September 30, 2020, the Company has not had any ownership changes that may limit the use of the Company’s net operating loss carryforwards.
The Company currently has no federal or state tax examinations in progress nor has it had any federal or state examinations since its inception. All of the Company’s tax years are subject to federal and state tax examination.
Note 4 – Common Stock
As of September 30, 2020, the Company had 50,000,000 shares of common stock, par value of $0.0001, authorized and has issued 5,000,000 shares of common stock for $500 to the founders of the Company.
Note 5 – Preferred Stock
As of September 30, 2020, the Company had 5,000,000 shares of preferred stock, par value of $.0001, authorized, none issued or outstanding.
Note 6 – Commitments and Related Party Transactions
Office Space
As of September 30, 2020, the Company’s office facilities are located in Boca Raton, Florida. Such facilities are leased by the sole officer and a stockholder of the Company and used by the Company at no charge.
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Note Payable - Stockholder
On December 27, 2018, the Company issued a promissory note (the “Note”) to a stockholder of the Company pursuant to which the Company agreed to repay the sum of any and all amounts advanced to the Company, on or before the date that the Company consummates a business combination with a private company or reverse takeover transaction or other transaction after which the Company would cease to be a shell company. Interest shall accrue on the outstanding principal amount of the Note on the basis of a 360-day year from the date of borrowing until paid in full at the rate of six percent (6%) per annum.
As of September 30, 2020, the total amount due under the Note was $105,021, including accrued interest of $7,011, which is reported as a component of accounts payable and accrued expenses in the accompanying condensed balance sheets.
Note 7 – Going Concern
The accompanying condensed interim financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business.
As of September 30, 2020, the Company has incurred losses from inception of approximately $108,000 and has negative working capital of approximately $107,000. Management believes these conditions raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the date these condensed financial statements are issued. Management intends to finance operations over the next twelve months through additional borrowings from the existing Note.
Note 8 – COVID-19
On March 11, 2020, the World Health Organization officially declared the outbreak of the novel coronavirus COVID-19 a “pandemic.” A significant outbreak of COVID-19 and other infectious diseases has resulted in a widespread health crisis that has significantly adversely affected businesses of all types, economies and financial markets worldwide. The business of any potential target business with which the Company consummates a business combination could be materially and adversely affected. Furthermore, the Company may be unable to complete a business combination if continued concerns relating to COVID-19 restrict travel, limit the ability to have meetings with potential investors or the target company’s personnel, vendors and services providers are unavailable to negotiate and consummate a transaction in a timely manner. The extent to which COVID-19 impacts our search for a business combination will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions posed by COVID-19 or other matters of global concern continue for an extended period of time, the Company’s ability to consummate a business combination, or the operations of a target business with which the Company ultimately consummates a business combination, may be materially adversely affected.
Note 9 – Proposed Merger Agreement
On September 21, 2020, the Company filed with the SEC a Schedule 14F-1 Information Statement relating to an anticipated change in the composition of its board of directors that is expected to occur in connection with a proposed merger to be completed by and among the Company, a recently formed wholly-owned subsidiary of the Company (“Merger Sub”), and Augmedix, Inc., a Delaware corporation (“Augmedix”), pursuant to which Merger Sub would merge with and into Augmedix, with Augmedix continuing as the surviving entity (the “Merger”) and as the Company’s wholly-owned subsidiary, after which the Company would continue the business of Augmedix. The Merger would occur pursuant to an Agreement and Plan of Merger and Reorganization expected to be entered into by and among the Company, Augmedix and Merger Sub (the “Merger Agreement”).
Augmedix is a provider of remote medical documentation and live clinical support services with a mission to rehumanize the clinician-patient relationship so that doctors can focus on what they do best — patient care. The company is headquartered in San Francisco, California.
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Pursuant to the terms of the proposed Merger Agreement, it is expected that all outstanding equity interests of Augmedix will be converted into shares of our Common Stock, such that the holders of Augmedix equity before the proposed Merger will own approximately 88% of the outstanding shares of our Common Stock after the Merger (before giving effect to a potential private placement offering of Common Stock by the Company that we expect will be consummated simultaneously with or immediately after the proposed Merger), resulting in a change of control of the Company. Completion of a private placement financing is expected to be a condition to completion of the Merger.
Certain other information regarding the proposed Merger and proposed changes to the management and share ownership of the Company is set forth in the Schedule 14F-1.
The foregoing description of the proposed Merger Agreement and potential Common Stock private placement and related matters does not purport to be complete and is qualified in its entirety by the terms of the actual Merger Agreement and of terms and documentation for a private placement, none of which has yet been completed and executed. The proposed Merger is expected to be subject to satisfaction of a number of other conditions precedent, and there can be no assurance that the Merger Agreement will be signed or that the Merger or Common Stock private placement will be consummated or other such conditions satisfied. If and when the Merger Agreement is signed, it will be further described in and filed by the Company with the SEC as an exhibit to a Current Report on Form 8-K. If and when a Common Stock private placement is consummated, it will be further described in, and material agreements relating thereto will be filed by the Company with the SEC as exhibits to a Current Report on Form 8-K.
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Overview of our Business
Malo Holdings Corporation was incorporated in the State of Delaware on December 27, 2018. Since inception, the Company has been engaged in organizational efforts and obtaining initial financing. The Company was formed as a vehicle to pursue a business combination through the acquisition of, or merger with, an operating business. The Company filed a registration statement on Form 10 with the U.S. Securities and Exchange Commission (the “SEC”) on March 14, 2019, and since its effectiveness, the Company has focused its efforts to identify a possible business combination.
The Company is currently considered to be a “blank check” company. The SEC defines those companies as “any development stage company that is issuing a penny stock, within the meaning of Section 3(a)(51) of the Exchange Act, and that has no specific business plan or purpose, or has indicated that its business plan is to merge with an unidentified company or companies.” Many states have enacted statutes, rules and regulations limiting the sale of securities of “blank check” companies in their respective jurisdictions. The Company is also a “shell company,” defined in Rule 12b-2 under the Exchange Act as a company with no or nominal assets (other than cash) and no or nominal operations. Management does not intend to undertake any efforts to cause a market to develop in our securities, either debt or equity, until we have successfully concluded a business combination. The Company intends to comply with the periodic reporting requirements of the Exchange Act for so long as we are subject to those requirements.
In addition, the Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of section 404(b) of the Sarbanes-Oxley Act, and exemptions from the requirements of Sections 14A(a) and (b) of the Exchange Act to hold a nonbinding advisory vote of shareholders on executive compensation and any golden parachute payments not previously approved.
The Company has also elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.
We will remain an “emerging growth company” until the earliest of (1) the last day of the fiscal year during which our revenues exceed $1.07 billion, (2) the date on which we issue more than $1 billion in non-convertible debt in a three year period, (3) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our common equity securities pursuant to an effective registration statement filed pursuant to the Securities Act, or (4) when the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter. To the extent that we continue to qualify as a “smaller reporting company,” as such term is defined in Rule 12b-2 under the Exchange Act, after we cease to qualify as an emerging growth company, certain of the exemptions available to us as an emerging growth company may continue to be available to us as a smaller reporting company, including: (1) not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (2) scaled executive compensation disclosures; and (3) the requirement to provide only two years of audited financial statements, instead of three years.
The Company was organized as a vehicle to investigate and, if such investigation warrants, acquire a target company or business seeking the perceived advantages of being a publicly held corporation. The Company’s principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination with an operating business. The Company will not restrict its potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.
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The Company currently does not engage in any business activities that provide cash flow. During the next twelve months we anticipate incurring costs related to:
(i) filing Exchange Act reports, and
(ii) investigating, analyzing and consummating an acquisition.
We believe we will be able to meet these costs through use of funds to be loaned by or invested in us by our stockholders, management or other investors. As of September 30, 2020, the Company had $8,344 in cash. There are no assurances that the Company will be able to secure any additional funding as needed. Currently, however, our ability to continue as a going concern is dependent upon our ability to generate future profitable operations and/or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. Our ability to continue as a going concern is also dependent on our ability to find a suitable target company and enter into a possible reverse merger with such company. Management’s plan includes obtaining additional funds by equity financing through a reverse merger transaction and/or related party advances, however, there is no assurance of additional funding being available.
The Company may consider acquiring a business that has recently commenced operations, is a developing company in need of additional funds for expansion into new products or markets, is seeking to develop a new product or service, or is an established business which may be experiencing financial or operating difficulties and is in need of additional capital. In the alternative, a business combination may involve the acquisition of, or merger with, a company which does not need substantial additional capital but which desires to establish a public trading market for its shares while avoiding, among other things, the time delays, significant expense, and loss of voting control which may occur in a public offering.
Any target business that is selected may be a financially unstable company or an entity in its early stages of development or growth, including entities without established records of sales or earnings. In that event, we will be subject to numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. In addition, we may effect a business combination with an entity in an industry characterized by a high level of risk, and, although our management will endeavor to evaluate the risks inherent in a particular target business, there can be no assurance that we will properly ascertain or assess all significant risks. Our management anticipates that it will likely be able to effect only one business combination, due primarily to our limited financing and the dilution of interest for present and prospective stockholders, which is likely to occur as a result of our management’s plan to offer a controlling interest to a target business in order to achieve a tax-free reorganization. This lack of diversification should be considered a substantial risk in investing in us because it will not permit us to offset potential losses from one venture against gains from another.
The Company anticipates that the selection of a business combination will be complex and extremely risky. Our management believes that there are numerous firms seeking the perceived benefits of becoming a publicly traded corporation. Such perceived benefits of becoming a publicly traded corporation include, among other things, facilitating or improving the terms on which additional equity financing may be obtained, providing liquidity for the principals of and investors in a business, creating a means for providing incentive stock options or similar benefits to key employees, and offering greater flexibility in structuring acquisitions, joint ventures and the like through the issuance of stock. Potentially available business combinations may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.
On March 11, 2020, the World Health Organization officially declared the outbreak of the novel coronavirus COVID-19 a “pandemic.” A significant outbreak of COVID-19 and other infectious diseases has resulted in a widespread health crisis that has significantly adversely affected businesses of all types, economies and financial markets worldwide. The business of any potential target business with which we consummate a business combination could be materially and adversely affected. Furthermore, we may be unable to complete a business combination if continued concerns relating to COVID-19 restrict travel, limit the ability to have meetings with potential investors or the target company’s personnel, vendors and services providers are unavailable to negotiate and consummate a transaction in a timely manner. The extent to which COVID-19 impacts our search for a business combination will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions posed by COVID-19 or other matters of global concern continue for an extended period of time, our ability to consummate a business combination, or the operations of a target business with which we ultimately consummate a business combination, may be materially adversely affected.
10
As of the date of this Form 10-Q, the Company has not entered into any definitive agreement with any party, nor have there been any specific discussions with any potential business combination candidate regarding business opportunities for the Company, except as described below.
Recent Development—Proposed Merger
On September 21, 2020, the Company filed with the SEC, a Schedule 14F-1 Information Statement relating to an anticipated change in the composition of its board of directors that is expected to occur in connection with a proposed merger to be completed by and among the Company, a recently formed wholly-owned subsidiary of the Company (“Merger Sub”), and Augmedix, Inc., a Delaware corporation (“Augmedix”), pursuant to which Merger Sub would merge with and into Augmedix, with Augmedix continuing as the surviving entity (the “Merger”) and as the Company’s wholly-owned subsidiary, after which the Company would continue the business of Augmedix. The Merger would occur pursuant to an Agreement and Plan of Merger and Reorganization expected to be entered into by and among the Company, Augmedix and Merger Sub (the “Merger Agreement”).
Augmedix is a provider of remote medical documentation and live clinical support services with a mission to rehumanize the clinician-patient relationship so that doctors can focus on what they do best — patient care. The company is headquartered in San Francisco, California.
Pursuant to the terms of the proposed Merger Agreement, it is expected that all outstanding equity interests of Augmedix will be converted into shares of our Common Stock, such that the holders of Augmedix equity before the proposed Merger will own approximately 88% of the outstanding shares of our Common Stock after the Merger (before giving effect to a potential private placement offering of Common Stock by the Company that we expect will be consummated simultaneously with or immediately after the proposed Merger), resulting in a change of control of the Company. Completion of a private placement financing is expected to be a condition to completion of the Merger.
Certain other information regarding the proposed Merger and proposed changes to the management and share ownership of the Company is set forth in the Schedule 14F-1.
The foregoing description of the proposed Merger Agreement and potential Common Stock private placement and related matters does not purport to be complete and is qualified in its entirety by the terms of the actual Merger Agreement and of terms and documentation for a private placement, none of which has yet been completed and executed. The proposed Merger is expected to be subject to satisfaction of a number of other conditions precedent, and there can be no assurance that the Merger Agreement will be signed or that the Merger or Common Stock private placement will be consummated or other such conditions satisfied. If and when the Merger Agreement is signed, it will be further described in and filed by the Company with the SEC as an exhibit to a Current Report on Form 8-K. If and when a Common Stock private placement is consummated, it will be further described in, and material agreements relating thereto will be filed by the Company with the SEC as exhibits to a Current Report on Form 8-K.
Liquidity and Capital Resources
As of September 30, 2020, the Company had total assets of $3,956 comprised exclusively of cash. This compares with total assets of $224, comprised exclusively of cash, as of December 31, 2019. The Company’s current liabilities as of September 30, 2020 totaled $111,020 comprised of accounts payable for accounting and review services for the September 30, 2020 SEC filings, accrued interest and the amount due under a note payable to a shareholder. This compares to the Company’s total current liabilities of $68,683, comprised of accrued interest and the amount due under a note payable to a shareholder, as of December 31, 2019. The Company can provide no assurance that it can continue to satisfy its cash requirements for at least the next twelve months.
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The following is a summary of the Company’s cash flows provided by (used in) operating and financing activities for the nine months ended September 30, 2020:
| Nine months ended September 30, 2020 |
| Net Cash (Used In) Operating Activities | $ | (28,768 | ) |
| Net Cash Provided by Financing Activities | $ | 32,500 |
| Net Change in Cash | $ | 3,732 |

The Company has only cash assets and has generated no revenues since inception. The Company is also dependent upon the receipt of capital investment or other financing to fund its ongoing operations and to execute its business plan of seeking a combination with a private operating company. In addition, the Company is dependent upon certain related parties to provide continued funding and capital resources. If continued funding and capital resources are unavailable at reasonable terms, the Company may not be able to implement its plan of operations.
Issuance of Promissory Note to a Stockholder and Director
On December 27, 2018, in connection with advances made in connection with costs incurred by the Company, the Company issued a promissory note to Mark Tompkins, a stockholder and director of the Company, pursuant to which the Company agreed to repay Mr. Tompkins the sum of any and all amounts that Mr. Tompkins may advance to the Company on or before the date that the Company consummates a business combination with a private company or reverse takeover transaction or other transaction after which the Company would cease to be a shell company (as defined in Rule 12b-2 under the Exchange Act). Although Mr. Tompkins has no obligation to advance funds to the Company under the terms of the note, it is anticipated that he may advance funds to the Company as fees and expenses are incurred in the future. As a result, the Company issued the note in anticipation of such advances. Interest shall accrue on the outstanding principal amount of the note on the basis of a 360-day year from the date of borrowing until paid in full at the rate of six percent (6%) per annum. In the event that an Event of Default (as defined in the note) has occurred, the entire note shall automatically become due and payable (the “Default Date”), and starting from five (5) days after the Default Date, the interest rate on the note shall accrue at the rate of eighteen percent (18%) per annum.
As of September 30, 2020, the amount due under the note was $105,020 including accrued interest of $7,010.
Results of Operations
The Company has not conducted any active operations since inception, except for its efforts to locate suitable acquisition candidates. No revenue has been generated by the Company from December 27, 2018 (Inception), through September 30, 2020. It is unlikely the Company will have any revenues unless it is able to effect an acquisition or merger with an operating company, of which there can be no assurance. It is management’s assertion that these circumstances may hinder the Company’s ability to continue as a going concern. The Company’s plan of operation for the next twelve months shall be to continue its efforts to locate suitable acquisition candidates.
For the nine months ended September 30, 2020, the Company had a net loss of $38,605, comprised of legal, accounting, audit and other professional services fees incurred in relation to the preparation and filing of the Company’s SEC filings, general and administrative expenses, and interest expense.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
Contractual Obligations
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.
Emerging Growth Company
As an “emerging growth company” under the JOBS Act, the Company has elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.
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As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.
Disclosure Controls and Procedures
Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this Form 10-Q, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Internal controls are procedures which are designed with the objective of providing reasonable assurance that (1) our transactions are properly authorized, recorded and reported; and (2) our assets are safeguarded against unauthorized or improper use, to permit the preparation of our condensed financial statements in conformity with GAAP.
In connection with the preparation of this Form 10-Q, management, with the participation of our Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)). Based upon that evaluation, our Principal Executive and Financial Officer concluded that, as of the end of the period covered by this Form 10-Q, our disclosure controls and procedures were effective.
Changes in Internal Controls
There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 under the Exchange Act that occurred during the quarter ended September 30, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Limitations of the Effectiveness of Control
A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations of any control system, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected.
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PART II—OTHER INFORMATION
There are no material pending legal proceedings as defined by Item 103 of Regulation S-K, to which we are a party or of which any of our property is the subject, other than ordinary routine litigation incidental to the Company’s business.
There are no proceedings in which any of the directors, officers or affiliates of the Company, or any registered or beneficial holder of more than 5% of the Company’s voting securities, is an adverse party or has a material interest adverse to that of the Company.
As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.
None.
None.
None.
None.
See the Exhibit Index following the signature page to this Form 10-Q for a list of exhibits filed or furnished with this report, which Exhibit Index is incorporated herein by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: October 1, 2020 | MALO HOLDINGS CORPORATION |
| By: | /s/ Ian Jacobs |
| Ian Jacobs Chief Executive Officer, President, Chief Financial Officer, Secretary and Director (principal executive officer and principal financial officer) |

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EXHIBIT INDEX
| Exhibit No. | Description |
| 31.1* | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002 |
| 32.1** | Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 101.INS* | XBRL Instance Document. |
| 101.SCH* | XBRL Taxonomy Extension Schema Document. |
| 101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document. |
| 101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |

| * | Filed herewith. |

| ** | Furnished herewith. |

16

Question: What is the percentage change in the company's Quick Ratio from December 31, 2019 to September 30, 2020 in percentage?

Python solution:
def solution():
    cash_dec = 224
    cash_sep = 3956
    current_liabilities_dec = 68683
    current_liabilities_sep = 111020

    # Calculate Quick Ratio
    quick_ratio_dec = cash_dec/current_liabilities_dec
    quick_ratio_sep = cash_sep/current_liabilities_sep

    # Percentage change in Quick Ratio
    percent_change = ((quick_ratio_sep - quick_ratio_dec)/quick_ratio_dec)*100
    answer = percent_change
    return answer


Answer: 992.5876772525