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Investcorp Acquisition (IVCA) - 2024 Q2 - Quarterly Report
IVCAInvestcorp Acquisition (IVCA)2024-08-20 20:33

Financial Performance - As of June 30, 2024, the Company had a net income of 1,681,247,downfrom1,681,247, down from 3,532,578 in the same period of 2023, reflecting a decrease of approximately 52.5%[99] - For the six months ended June 30, 2024, the Company reported a net income of 2,015,776,comparedto2,015,776, compared to 5,545,277 for the same period in 2023, indicating a decline of about 63.7%[100] - The Company incurred operating costs of 319,152forthethreemonthsendedJune30,2024,comparedto319,152 for the three months ended June 30, 2024, compared to 520,593 for the same period in 2023, a decrease of approximately 38.7%[99] - The Company has not generated any operating revenues to date and relies on interest income from cash and cash equivalents held after the Initial Public Offering[98] Cash and Shareholder Activity - The Company had cash held in the Trust Account amounting to 111,451,040asofJune30,2024,whichisintendedtobeusedforcompletingaBusinessCombination[105]−Shareholdersredeemed8,314,006ClassAordinarysharesataredemptionpriceofapproximately111,451,040 as of June 30, 2024, which is intended to be used for completing a Business Combination[105] - Shareholders redeemed 8,314,006 Class A ordinary shares at a redemption price of approximately 11.40 per share, totaling an aggregate redemption amount of approximately 94,780,352[93]−AttheExtraordinaryGeneralMeetingonAugust11,2023,shareholdersapprovedanextensionfortheCompanytoconsummateabusinesscombinationuntilAugust12,2024,with16,085,554sharesredeemedatapproximately94,780,352[93] - At the Extraordinary General Meeting on August 11, 2023, shareholders approved an extension for the Company to consummate a business combination until August 12, 2024, with 16,085,554 shares redeemed at approximately 10.74 per share, totaling 172,774,717inredemptionpayments[120]−Followingtheredemption,theCompanyhad9,789,446ClassAordinarysharesoutstanding[120]BusinessCombinationandLiquidation−TheCompanyhasuntilMay12,2025,toconsummateaBusinessCombination,oritwillfacemandatoryliquidation[108]−TheSponsorconverted6,468,749ClassBordinarysharesintoClassAordinarysharesonaone−to−onebasisaspartoftheExtensionAmendmentProposal[93]DebtandFinancing−TheSponsoragreedtoloantheCompanyupto172,774,717 in redemption payments[120] - Following the redemption, the Company had 9,789,446 Class A ordinary shares outstanding[120] Business Combination and Liquidation - The Company has until May 12, 2025, to consummate a Business Combination, or it will face mandatory liquidation[108] - The Sponsor converted 6,468,749 Class B ordinary shares into Class A ordinary shares on a one-to-one basis as part of the Extension Amendment Proposal[93] Debt and Financing - The Sponsor agreed to loan the Company up to 1,200,000 under a non-interest bearing convertible promissory note, with an outstanding principal balance of 1,100,000asofJune30,2024[115]AccountingandReporting−TheCompanyadoptedASU2020−06onJanuary1,2024,whichdidnothaveamaterialimpactonitsfinancialstatements[125]−TheCompanyisclassifiedasan"emerginggrowthcompany"undertheJOBSAct,allowingittodelaytheadoptionofnewaccountingstandards[127]−TheCompanyrecognizeschangesintheredemptionvalueofredeemableordinarysharesimmediately,adjustingthecarryingvalueattheendofeachreportingperiod[121]−TheCompanyevaluatescriticalaccountingestimatesrelatedtofairvalueoffinancialinstrumentsandaccruedexpenses,whichmaydifferfromactualresults[118]−TheCompanyexpectstheadoptionofASU2023−09toresultindisclosurechangesonly,effectiveforfiscal2025[126]IPOandUnderwriting−TheCompanygeneratedgrossproceedsof1,100,000 as of June 30, 2024[115] Accounting and Reporting - The Company adopted ASU 2020-06 on January 1, 2024, which did not have a material impact on its financial statements[125] - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[127] - The Company recognizes changes in the redemption value of redeemable ordinary shares immediately, adjusting the carrying value at the end of each reporting period[121] - The Company evaluates critical accounting estimates related to fair value of financial instruments and accrued expenses, which may differ from actual results[118] - The Company expects the adoption of ASU 2023-09 to result in disclosure changes only, effective for fiscal 2025[126] IPO and Underwriting - The Company generated gross proceeds of 225,000,000 from its Initial Public Offering of 22,500,000 Class A Public Shares at $10.00 per share[102] - The underwriters exercised an overallotment option to purchase an additional 3,375,000 units at the IPO price[117]