Financial Performance - For the three months ended August 31, 2023, the company reported a net income of $553,286, consisting of interest income of $1,009,563 and an unrealized gain of $9,101, offset by operating costs of $465,378[149]. - For the nine months ended August 31, 2023, the company had a net income of $2,358,955, with interest income of $3,687,468 and an unrealized gain of $3,730, against operating costs of $1,332,243[150]. - The company incurred cash used in operating activities of $540,784 for the nine months ended August 31, 2023[155]. - The company has not generated any operating revenues to date and only incurs expenses related to being a public company and due diligence activities[148]. - Cash used in operating activities from December 6, 2021, to August 31, 2022, was $493,906, with a net income of $147,226[156]. Initial Public Offering - The company raised gross proceeds of $115,000,000 from the Initial Public Offering of 11,500,000 Units at $10.00 per Unit, including the full exercise of the over-allotment option[153]. - Following the Initial Public Offering, a total of $117,300,000 was placed in the Trust Account after incurring $5,724,785 in related costs[154]. - A deferred underwriting discount of 3.5% on gross IPO proceeds, totaling $4,025,000, is payable upon completion of the initial Business Combination[164]. Business Combination - The company entered into a Business Combination Agreement with Allrites Holdings Pte Ltd., with an aggregate exchange consideration of 9,200,000 Company Class A Ordinary Shares valued at $92,000,000[138]. - Additional earnout consideration includes 800,000 shares for exceeding $12,000,000 in revenue in the first earnout period and 1,000,000 shares for exceeding $20,000,000 in the second earnout period[139]. - The company has the right to extend the deadline for completing its initial business combination to July 18, 2024, with an aggregate deposit of $150,000 made into the Trust Account for the first three one-month extensions[133]. Shareholder Activity - Shareholders redeemed 8,708,304 Class A ordinary shares for approximately $92,514,424, or about $10.62 per share, during the voting on the NTA Proposal[134]. Financial Position - As of August 31, 2023, the Trust Account held marketable securities totaling $30,012,116, including $1,486,817 of interest income, net of unrealized losses[157]. - The company had cash of $44,746 outside the Trust Account as of August 31, 2023, intended for evaluating target businesses and completing a Business Combination[158]. - The company may need to obtain additional financing to complete a Business Combination or due to potential redemptions of Public Shares, which could involve issuing additional securities or incurring debt[160]. - If additional funds are not raised by July 18, 2023, the company may cease operations except for liquidation purposes[161]. - The company has no off-balance sheet arrangements or long-term liabilities, except for a monthly payment of $20,000 to an affiliate of the Sponsor for administrative support[162][163]. Accounting Policies - The company has not identified any critical accounting policies that could materially affect financial statements[166]. - Management does not anticipate that recently issued accounting pronouncements will have a material effect on the financial statements[167].
Aura FAT Projects Acquisition p(AFAR) - 2023 Q3 - Quarterly Report