Financial Performance - As of March 31, 2023, the company reported a net loss of $654,261, which included a gain of $169,250 from the change in fair value of warrant liabilities and interest income of $68,327 from the Trust Account[69][297]. - The company reported a net income of $3,788,224 for the year ended December 31, 2022[301]. - For the year ended December 31, 2022, cash used in operating activities was $3,022,729, influenced by a change in fair value of warrant liabilities amounting to $5,923,750[301]. Cash and Operating Activities - The total cash used in operating activities for the three months ended March 31, 2023, was $586,560[69]. - The company incurred operating and formation costs of $890,129 for the three months ended March 31, 2023[297]. - The company has a total of $116,725,000 placed in the Trust Account after the Initial Public Offering, with transaction costs amounting to $4,099,907[67]. Debt and Financial Obligations - The outstanding amount under the Promissory Note as of March 31, 2023, was $3,806,468, which includes $3,410,209 for direct working capital and $396,259 for monthly SPAC extension payments[70]. - The company has no long-term debt or capital lease obligations, only a monthly fee of $5,000 for office space and administrative services[73]. - The company plans to address its financial obligations through a Business Combination or obtaining Working Capital Loans, although there is no assurance of success[71]. Warrants and Fair Value - The fair value of Public Warrants as of March 31, 2023, was $690,000, while the fair value of Private Placement Warrants was $325,500[293]. Business Combination and Extensions - The company’s stockholders approved an extension for the completion of a business combination up to six times for an additional one month each, potentially extending the deadline to March 26, 2023[300]. - The company executed multiple one-month extensions for the business combination, with the first extension costing $59,157 deposited into the Trust Account[300]. - The company received a loan of $1,150,000 from the Sponsor to extend the deadline for a business combination to February 25, 2022[302]. Accounting and Reporting - The company is in the process of evaluating the impact of the new accounting standard ASU 2020-06, effective January 1, 2024, but does not expect significant changes to its financial statements[76]. - The company has identified critical accounting policies that may lead to material differences from estimates in financial reporting[305]. Initial Public Offering - The company completed its Initial Public Offering on November 25, 2020, raising gross proceeds of $115 million from the sale of 11,500,000 Units at $10.00 per Unit[299]. - As of March 31, 2023, the company had no off-balance sheet arrangements[304].
Breeze Acquisition (BREZ) - 2023 Q1 - Quarterly Report