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BYTE Acquisition (BYTS) - 2023 Q2 - Quarterly Report
BYTSBYTE Acquisition (BYTS)2023-08-13 16:00

Financial Performance - The company reported a net loss of approximately 657,000forthesixmonthsendedJune30,2023,primarilydueto657,000 for the six months ended June 30, 2023, primarily due to 2.5 million in operational losses and a noncash loss of 1.5millionfromchangesinfairvalueofderivativewarrantliabilities[192].−Forthesameperiodin2022,thecompanyhadanetincomeofapproximately1.5 million from changes in fair value of derivative warrant liabilities [192]. - For the same period in 2022, the company had a net income of approximately 7.2 million, mainly from a noncash gain of 7.4millionrelatedtoderivativewarrantliabilitiesand7.4 million related to derivative warrant liabilities and 455,000 from investments held in the Trust Account [193]. - For the three months ended June 30, 2023, the company reported a net loss of approximately 1.8million,primarilydueto1.8 million, primarily due to 1.9 million in operational losses and a noncash loss of approximately 334,000fromchangesinfairvalueofderivativewarrantliabilities[218].−ForthethreemonthsendedJune30,2022,thecompanyhadanetincomeofapproximately334,000 from changes in fair value of derivative warrant liabilities [218]. - For the three months ended June 30, 2022, the company had a net income of approximately 1.9 million, primarily from a noncash gain of approximately 1.8million[219].TrustAccountandFinancing−AsofMarch16,2023,shareholdersapprovedanextensionforthecompanytocompleteitsinitialbusinesscombinationuntilSeptember25,2023,withapproximately1.8 million [219]. Trust Account and Financing - As of March 16, 2023, shareholders approved an extension for the company to complete its initial business combination until September 25, 2023, with approximately 24.1 million remaining in the Trust Account after redemptions [183]. - The company has placed 323.7millioninatrustaccount,investedinU.S.governmentsecurities,untilthecompletionofabusinesscombination[181].−Theunderwriterswaivedtheirentitlementtoadeferredfeeof323.7 million in a trust account, invested in U.S. government securities, until the completion of a business combination [181]. - The underwriters waived their entitlement to a deferred fee of 11,329,238, which was contingent upon completing a business combination with Airship AI [195]. - The company entered into non-redemption agreements with shareholders, committing to hold or acquire 7millionofClassAordinarysharesinconnectionwiththemerger[213].MergerandShareholderAgreements−ThecompanyenteredintoamergeragreementwithAirshipAIHoldings,Inc.onJune27,2023,whichincludesasupportagreementwiththeSponsor[215][216].−TheSponsoragreedtoforfeit1,000,000ClassAordinarysharesandcontribute2,600,000sharestosecurefinancingrelatedtothemerger[216].OperationalStatusandCompliance−Thecompanyhasnotengagedinanyoperationsorgeneratedrevenuestodate,withexpectedincreasedexpensesduetopubliccompanycompliance[191].−Thecompanyexpectstoincurincreasedexpensesrelatedtolegal,financialreporting,andauditingcomplianceasapublicentity[191].−AsofJune30,2023,thecompanyhadcashof7 million of Class A ordinary shares in connection with the merger [213]. Merger and Shareholder Agreements - The company entered into a merger agreement with Airship AI Holdings, Inc. on June 27, 2023, which includes a support agreement with the Sponsor [215][216]. - The Sponsor agreed to forfeit 1,000,000 Class A ordinary shares and contribute 2,600,000 shares to secure financing related to the merger [216]. Operational Status and Compliance - The company has not engaged in any operations or generated revenues to date, with expected increased expenses due to public company compliance [191]. - The company expects to incur increased expenses related to legal, financial reporting, and auditing compliance as a public entity [191]. - As of June 30, 2023, the company had cash of 213,892, raising substantial doubt about its ability to continue as a going concern [221][222]. - The company has no long-term debt or significant liabilities, except for a monthly fee of $10,000 to Sagara Group, LLC for office space and administrative services [223]. - As of June 30, 2023, there were 2,363,217 Class A ordinary shares subject to possible redemption, classified as temporary equity [226]. Accounting and Internal Controls - The company adopted ASU 2016-13 on January 1, 2023, which did not impact its financial statements [228]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [230]. - There were no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended June 30, 2023 [234].