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BYTE Acquisition (BYTS) - 2023 Q3 - Quarterly Report
BYTSBYTE Acquisition (BYTS)2023-10-31 16:00

Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of approximately 1.5million,consistingofabout1.5 million, consisting of about 800,000 in operational losses and a noncash loss of approximately 1.0millionfromchangesinfairvalueofderivativewarrantliabilities[180].−FortheninemonthsendedSeptember30,2023,thecompanyhadanetlossofapproximately1.0 million from changes in fair value of derivative warrant liabilities [180]. - For the nine months ended September 30, 2023, the company had a net loss of approximately 2.1 million, which included approximately 3.4millioninoperationallossesandanoncashlossofapproximately3.4 million in operational losses and a noncash loss of approximately 2.5 million from changes in fair value of derivative warrant liabilities [181]. - As of September 30, 2023, the company had cash of 18,752[183].−Thecompanyhasnolong−termdebtorcapitalleaseobligations,butincursamonthlyfeeof18,752 [183]. - The company has no long-term debt or capital lease obligations, but incurs a monthly fee of 10,000 for office space and administrative services [185]. Shareholder Actions - Shareholders holding an aggregate of 525,624 Class A ordinary shares redeemed their shares for approximately 10.63pershareduringtheextraordinarygeneralmeetingonSeptember22,2023[174].BusinessCombinationTimeline−ThecompanyextendedthedeadlinetocompleteabusinesscombinationfromSeptember25,2023,toDecember26,2023,withapotentialfurtherextensiontoMarch25,2024[174].−ThecompanyisseekingtocompleteaninitialbusinesscombinationwithintheCombinationPeriodtoavoidmandatoryliquidation[184].−TheCompanyhasadeadlinetocompleteitsinitialbusinesscombinationbyDecember26,2023,orMarch25,2024,ifextendedwithoutshareholderapproval[204].−Iftheinitialbusinesscombinationisnotcompletedwithinthespecifiedtimeframe,theCompanymayberequiredtoliquidate[204].RegulatoryConsiderations−ThereviewprocessbyCFIUSorotherU.S.governmententitiescouldbelengthy,impactingthecompletionofthebusinesscombination[204].−TheCompanyhaslimitedtimetofinalizeitsinitialbusinesscombinationduetopotentialgovernmentreviewdelays[204].−IfthebusinesscombinationisultimatelyprohibitedbyCFIUSoranotherU.S.governmententity,itmayleadtoliquidation[204].InternalControls−Amaterialweaknessininternalcontrolsoverfinancialreportingwasidentified,whichcouldresultinmisstatementsoffinancialstatements[202].CapitalRaising−Thecompanycompletedaprivateplacementof1,030,000unitsat10.63 per share during the extraordinary general meeting on September 22, 2023 [174]. Business Combination Timeline - The company extended the deadline to complete a business combination from September 25, 2023, to December 26, 2023, with a potential further extension to March 25, 2024 [174]. - The company is seeking to complete an initial business combination within the Combination Period to avoid mandatory liquidation [184]. - The Company has a deadline to complete its initial business combination by December 26, 2023, or March 25, 2024, if extended without shareholder approval [204]. - If the initial business combination is not completed within the specified timeframe, the Company may be required to liquidate [204]. Regulatory Considerations - The review process by CFIUS or other U.S. government entities could be lengthy, impacting the completion of the business combination [204]. - The Company has limited time to finalize its initial business combination due to potential government review delays [204]. - If the business combination is ultimately prohibited by CFIUS or another U.S. government entity, it may lead to liquidation [204]. Internal Controls - A material weakness in internal controls over financial reporting was identified, which could result in misstatements of financial statements [202]. Capital Raising - The company completed a private placement of 1,030,000 units at 10.00 per unit, generating total gross proceeds of $10.3 million [172]. - The company has been operating as a blank check company for approximately 29 months since its initial public offering on March 23, 2021 [200].