Financial Performance - The company had a net income of approximately $3,712,688 for the three months ended June 30, 2022, driven by a $4,211,660 gain on the change in fair value of warrants[109]. - For the six months ended June 30, 2022, the company reported a net income of $7,528,415, primarily due to a change in the fair value of warrants amounting to $8,605,210[111]. - The company incurred $876,623 in formation and operating costs for the six months ended June 30, 2022[111]. Cash and Capital Structure - As of June 30, 2022, the company had $50,429 in its operating bank account and negative working capital of approximately $1,395,091[113]. - The company generated gross proceeds of $276,000,000 from its IPO on March 9, 2021, selling 27,600,000 units at a price of $10.00 per unit[101]. - The company completed a private sale of 5,013,333 Private Placement Warrants at a purchase price of $1.50 per warrant, generating gross proceeds of $7,520,000[102]. - Common stock subject to possible redemption is classified as temporary equity and presented at redemption value outside of stockholders' equity[127]. Business Operations and Future Outlook - The company has not engaged in any operations or generated revenues to date, with activities focused on organizational tasks and identifying a target company for its initial business combination[108]. - The company may need to obtain additional financing to complete its initial business combination or to redeem a significant number of public shares, raising concerns about its ability to continue as a going concern[119]. - If the company is unable to complete a business combination by March 8, 2023, it will cease operations except for the purpose of liquidating[120]. Accounting and Reporting - The company had no cash flows from investing activities for the six months ended June 30, 2022, while $276,000,000 was used in net cash from investing activities in the same period of 2021[117]. - Derivative instruments, including warrants, are recorded at fair value and re-valued at each reporting date, with changes reported in the statements of operations[128]. - The allocation of proceeds from the issuance of convertible debt is guided by ASC 470-20, using the residual method to allocate IPO proceeds between Class A common stock and warrants[129]. - Management does not anticipate that recently issued accounting standards will have a material effect on the financial statements[130]. - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures[131].
Iris Acquisition p(IRAA) - 2022 Q2 - Quarterly Report