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Investcorp Acquisition (IVCA) - 2023 Q3 - Quarterly Report
IVCAInvestcorp Acquisition (IVCA)2023-12-01 00:25

Financial Performance - As of September 30, 2023, the Company had a net income of 6,755,292,consistingofoperatingcostsof6,755,292, consisting of operating costs of 1,307,228 and interest earned from investments held in the Trust Account of 8,614,558[129].−TheCompanyincurredoperatingcostsof8,614,558[129]. - The Company incurred operating costs of 461,510 for the three months ended September 30, 2023, compared to 273,246forthesameperiodin2022[128].−TheCompanyhadalossduetochangeinfairvalueofwarrantsof273,246 for the same period in 2022[128]. - The Company had a loss due to change in fair value of warrants of 552,038 for the nine months ended September 30, 2023[129]. Cash and Working Capital - The Company had cash of 30,414andaworkingcapitaldeficitof30,414 and a working capital deficit of 427,503 as of September 30, 2023[130]. - The Company had investments held in the Trust Account amounting to 106,318,563asofSeptember30,2023[134].−TheCompanyintendstousesubstantiallyallfundsheldintheTrustAccounttocompletetheBusinessCombinationandforworkingcapitalofthetargetbusiness[134].InitialPublicOfferingandShareholderActions−TheCompanygeneratedgrossproceedsof106,318,563 as of September 30, 2023[134]. - The Company intends to use substantially all funds held in the Trust Account to complete the Business Combination and for working capital of the target business[134]. Initial Public Offering and Shareholder Actions - The Company generated gross proceeds of 225,000,000 from the Initial Public Offering of 22,500,000 Class A Public Shares at 10.00pershare[131].−Atotalof10.00 per share[131]. - A total of 172,774,717 in redemption payments were made, with 16,085,554 shares of Class A ordinary shares redeemed at a per share price of approximately 10.74[124].−ShareholdersapprovedtheextensionofthebusinesscombinationdeadlinefromAugust12,2023,toAugust12,2024[148].BusinessCombinationandLiquidation−TheCompanyhasuntilAugust12,2024,toconsummateaBusinessCombination,oritwillfacemandatoryliquidation[137].−Followingtheredemption,theCompanyhas9,789,446ClassAordinarysharesoutstanding[148].AccountingandReporting−TheCompanyrecognizeschangesinredemptionvalueimmediatelyandadjuststhecarryingvalueofredeemableordinarysharesaccordingly[149].−Warrantsareclassifiedaseitherequityorliabilitybasedonspecifictermsandapplicableguidance,requiringprofessionaljudgment[150].−Forwarrantsmeetingequityclassificationcriteria,theyarerecordedasadditionalpaid−incapitalatissuance[151].−TheCompanyqualifiesasan"emerginggrowthcompany"undertheJOBSAct,allowingittodelaytheadoptionofnewaccountingstandards[152].−TheCompanyisevaluatingthebenefitsofreducedreportingrequirementsundertheJOBSAct,whichmayexemptitfromcertaindisclosuresforfiveyearspost−IPO[154].SponsorContributions−TheSponsoragreedtocontributeupto10.74[124]. - Shareholders approved the extension of the business combination deadline from August 12, 2023, to August 12, 2024[148]. Business Combination and Liquidation - The Company has until August 12, 2024, to consummate a Business Combination, or it will face mandatory liquidation[137]. - Following the redemption, the Company has 9,789,446 Class A ordinary shares outstanding[148]. Accounting and Reporting - The Company recognizes changes in redemption value immediately and adjusts the carrying value of redeemable ordinary shares accordingly[149]. - Warrants are classified as either equity or liability based on specific terms and applicable guidance, requiring professional judgment[150]. - For warrants meeting equity classification criteria, they are recorded as additional paid-in capital at issuance[151]. - The Company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[152]. - The Company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO[154]. Sponsor Contributions - The Sponsor agreed to contribute up to 1,200,000 to the Company's Trust Account for monthly contributions until August 12, 2024, to facilitate the business combination[123].