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IX Acquisition (IXAQ) - 2023 Q4 - Annual Report
IXAQIX Acquisition (IXAQ)2024-03-28 00:19

IPO and Trust Account - The company completed its Initial Public Offering (IPO) on October 12, 2021, raising total gross proceeds of 230millionfromthesaleof23millionunitsat230 million from the sale of 23 million units at 10.00 per unit[72]. - Following the IPO, the company placed 231.15millioninaTrustAccount,initiallyinvestinginTreasuryobligationsandmoneymarketfunds[74].−AsofApril10,2023,shareholdersredeemed18,336,279ClassAordinarysharesforapproximately231.15 million in a Trust Account, initially investing in Treasury obligations and money market funds[74]. - As of April 10, 2023, shareholders redeemed 18,336,279 Class A ordinary shares for approximately 189 million at a redemption price of 10.31pershare,leavingapproximately10.31 per share, leaving approximately 48 million in the Trust Account[77]. - The company redeemed approximately 209.0millionfromtheTrustAccountduringtheyearendedDecember31,2023[105].−ThecompanyhadcashheldintheTrustAccountofapproximately209.0 million from the Trust Account during the year ended December 31, 2023[105]. - The company had cash held in the Trust Account of approximately 31.4 million as of December 31, 2023, intended for completing the initial business combination[107]. Business Combination and Extensions - The company has extended its business combination deadline multiple times, with the latest extension moving the deadline from November 12, 2023, to December 12, 2023[85]. - The sponsor has committed to deposit 160,000intotheTrustAccountforeachmonthlyextension,totaling160,000 into the Trust Account for each monthly extension, totaling 1.12 million from April to November 2023[90]. - The company has the right to extend the business combination deadline up to 18 times, allowing for extensions until October 12, 2024[88]. - The company plans to continue extending the deadline on a monthly basis, with the sponsor expected to deposit 50,000foreachextension[89].−Thecompanyhasnotyetselectedabusinesscombinationtargetbutisinsubstantivediscussionswithpotentialtargets[71].−Thecompanyplanstouse50,000 for each extension[89]. - The company has not yet selected a business combination target but is in substantive discussions with potential targets[71]. - The company plans to use 50,000 per month to complete a Business Combination until October 12, 2024, following the approval of the Second Extension Amendment[94]. Financial Performance - For the year ended December 31, 2023, the company reported a net income of approximately 4.0million,whichincluded4.0 million, which included 4.7 million in income from investments held in the Trust Account[99]. - The company incurred operating and formation expenses of approximately 1.0millionfortheyearendedDecember31,2023[100].−Thecompanyhadaworkingcapitaldeficitofapproximately1.0 million for the year ended December 31, 2023[100]. - The company had a working capital deficit of approximately 3.1 million as of December 31, 2023[104]. - As of December 31, 2023, the outstanding principal under the Amended and Restated Extension Promissory Note was $1,889,768[95]. Compliance and Regulatory Matters - The company received a Total Shareholders Notice from Nasdaq on October 9, 2023, indicating non-compliance with the requirement of at least 400 total holders[97]. - The company has until April 6, 2024, to demonstrate compliance with Nasdaq Listing Rule 5450(a)(2) to avoid potential delisting[97]. - The company expects to continue incurring significant costs in pursuit of its acquisition plans, with uncertainty regarding the consummation of a business combination by the extended deadline[108]. Accounting and Reporting - The Company accounts for its promissory notes with conversion options under ASC 815, requiring bifurcation of conversion options from host instruments[124]. - Management does not anticipate any material impact on financial statements from recently issued accounting standards that are not yet effective[125]. - The Company qualifies as a smaller reporting company and is not obligated to provide detailed market risk disclosures[126].