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TKB Critical Technologies 1(USCT) - 2022 Q3 - Quarterly Report
USCTTKB Critical Technologies 1(USCT)2022-11-09 22:43

Financial Performance - For the three months ended September 30, 2022, the company reported a net income of 2,968,000,primarilyfromachangeinfairvalueofwarrantliabilitiesof2,968,000, primarily from a change in fair value of warrant liabilities of 2,222,775 and interest earned on marketable securities of 1,058,906,offsetbyoperationalcostsof1,058,906, offset by operational costs of 313,681 [134]. - For the nine months ended September 30, 2022, the company achieved a net income of 9,452,332,drivenbyachangeinfairvalueofwarrantliabilitiesof9,452,332, driven by a change in fair value of warrant liabilities of 9,122,500 and interest income of 1,399,324,withoperationalcoststotaling1,399,324, with operational costs totaling 1,069,492 [135]. Marketable Securities - As of September 30, 2022, the company held marketable securities in the trust account amounting to 236,003,266,whichincludesapproximately236,003,266, which includes approximately 1,403,266 of interest income [142]. IPO Details - The company completed its IPO on October 29, 2021, raising gross proceeds of 230,000,000fromthesaleof23,000,000unitsat230,000,000 from the sale of 23,000,000 units at 10.00 per unit, including an over-allotment option [137]. - Transaction costs related to the IPO totaled 21,140,059,whichincludedunderwritingdiscountsandactualofferingcosts,with21,140,059, which included underwriting discounts and actual offering costs, with 19,774,814 recorded to additional paid-in capital [139]. Cash and Expenses - The company had cash of 286,110heldoutsidethetrustaccountasofSeptember30,2022,intendedforidentifyingandevaluatingtargetbusinesses[143].−Thecompanyexpectstoincursignificantcostsrelatedtoidentifyingatargetbusinessandconductingduediligence,raisingsubstantialdoubtaboutitsabilitytocontinueasagoingconcern[145].−Thecompanyhasnolong−termdebtobligationsoroff−balancesheetfinancingarrangementsasofSeptember30,2022[147].−Thecompanyhasanagreementtopayitssponsoramonthlyfeeof286,110 held outside the trust account as of September 30, 2022, intended for identifying and evaluating target businesses [143]. - The company expects to incur significant costs related to identifying a target business and conducting due diligence, raising substantial doubt about its ability to continue as a going concern [145]. - The company has no long-term debt obligations or off-balance sheet financing arrangements as of September 30, 2022 [147]. - The company has an agreement to pay its sponsor a monthly fee of 10,000 for administrative support, which began on October 29, 2021 [148]. - The underwriters of the IPO are entitled to a deferred fee of $8,800,000, payable only if the company completes its initial business combination [149]. Earnings Per Share - The Company reports net income (loss) per ordinary share calculated by dividing net income (loss) by the weighted average number of ordinary shares outstanding for the period [157]. - As of September 30, 2022 and 2021, the Company had no dilutive securities or contracts that could potentially be exercised or converted into ordinary shares [157]. Accounting Standards - The FASB issued ASU No. 2020-06, effective for fiscal years beginning after December 15, 2023, which simplifies accounting for convertible instruments and diluted earnings per share calculation [158]. - The FASB issued ASU 2022-03, effective for fiscal years beginning after December 15, 2023, clarifying that contractual sales restrictions are not considered in measuring equity securities at fair value [159]. - Management does not believe that any recently issued accounting standards would have a material effect on the Company's financial statements [160].