TKB Critical Technologies 1(USCT) - 2023 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2023, the company reported a net loss of $4,671,643, which includes a change in fair value of warrant liabilities of$2,854,675 and operational costs of $2,876,950[167]. - The company has not generated any revenues to date and only has non-operating income from interest on cash and cash equivalents[166]. - For the three months ended March 31, 2022, net income was$2,488,362, with net cash used in operating activities amounting to $281,574[175]. Cash Flow and Liquidity - The company had net cash used in operating activities of$130,477 for the three months ended March 31, 2023[174]. - As of March 31, 2023, the company had a balance of approximately $56.7 million in its Trust Account after redemptions[163]. - The company had cash of$423,760 held outside the trust account, intended for evaluating target businesses and related due diligence[177]. - The company expects to raise additional funds to cover significant costs related to identifying a target business and conducting due diligence, raising substantial doubt about its ability to continue as a going concern within one year[178]. Initial Public Offering and Business Combination - The company completed its initial public offering on October 29, 2021, raising gross proceeds of $230,000,000 from the sale of 23,000,000 units at$10.00 per unit[170]. - A total of $234,600,000 from the IPO proceeds and private placement warrants was placed in a Trust Account at J.P. Morgan Chase Bank[172]. - The company entered into a Business Combination Agreement with Wejo Group Limited on January 10, 2023, with the closing expected in the second quarter of 2023[157]. - Shareholders approved an extension to complete the initial business combination from January 29, 2023, to June 29, 2023, with 17,533,296 Class A Shares redeemed for approximately$181.9 million[163]. - The company has until June 29, 2023, to complete an initial business combination, or it will face mandatory liquidation and potential dissolution[179]. Costs and Expenses - Transaction costs for the initial public offering amounted to $21,140,059, with$19,774,814 recorded to additional paid-in capital[173]. - The company expects to incur significant costs in pursuing its initial business combination, raising doubts about its ability to continue as a going concern[156]. - The underwriters of the initial public offering are entitled to a deferred fee of $8,800,000, payable only if the initial business combination is completed[183]. - The company has an agreement to pay its sponsor a monthly fee of$10,000 for office space and administrative support until the completion of the initial business combination or liquidation[182]. Equity and Securities - The company accounts for its ordinary shares subject to possible redemption as temporary equity, reflecting certain redemption rights outside of the company's control[187]. - The company did not have any dilutive securities or contracts that could potentially be converted into ordinary shares as of March 31, 2023[189]. - The company has no off-balance sheet financing arrangements as of March 31, 2023[180].