TKB Critical Technologies 1(USCT) - 2023 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2023, the company reported a net income of $7,284,593, driven by a change in fair value of warrant liabilities of$2,712,275 and debt forgiveness of $4,649,995[159]. - For the six months ended June 30, 2023, the company had a net income of$2,612,950, which included $1,867,555 in interest earned on marketable securities and$4,649,995 in debt forgiveness[160]. - As of June 30, 2023, the company held marketable securities in the trust account amounting to $57,991,574, including approximately$2,171,193 of interest income and unrealized gains[170]. Business Combination and Operations - The company extended the deadline for completing an initial business combination from June 29, 2023, to October 29, 2024, with shareholder approval[155]. - A total of 17,533,296 Class A shares were redeemed for cash at approximately $10.38 per share, totaling around$181.9 million[154]. - The company expects to incur significant costs in identifying a target business and negotiating an initial business combination, raising concerns about its ability to continue as a going concern[172]. - The Company has until August 29, 2023, to complete an initial business combination, raising substantial doubt about its ability to continue as a going concern if not completed by this date[173]. Financial Obligations and Costs - The company incurred transaction costs of $21,140,059 related to its initial public offering, which included$3,850,000 in underwriting discounts[167]. - The company has drawn $250,000 under a promissory note for working capital, which was later forgiven, resulting in a recorded contribution from the sponsor of$250,000[156]. - As of June 30, 2023, the company had cash of $1 held outside the trust account, intended for operational expenditures related to identifying target businesses[171]. - The Company incurred a monthly fee of$10,000 to its sponsor for office space and administrative support from October 29, 2021, until the agreement was terminated on June 28, 2023[176]. - The underwriters of the initial public offering are entitled to a deferred fee of $8,800,000, payable only upon the completion of the initial business combination[177]. Accounting and Financial Reporting - The Company accounts for warrants based on their specific terms, with the potential for them to be classified as either equity or liability instruments[179]. - As of June 30, 2023, the Company has 22,250,000 warrants exercisable to purchase TKB Class A Shares, but no dilutive securities that could share in the earnings[184]. - The Company recognizes changes in the redemption value of its ordinary shares immediately, adjusting the carrying value to equal the redemption value at the end of each reporting period[182]. - Management does not anticipate that any recently issued accounting standards will materially affect the Company's financial statements[185]. - The Company has identified critical accounting policies that require significant estimates, including the fair value of warrant liabilities[178]. - As of June 30, 2023, the Company has no off-balance sheet financing arrangements or long-term debt obligations[174][175]. - The Company has not entered into any transactions that create relationships with unconsolidated entities or financial partnerships[174].