Workflow
TKB Critical Technologies 1(USCT) - 2023 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of 1,267,241,primarilyduetoachangeinfairvalueofwarrantliabilitiesof1,267,241, primarily due to a change in fair value of warrant liabilities of 1,185,925 and operational costs of 460,206[156].FortheninemonthsendedSeptember30,2023,thecompanyhadanetincomeof460,206[156]. - For the nine months ended September 30, 2023, the company had a net income of 1,345,709, which included a change in fair value of warrant liabilities of 1,328,325andinterestearnedonmarketablesecuritiesof1,328,325 and interest earned on marketable securities of 2,204,264[157]. - The company incurred net cash used in operating activities of 664,645fortheninemonthsendedSeptember30,2023,comparedto664,645 for the nine months ended September 30, 2023, compared to 444,367 for the same period in 2022[165][166]. Marketable Securities - As of September 30, 2023, the company held marketable securities in the trust account amounting to 22,846,633,includingapproximately22,846,633, including approximately 1,050,426 of interest income and unrealized gains[167]. Business Combination and Going Concern - The company extended the deadline for completing an initial business combination from June 29, 2023, to October 29, 2024, with shareholder approval[153]. - The Company has until November 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[170]. - The company has significant costs associated with identifying a target business and conducting due diligence, raising doubts about its ability to continue as a going concern[169]. Shareholder Activity - A total of 17,533,296 Class A Shares were redeemed for cash at a redemption price of approximately 10.38pershare,totalingapproximately10.38 per share, totaling approximately 181.9 million[152]. - The underwriters of the initial public offering are entitled to a deferred fee of 8,800,000,payableonlyuponthecompletionoftheinitialbusinesscombination[173].InitialPublicOfferingThecompanycompleteditsinitialpublicofferingonOctober29,2021,generatinggrossproceedsof8,800,000, payable only upon the completion of the initial business combination[173]. Initial Public Offering - The company completed its initial public offering on October 29, 2021, generating gross proceeds of 230,000,000 from the sale of 23,000,000 units[161]. - Transaction costs for the initial public offering amounted to 21,140,059,with21,140,059, with 19,774,814 recorded to additional paid-in capital[164]. Warrant Accounting - The Company accounts for warrants based on their specific terms, with the potential for them to be classified as either equity or liability instruments[175]. - As of September 30, 2023, the Company has 22,250,000 warrants exercisable to purchase Class A Shares, but no dilutive securities that could share in the earnings[179]. - 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[178]. Administrative Expenses - The Company incurred a monthly fee of $10,000 for office space and administrative support until the agreement was terminated on June 28, 2023[172]. Accounting Policies - Management does not believe that any recently issued accounting standards will have a material effect on the Company's financial statements[180]. - The Company has identified critical accounting policies that require estimates and assumptions affecting reported amounts of assets and liabilities[174]. - The Company has not entered into any transactions that create relationships with unconsolidated entities or financial partnerships[171].