Yotta Acquisition (YOTA) - 2022 Q1 - Quarterly Report

IPO and Fundraising - The Company completed its IPO on April 22, 2022, raising gross proceeds of $100 million from the sale of 10 million units at $10.00 per unit [108]. - An additional 1.5 million units were sold through the over-allotment option, generating an extra $15 million in gross proceeds [109]. - The total amount placed in the Trust Account after the IPO and private placement was $115 million, intended for acquiring a target business and covering related expenses [110]. - The underwriters received a cash underwriting discount of 2.0% of the gross proceeds from the IPO, totaling $2 million, with a deferred fee of 3.5% amounting to $3.5 million [117]. - Offering costs related to the IPO were charged to stockholders' equity upon completion, including underwriting, legal, and accounting expenses [123]. Financial Position - As of March 31, 2022, the Company had cash of $150,991 and a working capital deficit of $136,378, which improved to cash of $929,798 and working capital of $706,818 post-IPO [111]. - A promissory note of $500,000 was established with the Sponsor, of which $250,000 was outstanding as of March 31, 2022, and was repaid on April 22, 2022 [114]. - The Company has raised substantial doubt about its ability to continue as a going concern if it cannot complete a business combination within the specified period [112]. Revenue and Expenses - The Company has not generated any operating revenues to date and does not expect to do so until after completing its initial business combination [105]. - The Company incurred no expenses from inception through March 31, 2022, resulting in no net loss during that period [107]. - The Company anticipates incurring significant professional and transaction costs as it pursues a business combination [112]. Accounting Standards - The Financial Accounting Standards Board issued ASU 2020-06 to simplify accounting for certain financial instruments, effective for smaller reporting companies after December 15, 2023 [125]. - The new standard introduces additional disclosures for convertible debt and amends diluted earnings per share guidance, requiring the use of the if-converted method for all convertible instruments [125]. - Management does not anticipate that recently issued accounting pronouncements will materially affect the Company's financial statements [126]. - As a smaller reporting company, the Company is not required to disclose market risk under Item 3 [127].