Yotta Acquisition (YOTA) - 2022 Q2 - Quarterly Report

IPO and Fundraising - The Company completed its IPO on April 22, 2022, issuing 10,000,000 units at $10.00 per unit, generating gross proceeds of $100,000,000[104] - An additional 1,500,000 units were sold through the underwriters' over-allotment option, generating gross proceeds of $15,000,000[105] - The underwriters are entitled to a cash underwriting discount of 2.0% of the gross proceeds from the IPO, amounting to $2,300,000[112] Financial Position - As of June 30, 2022, the Company had marketable securities in the Trust Account totaling $115,139,177[107] - The Company had cash of $386,487 outside the Trust Account and a working capital of $609,470 as of June 30, 2022[108] - The Company plans to use funds from the Trust Account primarily for acquiring a target business and covering related expenses[107] Financial Performance - The Company reported a net loss of $20,219 for the three and six months ended June 30, 2022, primarily due to general and administrative expenses[103] - The Company expects to incur significant costs related to being a public company and pursuing a Business Combination[109] Business Combination and Liquidation - If a Business Combination is not completed by January 27, 2023, the Company may proceed with voluntary liquidation[109] Accounting Standards - The Financial Accounting Standards Board (FASB) issued ASU 2020-06 to simplify accounting for certain financial instruments, effective for smaller reporting companies for fiscal years beginning after December 15, 2023[119] - ASU 2020-06 eliminates the separation of beneficial conversion and cash conversion features from convertible instruments[119] - The new standard introduces additional disclosures for convertible debt and freestanding instruments indexed to an entity's own equity[119] - The amendments to diluted earnings per share guidance require the use of the if-converted method for all convertible instruments[119] - Management does not believe that any other recently issued accounting pronouncements would have a material effect on the Company's financial statement[120] Market Risk Disclosures - As a smaller reporting company, the Company is not required to make disclosures about market risk[121] Off-Balance Sheet Arrangements - The Company has no off-balance sheet arrangements as of June 30, 2022[110]