Yotta Acquisition (YOTA) - 2022 Q4 - Annual Report

Financial Performance - The company had a net income of $145,189 for the year ended December 31, 2022, despite incurring a loss of approximately $1,196,341 from general and administrative expenses[72]. - The company has a working capital deficit of $301,331 as of December 31, 2022, excluding income tax and franchise tax payable[78]. - The company has not generated any operating revenues to date and does not expect to do so until after completing its initial business combination[70]. IPO and Capital Raising - The company completed an IPO on April 22, 2022, raising gross proceeds of $100,000,000 from the sale of 10,000,000 units at $10.00 per unit[74]. - The underwriters of the IPO received a cash underwriting discount of 2.0% of the gross proceeds, totaling $2,300,000, and a deferred fee of 3.5% amounting to $4,025,000[82]. - Offering costs related to the IPO were charged to stockholders' equity upon completion, including underwriting, legal, and accounting expenses[89]. Business Combination and Future Plans - The company entered into a merger agreement with NaturalShrimp Incorporated, which includes issuing 17.5 million shares of common stock to the former security holders of the target[65]. - The company expects to incur significant costs related to being a public company and pursuing a business combination[79]. - The company has deposited $1,150,000 into the Trust Account to extend the time to complete the business combination until April 22, 2023[68]. - The company has incurred and expects to continue to incur significant professional costs to remain a publicly traded company[79]. Accounting and Regulatory Matters - ASU 2020-06, effective for smaller reporting companies after December 15, 2023, simplifies accounting for certain financial instruments and introduces new disclosures for convertible debt[90]. - Management believes that no recently issued accounting pronouncements will materially affect the Company's financial statements[91]. - As a smaller reporting company, the Company is not required to disclose market risk under Item 7A[92]. Trust Account and Marketable Securities - As of December 31, 2022, the company had marketable securities held in the Trust Account amounting to $116,651,461[77].