Financial Performance - The company reported a net loss of $393,639 for the three-month period ended June 30, 2022, primarily due to formation and operating costs of $498,751, partially offset by interest income of $105,113 [111]. - For the six-month period ended June 30, 2022, the net loss was $1,113,645, consisting of formation and operating costs of $1,299,800, offset by interest income of $109,567 and a change in fair value of derivative liability of $76,588 [111]. - Cash used in operating activities for the six months ended June 30, 2022, was $588,350, primarily due to the net loss [123]. - The diluted net loss per common share is the same as the basic net loss per common share due to the absence of dilutive securities as of June 30, 2022 [131]. Capital Raising and Liquidity - The company completed its IPO on December 23, 2021, raising gross proceeds of $75,000,000 from the sale of 7,500,000 units at $10.00 per unit [112]. - An additional $2,698,306 was raised from the exercise of the underwriters' over-allotment option, bringing total gross proceeds to $77,698,306 [114]. - The company has approximately $1,250,000 available outside the trust account for identifying and evaluating target businesses and conducting due diligence [116]. - Estimated primary liquidity requirements include $425,000 for legal and accounting expenses, $600,000 for D&O insurance, and $150,000 for regulatory reporting fees [118]. - The company intends to use substantially all funds in the trust account to complete its initial business combination [115]. Debt and Going Concern - The company does not have any long-term debt obligations or capital lease obligations [124]. - There is substantial doubt about the company's ability to continue as a going concern within one year after the issuance of the financial statements [122]. Stockholder Rights and Securities - The company has agreed to waive redemption rights for founder shares in connection with business combinations and stockholder votes, with a potential extension of up to 18 months from the IPO closing [127]. - The company is required to register certain securities for sale under the Securities Act, allowing initial stockholders to make up to three demands for registration [128]. - As of June 30, 2022, the company reported Class A common stock subject to possible redemption amounting to $78,448,306, classified as temporary equity [133]. Accounting and Market Risk - The company has no identified critical accounting policies or estimates that could materially differ from actual results [129]. - The company evaluates its financial instruments to determine if they qualify as derivatives, with changes in fair value reported in the statements of operations [132]. - The company has not disclosed any market risk information as it qualifies as a smaller reporting company [134].
ZyVersa Therapeutics(ZVSA) - 2022 Q2 - Quarterly Report