Borealis Foods(BRLS) - 2022 Q4 - Annual Report

Financial Performance - Oxus Acquisition Corp. had a net loss of $0.30 million for the year ended December 31, 2022, with operating expenses totaling $2.89 million [239]. - The company has a working capital deficiency of $1.58 million as of December 31, 2022 [250]. - Net loss per ordinary share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding, applying the two-class method [262]. Initial Public Offering - The company generated gross proceeds of $150 million from its Initial Public Offering of 15,000,000 units at $10.00 per unit [242]. - The company incurred $4.15 million in transaction costs related to the Initial Public Offering, including $3.45 million in underwriting fees [243]. Business Combination - Oxus entered into a Business Combination Agreement on February 23, 2023, with Borealis, which was unanimously approved by both boards of directors [227]. - The company plans to complete a Business Combination by December 8, 2023, following an extension approved by shareholders [249]. - The company has engaged EarlyBirdCapital, Inc. and Sova Capital Limited as advisors for the Business Combination, with a cash fee of up to $5.23 million payable upon consummation [255]. - The company expects to incur significant costs in pursuing its acquisition plans and cannot assure the success of completing a Business Combination [226]. Financial Instruments and Accounting - The company evaluates all financial instruments, including issued stock purchase warrants, to determine if they qualify as derivatives or contain embedded derivatives according to ASC 480 and ASC 815-15 [257]. - Public and private warrants are assessed for equity or liability classification based on specific terms and authoritative guidance, with the assessment conducted at issuance and quarterly thereafter [258]. - Issued or modified warrants that meet equity classification criteria are recorded as additional paid-in capital, while those that do not are recorded at initial fair value and changes recognized as non-cash gains or losses [259]. - As of December 31, 2022, 17,250,000 shares of Class A ordinary shares subject to possible redemption are presented as temporary equity, outside of shareholders' equity [261]. - The company is evaluating the impact of ASU 2020-06, effective for fiscal years beginning after December 15, 2023, which simplifies accounting for certain financial instruments [264]. - Management does not believe that recently issued accounting standards would have a material effect on financial statements [264]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [265].