Financial Performance - For the three months ended June 30, 2023, the company recorded net income of $3,943,986, primarily from interest and dividend income of $3,453,154 and a gain on fair value of warrant liability of $844,141 [155]. - The company recorded net income of $6,064,849 for the six months ended June 30, 2023, driven by interest and dividend income of $6,493,944 and a gain on receivable related to potential business combination of $374,975 [158]. - The company has incurred significant operational costs, with net cash used in operating activities of $422,356 for the six months ended June 30, 2023 [160]. - The company has incurred and expects to continue incurring significant costs in pursuit of its initial business combination, raising concerns about its ability to continue as a going concern [171]. Cash and Liabilities - As of June 30, 2023, the company held cash of $304,513 and current liabilities of $1,141,554, indicating a decrease in cash from $726,869 as of December 31, 2022 [145]. - As of June 30, 2023, the company had $304,513 in cash held outside of the Trust Account and a working capital deficit of $776,843, which may not be sufficient for operations for at least the next 12 months [169]. - The company must complete one or more initial business combinations with an aggregate fair market value of at least 80% of the net assets held in the Trust Account [143]. Business Combination and Extensions - An Extraordinary General Meeting on July 27, 2023, approved an extension for the company to consummate its initial business combination until July 30, 2024, with 13,532,591 Class A ordinary shares redeemed for approximately $140,838,808 [150]. - The company signed a non-binding letter-of-intent for a business combination with Glowforge Inc. on July 26, 2023, with expectations to announce further details in Q4 2023 [152][153]. - The company has until July 30, 2024, to complete a business combination, after which mandatory liquidation will occur if not completed [170]. Financing and Operational Support - The company has a commitment from its Sponsor to make monthly payments of $225,000 to cover operational expenses during the extension period [150]. - The company may need to obtain additional financing to complete its business combination or to redeem a significant number of Public Shares [168]. - Up to $1,500,000 of loans from the Sponsor or affiliates may be convertible into units of the post-business combination company at a price of $10.00 per unit [166]. IPO and Shareholder Matters - The company completed its IPO on July 30, 2021, raising gross proceeds of $250.0 million from the sale of 25,000,000 Units at $10.00 per Unit, with offering costs of approximately $13.75 million [138]. - The underwriters were paid a cash underwriting discount of $0.20 per unit, totaling $5,650,000, upon the closing of the IPO and partial exercise of the over-allotment option [175]. - All 28,250,000 Class A ordinary shares sold in the IPO contain a redemption feature, classified outside of permanent equity due to SEC guidance [178]. - The company recognizes changes in the redemption value of ordinary shares immediately and adjusts the carrying value accordingly [179]. Valuation and Accounting - The initial fair value of Public Warrants was estimated using a binomial/lattice model, while the fair value of Founder and Private Placement Warrants was set equal to that of Public Warrants due to lack of meaningful volatility [182]. - As of June 30, 2023, the company had no cash flows from investing or financing activities, indicating a focus on operational and strategic activities [162][163].
Plum Acquisition(PLMJ) - 2023 Q2 - Quarterly Report