Financial Performance - Net loss for the three months ended June 30, 2024, was $(448,321), compared to a net income of $673,543 for the same period in 2023[20]. - Basic and diluted net loss per redeemable common share was $(0.10) for the three months ended June 30, 2024, compared to a net income of $0.13 for the same period in 2023[20]. - The net income (loss) per share for the three months ended June 30, 2024, was $(0.10), while for the same period in 2023, it was $(0.05), reflecting a decline in performance[75]. - For the six months ended June 30, 2024, the net cash used in operating activities was $(287,348), a decrease from $(630,958) for the same period in 2023, indicating improved cash flow management[26]. - The total formation and operating costs for the six months ended June 30, 2024, were $997,211, while for the same period in 2023, these costs were $298,131, reflecting a substantial increase in expenses[142]. Assets and Liabilities - Total current assets increased to $488,777 in 2024 from $371,470 in 2023, representing a growth of approximately 31.6%[18]. - Total assets rose to $20,136,462 in 2024 compared to $19,558,645 in 2023, marking an increase of about 2.9%[19]. - Current liabilities increased to $5,252,323 in 2024 from $4,037,462 in 2023, reflecting a rise of approximately 30.1%[18]. - Total liabilities increased to $8,874,823 in 2024 from $7,659,962 in 2023, an increase of approximately 15.9%[19]. - Cash held in trust increased to $19,647,685 in 2024 from $19,187,175 in 2023, a growth of about 2.4%[18]. Cash Flow and Investments - Cash at the end of the period was $78,427, up from $15,147 at the end of the same period in 2023, showing a strong increase in liquidity[26]. - The net cash provided by investing activities was $166,748 for the six months ended June 30, 2024, compared to $54,362,173 in the prior year, indicating a shift in investment strategy[26]. - The company reported unrealized losses from marketable securities held in the trust account amounting to $(507,258) for the six months ended June 30, 2024, compared to $(1,940,738) in the prior year, reflecting a significant reduction in losses[26]. Business Combination and IPO - The company raised gross proceeds of $90,000,000 from its Initial Public Offering (IPO) on December 29, 2021, with an additional $13,500,000 from the underwriters' over-allotment option[31]. - The total transaction costs associated with the IPO amounted to $6,524,539, which includes $1,811,250 in underwriting fees[33]. - The company intends to apply substantially all of the net proceeds from the IPO towards consummating a business combination, with no assurance of success[36]. - The Company extended the deadline for its initial Business Combination from March 29, 2023, to December 29, 2024, with stockholders approving the Charter Amendment[44]. - The Company entered into a new business combination agreement with Ayurcann Holding Corp. on June 25, 2024, which involves a merger with Arogo continuing as the surviving company[137]. Compliance and Regulatory Issues - The Company received a notice from Nasdaq regarding potential delisting due to non-compliance with market value and holder requirements[111]. - The Company submitted a request for a hearing to maintain compliance with Nasdaq's listing requirements[112]. - The Company received a deficiency notice from Nasdaq indicating that its Market Value of Listed Securities was below the required minimum of $50 million from November 13, 2023, to January 9, 2024[119]. - On July 31, 2024, the company was notified of potential suspension and delisting from Nasdaq due to non-compliance with listing rules, including maintaining a Market Value of Listed Securities of at least $50 million and having at least 400 total holders[120]. - The Company is currently engaged in a business combination as part of its strategy to regain compliance with Nasdaq listing requirements[170]. Risks and Future Outlook - The Company expects to incur significant costs in pursuit of its financing and acquisition plans, raising concerns about its ability to continue as a going concern[56]. - Recent market conditions have led to extreme volatility, diminished liquidity, and increased uncertainty, which may adversely affect the Company's financial condition and stock price[171]. - The Company faces risks related to liquidity shortages and potential difficulties in accessing financing due to unstable market conditions[171]. - The closures of Silicon Valley Bank and Signature Bank have raised concerns about liquidity risks in the financial sector, which may impact the Company's operations[171]. - The Company is actively monitoring economic conditions and their potential impact on its growth strategy and financial performance[171].
Arogo Capital Acquisition (AOGO) - 2024 Q2 - Quarterly Report