Financial Performance - The company reported a net loss of $127,932 for the three months ended June 30, 2024, with operating costs of $687,000 and interest income of $548,222[138]. - For the six months ended June 30, 2024, the company had a net loss of $95,393, with operating costs of $1,184,691 and interest income of $1,089,298[139]. - The company has not generated any revenues to date and does not expect to do so until after the completion of its Business Combination[138]. Initial Public Offering - The company completed its initial public offering on February 17, 2023, raising gross proceeds of $69,000,000 from 6,900,000 units sold at $10.00 per unit[141]. - The company incurred transaction costs of $4,366,343 related to its initial public offering[141]. Business Combination and Extensions - The company has the right to extend the deadline for consummating a Business Combination up to twelve times until November 18, 2024[131]. - The company may extend the time to consummate a business combination from August 18, 2024, to September 18, 2024, by depositing a $30,000 monthly extension payment[150]. - The company anticipates significant costs in pursuing its acquisition plans and cannot assure the success of its Business Combination[128]. Financial Obligations and Borrowings - The company issued an Extension Note for up to $360,000 to the sponsor, with monthly payments of $30,000 until the completion of the initial Business Combination[144]. - As of June 30, 2024, the company had $240,000 outstanding borrowings under the Extension Note[144]. - As of June 30, 2024, total borrowings under the unsecured promissory note amounted to $345,688 out of a principal amount of up to $1,000,000[145]. Trust Account and Investments - Investments held in the Trust Account totaled $42,710,277, including $2,877,019 of interest income, primarily in U.S. government securities[146]. - Cash held outside the Trust Account was $12,319, intended for identifying and evaluating target businesses and conducting due diligence[147]. - The fair value of investments held in the Trust Account increased from $41,440,980 as of December 31, 2023, to $42,710,277 as of June 30, 2024[158]. Other Financial Information - The fair value of public rights at issuance amounted to $3,305,100[160]. - The fair value of public warrants at issuance was $1,104,000, while representative warrants had a fair value of $12,075[161]. - The company has no long-term debt or off-balance sheet arrangements as of June 30, 2024[152]. - The company has incurred a monthly fee of $10,000 for office space and administrative services since February 15, 2023[154].
Distoken Acquisition (DIST) - 2024 Q2 - Quarterly Report