Financial Performance - For the three months ended June 30, 2024, the company reported a net loss of $899,833, which included a $1,273,750 loss on the change in fair value of warrant liabilities and $3,355,845 in formation and operating costs[143]. - For the six months ended June 30, 2024, the company had a net income of $3,656,692, driven by $2,685,613 in interest income on cash held in the Trust Account and a $5,320,000 gain on the fair value of warrant liabilities[143]. - The company has not generated any operating revenues to date and will only do so after the completion of its initial business combination[142]. Trust Account and Liquidity - As of June 30, 2024, the company had $106,759,103 remaining in the Trust Account after shareholders exercised their right of redemption amounting to $268,092,426[148]. - The company intends to utilize substantially all funds held in the Trust Account to complete its initial business combination, with potential withdrawals for tax obligations[148]. - The company has available $182,038 of proceeds held outside the Trust Account for operational needs and due diligence activities[149]. - Future liquidity requirements include legal, accounting, and due diligence expenses related to the Business Combination, as well as general working capital for miscellaneous expenses[157]. Loans and Financing - The total amount outstanding under loans was $6,450,000 as of June 30, 2024, reflecting the company's reliance on financing to support operations and business combination efforts[154]. - The company entered into multiple non-interest bearing loans totaling up to $6,450,000 to fund extension contributions and working capital needs[153]. - The company anticipates that any loans from its Sponsor or affiliates may be convertible into private placement warrants at a price of $1.00 per warrant[151]. Business Combination and Shareholder Actions - On May 21, 2024, shareholders approved an extension of the Business Combination deadline from June 17, 2024, to December 17, 2024, with 2,159,610 Class A ordinary shares redeemed at a price of $11.32 per share, totaling approximately $24.4 million withdrawn from the Trust Account[156]. - If the Business Combination is not completed by the end of the period, the company will undergo automatic winding up and liquidation, raising substantial doubt about its ability to continue as a going concern[159]. Advisory and Fees - The underwriter is entitled to a deferred fee of $0.35 per Unit, totaling $12,075,000, payable only upon successful completion of the Business Combination[167]. - The company entered into an advisory agreement with a third-party consultant, with a potential advisory fee of $3,000,000 payable upon consummation of the Business Combination[169]. Risk Management and Compliance - The company is evaluating the impact of adopting ASU No. 2023-09 on its financial position and disclosures, effective for annual periods beginning after December 15, 2024[177]. - The company is not subject to material market or interest rate risk as of June 30, 2024, with IPO proceeds invested in U.S. government treasury obligations[180]. - Prior to December 14, 2023, funds in the Trust Account were held in U.S. government treasury obligations or money market funds to mitigate the risk of being deemed an unregistered investment company[181]. - The company entered into an amendment to the Trust Agreement on December 14, 2023, allowing investment of funds in the Trust Account into an interest-bearing account[182]. - The company has not engaged in any hedging activities since inception and does not expect to do so regarding market risk exposure[182]. - The short-term nature of investments indicates no material exposure to interest rate risk[182].
Investcorp Europe Acquisition I(IVCB) - 2024 Q2 - Quarterly Report