Financial Position - As of June 30, 2024, total assets amounted to $238,937,000, while total current liabilities were $254,325,000, resulting in a shareholders' deficit of $15,388,000[7]. - As of June 30, 2024, the Company does not have sufficient liquidity to meet its current obligations but has access to funds from the Sponsor to cover working capital needs until at least one year from the date of the financial statements[30]. - The Company has no long-term debt or off-balance sheet arrangements as of June 30, 2024[88]. Initial Public Offering (IPO) - The company completed its Initial Public Offering on July 15, 2024, selling 23,000,000 units at $10.00 per unit, generating gross proceeds of $230,000,000[15]. - Transaction costs related to the Initial Public Offering totaled $15,574,281, which included a cash underwriting fee of $4,000,000 and a deferred underwriting fee of $10,950,000[17]. - The Company sold 23,000,000 Units in its Initial Public Offering at a price of $10.00 per Unit, including the full exercise of the underwriters' over-allotment option of 3,000,000 Units[44]. - The underwriters exercised their over-allotment option to purchase an additional 3,000,000 units at a price of $10.00 per unit[63]. - The Company incurred total offering costs of $15,574,281, which included a cash underwriting fee of $4,000,000 and a deferred underwriting fee of $10,950,000[83]. - Following the Initial Public Offering, $230,000,000 was placed in the Trust Account to be used for completing a Business Combination[83]. - An aggregate of $230,000,000 from the Initial Public Offering and the sale of Private Placement Warrants was placed in the Trust Account[100]. Business Operations - The company has not yet commenced any operations and will not generate operating revenues until after completing its initial business combination[14]. - The Company has not engaged in any operations or generated revenues to date, with activities focused on organizational tasks and identifying a target company for a Business Combination[79]. - The Company plans to continue incurring significant costs in pursuit of its acquisition plans, with no assurance of successful completion of a Business Combination[78]. Shareholder Rights and Warrants - Public shareholders will have the opportunity to redeem their shares at a price of $10.00 per share upon completion of the initial business combination[22]. - Each Unit consists of one Class A ordinary share and one-half of one redeemable Public Warrant, with each Public Warrant entitling the holder to purchase one Class A ordinary share at a price of $11.50 per share[44]. - The Company may redeem outstanding warrants at a price of $0.01 per warrant if the Class A ordinary share price equals or exceeds $18.00 for any 20 trading days within a 30-trading day period[50]. - The Company will use commercially reasonable efforts to file a registration statement for the Class A ordinary shares issuable upon exercise of the warrants within 20 business days after the Business Combination[48]. - The Company has registration rights for holders of founder shares and Private Placement Warrants to register their securities prior to the initial Business Combination[62]. Financial Performance - The net loss for the period from February 21, 2024, through June 30, 2024, was $40,388,000, with a basic and diluted net loss per share of $0.01[9]. - As of June 30, 2024, the Company reported a net loss of $22,202 for the three months ended June 30, 2024, and a cumulative net loss of $40,388 since inception[80]. Sponsor and Management - The Sponsor has agreed to loan the Company up to $340,000 for Initial Public Offering expenses, with $218,198 outstanding as of June 30, 2024[57]. - The Sponsor and directors have waived their redemption rights concerning their shares in connection with the initial Business Combination[25]. - The Company has not requested the Sponsor to reserve for indemnification obligations, raising concerns about the Sponsor's ability to satisfy those obligations[26]. - The Company has entered into an agreement to pay $12,500 per month for administrative services until the completion of the initial Business Combination[58]. Regulatory and Market Risks - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[31]. - The Company is subject to risks from geopolitical instability, including the Russia-Ukraine conflict and the Israel-Hamas conflict, which could impact market conditions[60].
Launch One Acquisition Corp.(LPAA) - 2024 Q2 - Quarterly Report