Financial Performance - The company reported a net loss of $256,000 for the three months ended March 31, 2022, compared to an accumulated deficit of $3,083,000 as of December 31, 2021, representing an increase in the deficit of 8.3%[22][24] - The Company incurred a loss attributable to Class A ordinary shareholders of $215,000, resulting in a basic and diluted loss per Class A ordinary share of $0.02 for the three months ended March 31, 2022[60] - The company generated interest income of $12,000 during the three months ended March 31, 2022[22] Assets and Liabilities - Total current assets decreased from $1,308,000 as of December 31, 2021, to $1,071,000 as of March 31, 2022, a decline of approximately 18.1%[20] - Total liabilities decreased slightly from $4,668,000 as of December 31, 2021, to $4,617,000 as of March 31, 2022, a reduction of 1.1%[20] - Cash and cash equivalents at the end of the period were $738,000, down from $975,000 at the beginning of the period, a decrease of 24.3%[20][26] - As of March 31, 2022, the Company had $738,000 in cash and $882,000 in working capital, indicating limited liquidity[69] Business Operations and Strategy - The company intends to focus its search for a business combination on Israeli technology-based life science businesses[31] - The Company has not yet engaged in revenue-generating operations and only generates non-operating income from interest on funds held in its trust account[71] - The Company has not reached a definitive agreement with any target company for a business combination as of the reporting date[67] Initial Public Offering and Financing - The initial public offering raised a total of $126.5 million, with an additional $2.53 million invested by the sponsor to preserve a redemption value of $10.20 per share[35] - The Company issued and sold 12,650,000 units at an offering price of $10.00 per unit, raising a total of $126.5 million from the public offering[50][55] - The net proceeds from the IPO and private warrants amounted to $130,142,000, with $129,030,000 deposited into a non-interest-bearing trust account[75] - The Company has secured up to $450,000 in loans from its sponsor and affiliates to address potential working capital deficiencies prior to the initial business combination[74] Future Outlook and Concerns - The company has until May 2, 2023, to consummate an Initial Business Combination, raising substantial doubt about its ability to continue as a going concern[41] - The company faces substantial doubt about its ability to continue as a going concern if it cannot complete a business combination within 18 months of the IPO[90] - The ongoing COVID-19 pandemic and geopolitical tensions may adversely affect the company's ability to identify and complete a business combination[91][92] Costs and Expenses - The Company expects to incur significant costs related to being a public company and pursuing acquisition plans, which may impact its financial position[72] - The company anticipates liquidity requirements of approximately $700,000 for legal and due diligence expenses, $100,000 for regulatory fees, and $180,000 for administrative services[78] - The Company signed an administrative services agreement to pay the Sponsor $10,000 per month for office space and administrative expenses[62] Share Structure - The weighted average of Class A ordinary shares subject to possible redemption remained at 12,650,000 shares, with a basic and diluted loss per share of $0.02[22] - The Company is authorized to issue up to 500,000,000 Class A ordinary shares, with 12,650,000 shares already issued as part of the public offering[55] - The Company has issued 2,875,000 Class B ordinary shares, which are convertible into Class A ordinary shares on a one-to-one basis[57][58] Trust Account and Investments - Cash held in the trust account increased marginally from $129,032,000 to $129,044,000, reflecting a growth of 0.01%[20] - The trust account funds are invested in U.S. government treasury bills or money market funds, minimizing exposure to interest rate risk[83] Regulatory and Compliance - The SEC's proposed rules regarding SPACs may increase the costs and time required to complete the initial business combination[95] - The company does not expect any changes in its internal control over financial reporting that would materially affect its operations[86] - The company has filed certifications for both the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act of 2002[31.1][31.2] Report Authenticity - The report includes Inline XBRL Instance Document and various taxonomy extension documents for financial reporting[101.INS][101.SCH][101.CAL][101.DEF][101.LAB][101.PRE] - The signatures of the Chief Executive Officer and Chief Financial Officer are included, confirming the report's authenticity[107][108]
Cactus Acquisition Corp. 1 Ltd.(CCTSU) - 2022 Q1 - Quarterly Report