Cactus Acquisition Corp. 1 Ltd.(CCTSU) - 2022 Q2 - Quarterly Report

Financial Position - As of June 30, 2022, total assets amounted to $130.195 million, a slight decrease from $130.615 million as of December 31, 2021[19] - Cash and cash equivalents decreased to $537,000 from $975,000 as of December 31, 2021[19] - Total current liabilities decreased to $109,000 from $240,000 as of December 31, 2021[19] - The trust account held $129.215 million in cash as of June 30, 2022, compared to $129.032 million at the end of 2021[19] - The Company has approximately $537,000 in cash and $761,000 in working capital as of June 30, 2022[68] - 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[74] Losses and Earnings - The company reported a net loss of $289,000 for the six months ended June 30, 2022, compared to a net loss of $33,000 for the same period in 2021[21] - The Company incurred a net loss of $378 thousand for the six months ended June 30, 2022, compared to a net loss of $164 thousand for the same period in 2021[59] - The basic and diluted loss per Class A ordinary share was $(0.02) for the six months ended June 30, 2022[59] - The accumulated deficit increased to $3.557 million as of June 30, 2022, from $3.083 million at the end of 2021[19] Business Operations - The company has not yet reached a definitive agreement with a specific target company for an initial business combination[66] - The company has not engaged in any revenue-generating operations to date and has only incurred organizational and due diligence expenses since its inception[69] - The company intends to focus on Israeli technology-based life science businesses for its initial business combination[29] Financing and Capital Structure - The Company issued and sold 12,650,000 units at an offering price of $10.00 per unit, raising a total of $126,500 thousand in the Initial Public Offering[48] - The Company is authorized to issue up to 500,000,000 Class A ordinary shares, of which 12,650,000 have been issued as part of the Units sold[53] - The Company has no Preference shares issued and outstanding as of June 30, 2022[57] - The Company signed an administrative services agreement with the Sponsor for $10 thousand per month for office space and utilities[62] - The Company has a convertible promissory note allowing it to borrow up to $450 thousand from the Sponsor to finance costs related to its Business Combination[63] - The Company will pay an additional fee of 3.5% ($4,428 thousand) of the gross proceeds of the Public Offering upon completion of the initial Business Combination[64] - The company has secured up to $450,000 in loans from its sponsor and affiliates to fund working capital deficiencies and transaction costs related to the initial business combination[73] Going Concern and Risks - 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[39] - The company has expressed substantial doubt about its ability to continue as a going concern if it cannot complete a business combination within 18 months of the IPO[93] - The company faces potential adverse effects on business combinations due to ongoing macro-economic disruptions, including geopolitical issues like Russia's invasion of Ukraine[96] - Changes in SEC rules regarding special purpose acquisition companies (SPACs) may increase the costs and time required to complete initial business combinations[98] - Proposed SEC rules could impose additional financial statement requirements and liabilities on SPACs, potentially affecting their operational flexibility[99] Liquidity and Future Needs - The company anticipates liquidity requirements of approximately $400,000 for legal and accounting expenses, $300,000 for regulatory fees, and $180,000 for administrative services during the pre-business combination period[77] - The company may need additional financing to operate the combined entity post-business combination, which is subject to market conditions[81] - There is a deferred underwriting fee of $4,427,500 payable upon the consummation of the initial business combination[83] - The company has no off-balance sheet financing arrangements or long-term liabilities other than monthly fees for office space and administrative services[82][83] Investment and Risk Management - The funds in the trust account are invested in U.S. government treasury bills or money market funds, minimizing exposure to interest rate risk[86] - The weighted average of Class A ordinary shares subject to possible redemption remained at 12,650,000 shares[21]