Financial Position - As of September 30, 2022, total assets amounted to $130.625 million, a slight increase from $130.615 million as of December 31, 2021[17] - Current assets decreased to $797 thousand from $1.308 million as of December 31, 2021, primarily due to a reduction in cash and cash equivalents[17] - The accumulated deficit increased to $3.741 million as of September 30, 2022, from $3.083 million at the end of 2021[17] - Cash held in the trust account increased to $129.802 million as of September 30, 2022, compared to $129.032 million as of December 31, 2021[17] - As of September 30, 2022, the company had approximately $464,000 in cash and $661,000 in working capital, down from $975,000 and $1,068,000 respectively as of December 31, 2021[72] Earnings and Income - The company reported a net earning of $403 thousand for the three months ended September 30, 2022, compared to a net loss of $20 thousand for the same period in 2021[19] - Interest income for the nine months ended September 30, 2022, was $770 thousand, with no interest income reported for the same period in 2021[19] - As of September 30, 2022, the Company reported a net loss attributable to Class A ordinary shareholders of $525 thousand for the nine months ended[62] - Basic and diluted earnings per Class A ordinary share for the nine months ended September 30, 2022, was $0.02[62] Initial Public Offering (IPO) - 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[34] - 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[49] - The net proceeds from the initial public offering and private warrants totaled $130,142,000, with $129,030,000 deposited into a non-interest-bearing trust account[78] - The Company has authorized up to 500,000,000 Class A ordinary shares, of which 12,650,000 have been issued as part of the Public Offering[54] Business Combination Plans - The Company intends to focus on Israeli technology-based life science businesses for its initial business combination[30] - The Company has not yet reached a definitive agreement with a specific target company for an initial business combination[70] - The Company intends to utilize cash from the IPO proceeds, new financing, and potential debt financing to effectuate its initial business combination[70] - The Company has until May 2, 2023, to complete an Initial Business Combination, or it will face mandatory liquidation[40] Financial Liabilities and Costs - The Company has a deferred underwriting compensation liability of $4,428 thousand, payable upon completion of the Initial Business Combination[67] - The Company paid an underwriting commission of $2,530 thousand, which is 2.0% of the gross proceeds from the Public Offering[53] - The company is obligated to pay a deferred underwriting fee of $4,427,500 upon the consummation of its initial business combination transaction[85] - 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[66] - The company has secured up to $450,000 in loans from its sponsor to fund potential working capital deficiencies leading up to the initial business combination[77] Operational Challenges - The company has not engaged in any revenue-generating operations to date and has only incurred expenses related to organizational activities and due diligence for potential business combinations[73] - The company expects to incur significant costs in pursuit of its acquisition plans and cannot assure the success of its initial business combination or related capital-raise[74] - The company anticipates needing additional financing to operate the combined company following the initial business combination, which may be challenging given the current market conditions[83] - 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 its initial public offering[95] Economic and Regulatory Environment - The company is facing adverse impacts from unfavorable macro-economic trends, including supply chain delays and rising shipping costs due to the ongoing geopolitical situation, which have contributed to global inflationary pressures[96] - High global inflation rates have prompted governments and central banks to raise interest rates, potentially inhibiting economic activity and access to capital markets, which may lead to a recession[96] - The company’s ability to consummate a potential business combination may be materially affected by these deteriorating economic conditions, impacting access to financing[97] - Changes in SEC rules regarding special purpose acquisition companies (SPACs) could increase the costs and time required to negotiate and complete an initial business combination[99] - Proposed SEC rules may impose additional compliance costs and constraints on the company’s ability to complete business combinations, affecting operational strategies[100] Miscellaneous - The company has incurred operating expenses of $648,000 following the IPO, leaving a cash balance of $464,000 as of September 30, 2022[78] - There are no off-balance sheet financing arrangements as of September 30, 2022, and the company does not participate in transactions that create relationships with unconsolidated entities[84] - The company’s IPO was declared effective on October 28, 2021, with no material change in the expected use of proceeds as described in the final prospectus[101]
Cactus Acquisition Corp. 1 Ltd.(CCTSU) - 2022 Q3 - Quarterly Report