Financial Performance - Net earnings for the period increased to $1,286,000 in the six months ended June 30, 2023, compared to a net loss of $289,000 in the same period of 2022[17]. - Operating expenses rose to $803,000 in the six months ended June 30, 2023, up from $183,000 in 2022, representing a 338.8% increase[17]. - The accumulated deficit increased from $4,052,000 in 2022 to $4,935,000 in 2023, reflecting a worsening financial position[13]. - The net loss attributable to Class A ordinary shares for the three months ended June 30, 2023, was $(591) thousand, with a basic and diluted loss per share of $(0.02)[79]. Assets and Liabilities - Total current assets decreased from $518,000 in 2022 to $273,000 in 2023, a decline of 47.4%[13]. - Cash held in trust account decreased significantly from $130,893,000 in 2022 to $24,161,000 in 2023, a drop of 81.5%[13]. - Total liabilities increased from $4,570,000 in 2022 to $5,208,000 in 2023, an increase of 13.9%[13]. Cash Flow and Financing - The company reported a cash flow from operating activities of $1,839,000 for the six months ended June 30, 2023, compared to a cash outflow of $255,000 in 2022[22]. - The redemption of Class A ordinary shares amounted to $108,901,000 in the financing activities for the six months ended June 30, 2023[24]. - The Company raised a total of $126.5 million from its Public Offering, with $129.03 million placed in a Trust Account[33]. - The Company drew down $250,000 from a $450,000 promissory note to finance operations[40]. - The Company drew down $250 thousand from a $450 thousand promissory note in May 2023, with the remaining $200 thousand drawn in August 2023[85][87]. Shareholder Information - The weighted average of Class A ordinary shares subject to possible redemption was 9,000,141 for the six months ended June 30, 2023[17]. - A total of 10,185,471 Class A ordinary shares were redeemed during the Extension, leaving 2,464,529 Class A ordinary shares outstanding[47]. - As of June 30, 2023, the Company issued and sold a total of 12,650,000 Class A ordinary shares for an aggregate consideration of $126,500 thousand, with redemptions reducing the amount to 2,260,351 shares outstanding[67]. - The Company is authorized to issue up to 500,000,000 Class A ordinary shares and 50,000,000 Class B ordinary shares, with 3,162,500 Class B shares outstanding as of June 30, 2023[66][72]. - Class B ordinary shares are convertible into Class A ordinary shares on a one-to-one basis at any time or automatically upon the business combination[69]. Business Strategy and Compliance - The Company aims to focus on Israeli technology-based life science businesses for potential mergers or acquisitions[29]. - The Company extended the deadline for consummating an Initial Business Combination from May 2, 2023, to November 2, 2023[39]. - The Company received a notice from Nasdaq regarding non-compliance with the market value listing rule, requiring a market value of at least $50 million by December 26, 2023[52][53]. - The Sponsor committed to contribute up to $240,000 to the Trust Account to support operations until the business combination is completed[49]. - The Company has substantial doubt about its ability to continue as a going concern if a business combination is not completed by the Mandatory Liquidation Date[40]. Underwriting and Compensation - The Company paid an underwriting commission of 2.0% of the gross proceeds from the Public Offering, totaling $2,530 thousand[65]. - The Company recognized a deferred underwriting compensation of 3.5% ($4,428 thousand) of the gross proceeds from the Public Offering, payable upon completion of the initial Business Combination[86]. - The Sponsor purchased 4,866,667 Private Warrants at a price of $1.50 per warrant, totaling approximately $7.3 million[60]. Investment and Risk Management - The Company has invested net proceeds from the initial public offering in U.S. government treasury bills or money market funds, minimizing exposure to interest rate risk[115].
Cactus Acquisition Corp. 1 Ltd.(CCTSU) - 2023 Q2 - Quarterly Report