DigiAsia Corp.(FAAS) - 2022 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2022, the company reported a net income of $1,239,550, primarily from investment income of $911,773 and a decrease in fair value of warrants of $620,000 [114]. - For the nine months ended September 30, 2022, the company achieved a net income of $8,631,943, with significant contributions from investment income of $1,204,892 and a decrease in fair value of warrants amounting to $8,192,000 [115]. - Cash used in operating activities for the nine months ended September 30, 2022, was $498,983, reflecting adjustments for changes in fair value of warrant liabilities and prepaid expenses [121]. Financial Position - As of September 30, 2022, the company held cash and marketable securities of $203,211,194 in the trust account, intended for business combination purposes [123]. - As of September 30, 2022, the company had $171,539 in its operating bank accounts and working capital of $63,489 [124]. - The company has no long-term debt or off-balance sheet arrangements as of September 30, 2022 [128]. Business Combination and Costs - The company incurred transaction costs of $13,577,812 related to its IPO, including $4,000,000 in underwriting fees and $9,000,000 in deferred underwriting fees [120]. - The company expects to incur significant costs in pursuing its acquisition plans and may need to raise additional funds to meet operational expenditures [124]. - The company has until January 20, 2023, to complete a business combination, after which it faces mandatory liquidation if not completed [127]. Accounting and Reporting - The company accounts for warrants based on specific terms, assessing whether they are classified as equity or liabilities, which impacts financial reporting [136]. - Net income per share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding, with diluted net income per share being the same as basic net income per share due to the contingent nature of warrants [139]. - The Company adopted ASU 2020-06 on January 1, 2021, which simplifies accounting for convertible instruments and has no impact upon adoption [140]. - ASU 2022-03 clarifies that contractual sales restrictions are not considered in measuring equity securities at fair value, with new disclosure requirements introduced [141]. - The amendments in ASU 2022-03 are effective for fiscal years beginning after December 15, 2023, and the Company is considering its impact on financial statements [143]. - The Company is classified as a smaller reporting company, thus certain market risk disclosures are not applicable [144].