Financial Performance - As of September 30, 2023, the company reported a net income of $254,297, primarily from interest income of $621,793 and a change in fair value of warrant liabilities of $1,824, offset by operating expenses of $259,829[120]. - For the nine months ended September 30, 2023, the company achieved a net income of $1,224,868, with interest income totaling $2,550,909, while incurring operating expenses of $715,665[121]. - For the nine months ended September 30, 2022, the net loss was $294,551, influenced by interest earned on investments of $696,468 and changes in fair value of warrant liabilities of $80,370[131]. Trust Account and IPO - The company had a total of $116,725,000 placed in a trust account from the IPO proceeds, which was invested in U.S. government securities[128]. - The company completed its IPO on December 9, 2021, raising gross proceeds of $100,000,000 from the sale of 10,000,000 units[124]. - The Company intends to utilize substantially all funds in the Trust Account to complete its initial Business Combination, with remaining proceeds allocated for working capital and growth strategies[133]. - As of September 30, 2023, cash and investments held in the Trust Account amounted to $51,409,210, down from $118,408,969 as of December 31, 2022[132]. Business Combination and Extensions - The company has extended the termination date for completing a business combination to December 9, 2023, with deposits of $390,000 for three-month extensions and $130,000 for one-month extensions[111][113][114][115][116][117]. - The Company has until December 9, 2023, to consummate an initial Business Combination, after which mandatory liquidation may occur if no extension is requested[142]. - The company redeemed approximately 6,756,695 shares of common stock for cash at an approximate price of $10.35 per share, totaling around $69.92 million[111]. Cash Flow and Operating Activities - Cash used in operating activities for the nine months ended September 30, 2023, was $1,174,478, influenced by interest earned and changes in fair value of warrant liabilities[130]. - As of September 30, 2023, the Company had $137,073 in cash held outside the Trust Account, an increase from $81,763 as of December 31, 2022[134]. - The Company has entered into multiple promissory notes totaling $1,340,000 for extension fees, all of which have been fully borrowed as of September 30, 2023[149]. - The aggregate amount owed in connection with promissory notes, including accrued interest, was $1,373,376 as of September 30, 2023[149]. - There are no outstanding working capital loans as of September 30, 2023, and the terms for any future loans have not been determined[135]. Internal Controls and Compliance - The company identified a material weakness in its disclosure controls related to the restatement of financial statements, specifically concerning the reclassification of private warrants[157]. - As of September 30, 2023, the company's disclosure controls and procedures were deemed ineffective due to issues with timely tax return filings and revisions to earnings per share for the three and nine months ended September 30, 2022[157]. - The company does not expect its disclosure controls and procedures to prevent all errors and instances of fraud, acknowledging inherent limitations[158]. - There were no changes in internal control over financial reporting during the most recent fiscal quarter that materially affected the company's internal control[159]. - The company plans to enhance processes to better evaluate complex accounting standards applicable to its unaudited condensed consolidated financial statements[159]. - The remediation plan for improving internal controls will take time, and the company cannot assure that these initiatives will achieve the intended effects[159]. Company Classification - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[150].
Globalink Investment Inc.(GLLIU) - 2023 Q3 - Quarterly Report