Financial Performance - As of March 31, 2024, the company reported a net loss of $375,307, primarily due to operating expenses of $603,471 and interest expense of $33,395 [122]. - For the three months ended March 31, 2023, the company had a net income of $682,939, driven by interest income of $1,257,477 from investments held in the Trust Account [123]. - Cash used in operating activities for the three months ended March 31, 2024, was $885,807, compared to $79,619 for the same period in 2023 [129][130]. Cash and Investments - The company had cash held in the Trust Account of $29,047,273 as of March 31, 2024, with interest income of $342,667 for the quarter [131]. - As of March 31, 2024, the company had $6,878 in cash held outside of the Trust Account, down from $79,073 as of December 31, 2023 [134]. - The company intends to use substantially all funds in the Trust Account to complete its business combination, with remaining proceeds allocated for working capital [132]. Business Combination and Extensions - The company has extended the deadline to complete its initial business combination to June 9, 2024, with the possibility of further extensions up to December 9, 2024 [120]. - The Company has until June 9, 2024, to consummate a business combination, with a possible extension to December 9, 2024 [146]. - If the initial business combination is not consummated, the Company may need to raise additional capital through loans or investments, which may not be guaranteed [145]. Debt and Liabilities - The company has no working capital loans outstanding as of March 31, 2024, despite having entered into promissory notes totaling $640,000 for extension fees [135][136]. - As of March 31, 2024, the total amount owed in connection with promissory notes was $2,640,649, including accrued interest [160]. - The Company entered into multiple promissory notes with Public Gold Marketing Sdn Bhd, totaling $1,660,000 for working capital and extension fees, all of which had been fully borrowed by March 31, 2024 [139][140][143][144][152][153]. - The promissory notes bear an interest rate of 6% per annum and are repayable upon consummation of an initial business combination [139][140][143][144]. - The Company has no long-term debt, capital lease obligations, or long-term liabilities as of March 31, 2024 [149]. IPO and Offering Costs - The company generated gross proceeds of $100,000,000 from its IPO, selling 10,000,000 units at $10.00 per unit [124]. - The company incurred offering costs of $6,887,896 related to the IPO and the exercise of the underwriters' over-allotment option [126]. - The underwriters are entitled to a deferred underwriting discount of $4,025,000 from the closing of the IPO, payable only if the Company completes an initial business combination [150]. Internal Controls and Compliance - The company identified a material weakness in its disclosure controls related to the reclassification of private warrants and timely tax return filings, concluding that its disclosure controls and procedures were not effective as of March 31, 2024 [168]. - There were no changes in the internal control over financial reporting during the most recent fiscal quarter that materially affected the internal control [170]. - The company plans to enhance processes to better evaluate complex accounting standards, including providing increased access to accounting literature and improved communication among personnel [170]. Going Concern and Growth Status - The Company intends to complete a business combination before the mandatory liquidation date to avoid substantial doubt about its ability to continue as a going concern [146]. - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [160].
Globalink Investment Inc.(GLLIU) - 2024 Q1 - Quarterly Report