Financial Performance - As of June 30, 2024, the company reported a net loss of $217,185, primarily due to operating expenses of $419,611 and interest expense of $43,602, partially offset by interest income of $344,645 from the Trust Account[134]. - For the six months ended June 30, 2024, the company had a net loss of $592,492, with general and administrative expenses totaling $1,023,082 and interest income of $687,312 from the Trust Account[135]. - The company generated a net income of $287,632 for the three months ended June 30, 2023, driven by interest income of $671,639 from the Trust Account[136]. - For the six months ended June 30, 2023, cash used in operating activities was $1,039,268, with a net income of $970,571[144]. IPO and Trust Account - The company completed its IPO on December 9, 2021, raising gross proceeds of $100,000,000 from the sale of 10,000,000 units at $10.00 per unit[138]. - Following the IPO, $116,725,000 was placed in the Trust Account, initially invested in U.S. government securities[141]. - As of June 30, 2024, cash held in the Trust Account was $29,281,763, with interest income of $687,312 for the six months ended June 30, 2024[146]. - The Company intends to use substantially all funds in the Trust Account to complete a business combination, with remaining proceeds for working capital or acquisitions[147]. Business Combination and Capital Raising - The company has extended the deadline to complete its initial business combination to September 9, 2024, with the possibility of further extensions up to December 9, 2024[126]. - A Merger Agreement was entered into on January 30, 2024, for a business combination with Alps Holdco, which will involve a two-step merger process[128]. - The company plans to raise additional capital through a PIPE Investment, agreeing to issue shares at $10.00 per share for a total of $40,000,000[130]. - If the initial business combination is not consummated, the Company may need to raise additional capital, which could impact liquidity and operations[161]. Promissory Notes and Liabilities - The Company has entered into multiple promissory notes totaling $2,390,000 for extension fees and working capital, all of which have been fully borrowed as of June 30, 2024[150][151][152][153][154][156][157][158][159][160]. - As of June 30, 2024, the total amount owed in connection with promissory notes was $3,384,252, including accrued interest[178]. - The company entered into a promissory note subscription term sheet for $400,000 at an interest rate of 6% per annum, fully borrowed as of June 30, 2024[177]. - There are no off-balance sheet arrangements or long-term liabilities as of June 30, 2024[164][165]. Internal Controls and Compliance - Management identified a material weakness in internal controls related to the restatement of financial statements, affecting the effectiveness of disclosure controls and procedures[188]. - The company plans to enhance processes to better evaluate and apply accounting requirements over time[190]. - Management does not expect recently issued accounting standards to materially affect the financial statements as of June 30, 2024[185]. - There were no changes in internal control over financial reporting that materially affected the company during the most recent fiscal quarter[190]. Legal and Regulatory Matters - The company has no legal proceedings pending as of the report date[191]. - The underwriters are entitled to a deferred underwriting discount of $4,025,000, payable only if the Company completes an initial business combination[166]. - Chardan Capital Markets, LLC has a right of first refusal for future public and private equity and debt offerings for 18 months post-initial business combination[167]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[180]. - The company is evaluating the benefits of relying on reduced reporting requirements provided by the JOBS Act[181].
Globalink Investment Inc.(GLLIU) - 2024 Q2 - Quarterly Report