Healthcare AI Acquisition Corp.(HAIAU) - 2022 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2022, the company reported a net income of $7,702,242, which included a decrease in fair value of warrant liability of $7,956,318 [129]. - The company recognized $30,000 for administrative support services expense for the three months ended March 31, 2022 [131]. - The company has not generated any operating revenues to date and will only generate non-operating income post-Initial Public Offering [128]. Initial Public Offering (IPO) - The company completed its Initial Public Offering (IPO) on December 14, 2021, raising gross proceeds of $200 million from the sale of 20 million units at $10.00 per unit [107]. - An additional $15.62 million was generated from the partial exercise of the over-allotment option, bringing total gross proceeds to approximately $215.62 million [107]. - The underwriters received a cash underwriting discount of $0.20 per Unit, totaling $4,312,480, upon the closing of the Initial Public Offering and Over-Allotment [136]. - The underwriters have a deferred fee of $0.35 per Unit, amounting to $7,546,840, payable only if the company completes an initial business combination [136]. Trust Account and Capital Management - The company placed $219.94 million in a trust account, with $10.20 per unit allocated for future business combinations [110]. - As of March 31, 2022, the company had $1.05 million in its operating bank account and working capital of approximately $837,395 [123]. - The company anticipates that cash held outside the trust account may not be sufficient to sustain operations for the next 12 months if a business combination is not completed [125]. - The company can raise additional capital through working capital loans from initial shareholders or third-party loans, but there is no obligation for them to provide such funding [127]. Business Combination Requirements - The company must complete an initial business combination with a fair market value of at least 80% of the net assets held in the trust account [112]. - If the company fails to complete a business combination by June 14, 2023, it will redeem public shares at a price of $10.20 per share [118]. - The initial shareholders have agreed to waive their liquidation rights concerning founder shares if the company does not complete a business combination within the specified period [119]. Expenses and Financial Outlook - The company expects to incur increased expenses post-Initial Public Offering due to legal, financial reporting, and compliance costs [128]. - The company has incurred transaction costs of $12.93 million, including $4.31 million in underwriting discounts and $7.55 million in deferred underwriting discounts [109]. - The company has no long-term debt obligations or off-balance sheet arrangements as of March 31, 2022 [130][147]. - The company does not believe inflation had a material impact on its business or operating results during the reported period [148]. - The company is classified as an "emerging growth company" and is exempt from certain reporting requirements under the JOBS Act [149]. Shareholder Information - The company has 21,562,401 Class A ordinary shares presented at redemption value as temporary equity as of March 31, 2022 [140].