Financial Performance - For the three months ended June 30, 2023, the company reported a net loss of $3,752,723, which included a $3,249,935 loss on the change in fair value of warrant liabilities and $2,885,101 in formation and operating costs[127]. - The company had a net loss of $5,869,034 for the six months ended June 30, 2023, consisting of a $5,264,750 loss on the fair value of warrant liabilities and $6,595,415 in formation and operating costs[127]. - The company has not generated any operating revenues to date and relies on non-operating income from interest on cash and cash equivalents[126]. Business Combination - The company entered into a business combination agreement with Orca Holdings Limited on April 25, 2023, with the transaction expected to close in the second half of 2023[122][124]. - The business combination will involve the contribution of all issued and outstanding OpSec Ordinary Shares in exchange for $10,000,000 in cash and Pubco Ordinary Shares[123]. - The company anticipates using substantially all funds held in the trust account to complete its initial business combination[132]. Financial Position - The net proceeds from the IPO and private placement warrants amounted to $351,900,000 after deducting offering expenses and underwriting commissions[131]. - As of June 30, 2023, the company had approximately $234,234 available outside the trust account for operational expenses and due diligence on target businesses[133]. - The total amount outstanding under the loan for working capital as of June 30, 2023, was $2,000,000[136]. - As of June 30, 2023, the company did not have any off-balance sheet arrangements[146]. Expenses and Liabilities - The underwriter is entitled to a deferred fee of $12,075,000, payable only upon the completion of a Business Combination[148]. - The company incurred $780,000 in advisory fees, with $500,000 accrued in Accounts Payable and Accrued Expenses as of June 30, 2023[150]. - The company expects to incur significant expenses related to enhancing internal controls to meet regulatory requirements[145]. Going Concern and Risks - Management has raised substantial doubt about the company's ability to continue as a going concern if a business combination is not completed[141]. - The company may face adverse effects on operations due to economic uncertainties, including inflation and geopolitical instability[157]. Regulatory and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[151]. - The company has assessed its internal control over financial reporting and concluded it was effective as of June 30, 2023[163]. - The company has not engaged in any hedging activities since inception and does not expect to do so[159]. - The company has not reported any legal proceedings as of the latest fiscal quarter[165].
Investcorp Europe Acquisition Corp I(IVCBU) - 2023 Q2 - Quarterly Report