Financial Position - As of March 22, 2023, approximately $80.2 million was held in the trust account, with $37.7 million remaining after the redemption of 4,097,964 shares at a price of $10.38 per share, totaling about $42.5 million in redemptions [118]. - As of March 31, 2023, the company had cash and marketable securities of $80,615,246 in the trust account, intended for business combination completion [143]. - The company had operating cash of $137,596 and restricted cash of $213,182 outside the trust account as of March 31, 2023 [144]. - The outstanding balance under promissory notes as of March 31, 2023, was $1,670,537, compared to $1,545,537 as of December 31, 2022 [153]. - The company issued three promissory notes totaling $1,670,537 to the Sponsor, all bearing no interest and payable upon the consummation of the initial business combination [156][157][158]. - The company does not have any long-term debt, capital lease obligations, or operating lease obligations as of March 31, 2023 [154]. - The company may need additional financing to complete the business combination or to redeem public shares, which could involve issuing additional securities or incurring debt [145][146]. - The company does not participate in off-balance sheet arrangements and has no obligations or liabilities considered off-balance sheet as of March 31, 2023 [154]. Operating Results - The Company reported a net loss of $230,201 for the three months ended March 31, 2023, primarily due to operating expenses of $858,322 and taxes, offset by interest income of $845,090 [133]. - The Company had a net loss of $569,282 for the three months ended March 31, 2022, with operating expenses of $527,059 and interest income of $7,777 [134]. - The Company has not generated any operating revenues to date and does not expect to do so until after completing its initial business combination [132]. IPO and Offering Costs - The Company generated gross proceeds of $75 million from its IPO of 7,500,000 units, with an additional $3.475 million from the sale of 347,500 private placement units [135][137]. - Offering costs for the IPO amounted to $4,663,218, including $1,500,000 in underwriting fees and $2,625,000 in deferred underwriting fees [140]. - The underwriters received a cash underwriting discount of $0.20 per unit, totaling $1,545,537 at the IPO closing, with deferred commissions of $0.35 per unit, amounting to $2,704,690 [155]. Merger and Acquisition Plans - The Merger Agreement with WaveTech Group, Inc. values WaveTech at a pre-money enterprise valuation of $150 million, with a conversion of shares based on a $10.00 price per share of the Company Common Stock [119]. - The Merger Agreement Amendment extended the time for consummating the merger to April 30, 2023, subject to certain conditions [122]. - The Company expects to incur significant costs related to its acquisition plans and does not guarantee the success of its business combination efforts [117]. Accounting and Reporting - The company recognizes changes in the redemption value of common stock subject to possible redemption immediately as they occur, adjusting the carrying value accordingly [159]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [164]. - Cash provided by operating activities for the period ended March 31, 2023, was $42,464,315, while net cash used in financing activities was $42,511,600, mainly due to stockholder redemptions [141].
Welsbach Technology Metals Acquisition Corp.(WTMAU) - 2023 Q1 - Quarterly Report