Financial Performance - For the three months ended March 31, 2023, the company reported a net income of $2,064,273, primarily from interest income of $2,559,463 on marketable securities[116]. - The company incurred operating and formation costs of $495,190 during the same period, impacting net income[116]. - The company incurred $155,000 in fees for administrative support services for the three months ended March 31, 2023[127]. - The company has not generated any operating revenues to date and does not expect to until after completing a business combination[115]. Cash and Securities - As of March 31, 2023, the company had cash and marketable securities in the Trust Account totaling $242,673,094, including $5,773,094 of interest income[121]. - As of March 31, 2023, the company had cash of $769,508 available for operational activities and identifying target businesses[122]. - The company has no outstanding borrowings under Working Capital Loans as of March 31, 2023[123]. Business Combination - The company has until July 7, 2023, to complete a business combination, with a potential extension period available[114]. - If a business combination is not completed by the deadline, the company will liquidate and redeem public shares at a price equal to the amount in the Trust Account[114]. Shareholder Equity - As of March 31, 2023, the company had 27,400,000 warrants issued and outstanding[134]. - The company accounts for ordinary shares subject to possible redemption as temporary equity, reflecting uncertain future events[134]. - The company applies the two-class method for calculating net income per ordinary share, excluding accretion associated with redeemable shares[135]. Tax Implications - The company may be subject to a 1% U.S. federal excise tax on redemptions of common stock in connection with an initial Business Combination[147]. - The Inflation Reduction Act of 2022 imposes a 1% excise tax on stock repurchases, applicable from 2023 onwards[148]. - The company, incorporated as a Cayman Islands exempted company, is not expected to be subject to the excise tax for redemptions of Class A ordinary shares[149]. - The extent of the excise tax incurred will depend on various factors, including the fair market value of redeemed stock[150]. - The imposition of the excise tax could reduce cash available for redemptions or contributions to the target business in an initial Business Combination[150]. Regulatory and Reporting Status - The company is classified as an "emerging growth company," allowing it to take advantage of certain reporting exemptions[138]. - The adoption of ASU 2020-06, effective after December 15, 2023, is not expected to impact the company's financial position or results[136]. IPO Details - The company completed its IPO on January 7, 2022, raising gross proceeds of $230.0 million from the sale of 23,000,000 units at $10.00 per unit[110].
Cartica Acquisition Corp(CITEU) - 2023 Q1 - Quarterly Report