Financial Performance - For the three months ended June 30, 2023, the company reported a net income of $3,021,243, primarily from interest income of $2,914,130 on marketable securities[149]. - The company had a net income of $5,085,516 for the six months ended June 30, 2023, with interest income of $5,473,593 contributing significantly[151]. - The company incurred operating and formation costs of $655,107 for the three months ended June 30, 2023[149]. - The company has not generated any operating revenues to date and does not expect to do so until after completing a business combination[147]. Cash and Securities - As of June 30, 2023, the company had cash and marketable securities in the Trust Account totaling $245,587,224, including $8,687,224 of interest income[156]. - As of June 30, 2023, the company had cash of $211,340 available for operational activities and identifying target businesses[157]. Business Combination and Deadlines - The company extended the deadline to complete a business combination to April 7, 2024, with shareholders redeeming 18,785,585 Class A ordinary shares for approximately $200.9 million[146]. - Management has raised substantial doubt about the company's ability to continue as a going concern if a business combination is not consummated by April 7, 2024[160]. Administrative and Operating Costs - The company entered into an agreement to pay the Sponsor a total of $930,000 over eighteen months, which includes an annual salary of $312,000 for the CEO and $200,000 for the COO and CFO[162]. - For the three months ended June 30, 2023, the company incurred $65,333 in fees for administrative support services, compared to $155,000 for the same period in 2022, reflecting a decrease of approximately 58%[162]. - The company incurred $220,333 in fees for administrative support services for the six months ended June 30, 2023, compared to $621,500 for the same period in 2022, indicating a decrease of approximately 65%[162]. Underwriting and Warrants - The underwriters received a cash underwriting discount of $0.20 per Unit, totaling $4,600,000, which included $600,000 from the full exercise of the over-allotment option[164]. - The underwriters are entitled to a deferred fee of $8,050,000, which will be payable only if the company completes a Business Combination[164]. - The company had 27,400,000 warrants issued and outstanding as of June 30, 2023[171]. Forward Purchase Agreement - The company entered into a forward purchase agreement for up to $30,000,000 in aggregate, but the Cartica Funds will not purchase any forward purchase shares, potentially impacting the company's ability to complete the initial Business Combination[167]. Economic and Regulatory Considerations - The company may face adverse effects on its operations due to economic uncertainties, including inflation and geopolitical instability[180]. - The company has elected not to opt out of the extended transition period under the JOBS Act, allowing it to adopt new accounting standards at the same time as private companies[178]. Earnings Per Share Calculation - The company applies the two-class method in calculating earnings per share, allocating net income pro rata to both redeemable and non-redeemable shares[174].
Cartica Acquisition Corp(CITEU) - 2023 Q2 - Quarterly Report