Financial Position - As of March 31, 2024, the cash held in the Trust Account was $46,889,042, including $3,480,568 of interest income[155]. - As of March 31, 2024, the company had cash of $35,147 held outside the Trust Account for operational purposes[156]. - The Company had $613,500 outstanding under the Second Promissory Note, with an additional $490,000 borrowed subsequently[167]. Operating Performance - For the three months ended March 31, 2024, the company reported a net loss of $3,902,244, primarily due to a change in fair value of warrant liabilities of $2,077,000 and operating costs of $2,408,551[148]. - The company had cash used in operating activities of $336,380 for the three months ended March 31, 2024, compared to $310,621 for the same period in 2023[153][154]. - The Company incurred expenses related to being a public company, including legal and financial reporting costs, without generating any operating revenues to date[147]. Capital Transactions - The company completed the sale of 23,000,000 units at $10.00 per unit, generating gross proceeds of $230,000,000 during its IPO[151]. - Approximately $21.87 million was removed from the Trust Account to pay shareholders who redeemed their Class A ordinary shares[145]. - The underwriter received a cash underwriting discount of $4,600,000, including $600,000 from the full exercise of the over-allotment option[164]. - The Company entered into a forward purchase agreement for up to $30,000,000 in aggregate, but the Cartica Funds decided not to approve the purchase of any forward purchase shares[165]. - The Company issued the Extension Note for up to $360,000 to extend the termination date to January 7, 2025, with $40,000 deposited monthly into the Trust Account[168]. Compliance and Regulatory Matters - The company received a Nasdaq Delisting Notice due to non-compliance with the Minimum Total Holders Rule, with a hearing scheduled for May 23, 2024[146]. - The company has until January 7, 2025, to complete a Business Combination, or it will face mandatory liquidation[160]. Accounting and Reporting - The estimated fair value of warrant liabilities is a critical accounting estimate, reflecting management's assumptions about market participant pricing[172]. - The Company has not opted out of the extended transition period for new accounting standards, allowing it to adopt standards when private companies do[180]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[179]. - The Company does not believe that recently issued accounting standards will have a material impact on its financial statements[178]. Debt Obligations - The Second Promissory Note was amended to increase the principal sum from up to $750,000 to up to $1,250,000 in April 2024[144][157]. - The Company incurred $320,333 in fees for administrative services for the year ended December 31, 2023, and $50,000 for the three months ended March 31, 2024[162]. - As of March 31, 2024, there were 27,400,000 warrants issued and outstanding, with 11,500,000 classified as Level 1 and 15,900,000 as Level 3 in the fair value hierarchy[174].
Cartica Acquisition Corp(CITEU) - 2024 Q1 - Quarterly Report