Financial Performance - Net income for the three months ended February 28, 2023, was $483,228, compared to a net loss of $195,550 for the same period in 2022, indicating a turnaround in profitability[7] - Basic and diluted net income per ordinary share was $0.04 for the three months ended February 28, 2023, compared to a loss of $0.02 in the prior year[7] - For the three months ended February 28, 2023, the net income was $483,228, compared to a net loss of $195,550 for the same period in 2022[9] - For the three months ended February 28, 2023, net income allocable to redeemable Class A ordinary shares was $360,052, compared to a net loss of $125,854 for the same period in 2022[55] - The weighted average number of Class A ordinary shares increased to 8,217,709 from 5,214,083 year-over-year, resulting in a basic and diluted net income per redeemable Class A ordinary share of $0.04, up from a loss of $0.02[55] Assets and Liabilities - Total assets decreased from $118,543,290 on November 30, 2022, to $33,030,870 on February 28, 2023, representing a decline of approximately 72%[5] - Current liabilities increased from $104,848 to $463,085, marking a rise of about 341%[5] - Cash and marketable securities held in trust account decreased from $118,051,997 to $32,811,107, a reduction of approximately 72%[5] - Total liabilities increased from $4,129,848 to $4,488,085, an increase of approximately 9%[5] - As of February 28, 2023, the Company had approximately $207,763 in cash and a working capital deficit of approximately $(243,322)[31] Cash Flow and Operating Activities - Cash used in operating activities was $283,530 for the three months ended February 28, 2023, an increase from $162,238 in the same period of 2022[9] - The total cash at the end of the period was $207,763, down from $730,020 at the end of the same period in 2022[9] - The Company had cash used in operating activities of $283,530 for the three months ended February 28, 2023[101] Initial Public Offering (IPO) - The company generated gross proceeds of $100,000,000 from its Initial Public Offering on January 20, 2022[12] - The total costs associated with the Initial Public Offering were $8,482,742, including $1,800,000 in underwriting fees[13] - The company sold 11,500,000 Units at a price of $10.00 per Unit during the Initial Public Offering, generating gross proceeds of $115,000,000[60] - The private placement generated gross proceeds of $5,325,000 from the sale of 532,500 Private Placement Units at $10.00 each[61] Business Combination and Trust Account - The company must complete a Business Combination with a fair market value equal to at least 80% of the net assets held in the Trust Account[18] - The Trust Account held $116,725,000 from the net proceeds of the Initial Public Offering and Private Placement[16] - The Trust Account held assets amounting to $32,811,107 as of February 28, 2023, down from $118,051,997 as of November 30, 2022[45] - The company will redeem Public Shares at a price equal to the aggregate amount in the Trust Account if a Business Combination is not completed within the specified Combination Period[25] Financial Position and Concerns - The Company does not currently have adequate liquidity to sustain operations, raising substantial doubt about its ability to continue as a going concern for the next year[37] - The Company is within 12 months of its mandatory liquidation, raising substantial doubt about its ability to continue as a going concern[106] - The Company has incurred significant costs in pursuit of its acquisition plans and expects to have negative cash flows from operations until the completion of its initial business combination[35] Shareholder and Share Information - As of February 28, 2023, 3,126,068 Class A Ordinary Shares are outstanding and subject to possible redemption at a value of $10.15 per share[50] - The Company has authorized the issuance of 479,000,000 Class A ordinary shares, with 532,500 shares issued and outstanding as of February 28, 2023[76] - The company has a total of 2,875,000 Class B ordinary shares issued and outstanding, ensuring Initial Shareholders maintain at least 20% ownership post-IPO[79] Costs and Expenses - Formation and operating costs for the three months ended February 28, 2023, were $(301,530), up from $(196,096) in the same period last year, indicating higher operational expenses[7] - The Company incurred formation and operating costs of $301,530 for the three months ended February 28, 2023[99] Financing and Loans - The Sponsor has promised to loan up to $656,474 to the Company, with $328,237 already paid as of February 21, 2023[29] - The Company may need to obtain additional financing to complete its initial business combination or to redeem a significant number of Public Shares[105] Internal Controls and Risk Factors - As of February 28, 2023, the company's disclosure controls and procedures were evaluated as effective by the principal executive and financial officers[112] - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the fiscal quarter ended February 28, 2023[113] - No material changes to the risk factors disclosed in the Annual Report on Form 10-K filed on March 1, 2023, were noted[115]
Technology & Telecommunication Acquisition Corporation(TETEU) - 2023 Q1 - Quarterly Report