Financial Performance - The net income for the three months ended May 31, 2023, was $381,761, compared to a net income of $89,574 for the same period in 2022, showing a significant increase[8]. - Basic and diluted net income per ordinary share for the three months ended May 31, 2023, was $0.03, compared to $0.00 for the same period in 2022[8]. - As of May 31, 2023, the company reported a net income of $682,249 compared to a net loss of $159,276 in the same period of 2022[10]. - For the three months ended May 31, 2023, net income allocable to redeemable Class A ordinary shares was $111,445, compared to $46,553 for the same period in 2022, resulting in a basic and diluted net income per share of $0.03[54]. - For the three months ended May 31, 2023, net income allocable to Class B ordinary shares was $87,576, compared to a loss of $10,279 for the same period in 2022, with a basic and diluted net income per share of $0.03[54]. - For the six months ended May 31, 2023, the company achieved a net income of $682,249, a significant recovery from a net loss of $159,276 in the same period of 2022[95]. - For the three months ended May 31, 2023, the company reported a net income of $199,021, compared to a net income of $36,274 for the same period in 2022, reflecting an increase of 450%[95]. Assets and Liabilities - As of May 31, 2023, total current assets decreased to $67,023 from $491,293 as of November 30, 2022, representing a decline of approximately 86.4%[5]. - Cash and marketable securities held in trust account decreased to $33,685,225 as of May 31, 2023, down from $118,051,997 as of November 30, 2022, a reduction of about 71.5%[5]. - Total liabilities increased to $5,010,441 as of May 31, 2023, compared to $4,129,848 as of November 30, 2022, reflecting an increase of approximately 21.3%[6]. - The total assets decreased to $33,752,248 as of May 31, 2023, from $118,543,290 as of November 30, 2022, a decline of approximately 71.5%[5]. - Total shareholders' deficit increased to $(4,943,418) as of May 31, 2023, from $(3,638,555) as of November 30, 2022, reflecting a rise of approximately 36%[6]. - The accumulated deficit grew to $(4,943,759) as of May 31, 2023, from $(3,638,896) as of November 30, 2022, indicating an increase in losses of about 36%[6]. Cash Flow and Operating Activities - The net cash used in operating activities was $424,270, an increase from $213,058 in the prior year[10]. - The total cash at the end of the period was $67,023, down from $679,200 at the beginning of the period[10]. - The company expects to incur significant costs in pursuit of its acquisition plans and anticipates negative cash flows until the completion of its initial business combination[34]. - Cash used in operating activities for the six months ended May 31, 2023, was $424,270[97]. Business Combination and Financing - The company has not commenced any operations and will not generate operating revenues until after completing its initial business combination[13]. - 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[19]. - If a business combination is not completed within 12 months, the company will redeem public shares at a price equal to the amount in the trust account[25]. - The holders of founder shares have agreed to waive their liquidation rights if the company fails to complete a business combination within the combination period[26]. - The company may need to obtain additional financing to complete its initial business combination or to meet obligations if a significant number of Public Shares are redeemed[101]. - The company has no current commitment from any financing source to provide additional capital, raising substantial doubt about its ability to continue as a going concern[36]. - The Sponsor has promised to loan up to $656,747 and $864,000 to the Company, with an available balance of $1,520,474 as of May 31, 2023[70]. - The company may raise additional capital through loans or investments from the Sponsor or other parties, but there are no guarantees of success[35]. Initial Public Offering - The initial public offering generated gross proceeds of $100,000,000, with transaction costs amounting to $8,482,742[14][15]. - The Company completed its Initial Public Offering by selling 11,500,000 Units at a price of $10.00 per Unit, generating gross proceeds of $115,000,000[59]. - The Company incurred offering costs of $4,532,887 related to the Initial Public Offering, which were charged to additional paid-in capital[55]. - The underwriters exercised their over-allotment option, purchasing an additional 1,500,000 Units for gross proceeds of $15,000,000[74]. Shareholder Information - The company had 532,500 Class A ordinary shares issued and outstanding as of May 31, 2023, unchanged from November 30, 2022[6]. - As of May 31, 2023, 3,126,068 Class A Ordinary Shares are outstanding and subject to possible redemption at a value of $10.15 per share[49][48]. - A total of 8,373,932 ordinary shares were redeemed by shareholders following the Charter Amendment approved on January 20, 2023[29]. - The Company has authorized the issuance of 479,000,000 Class A ordinary shares and 20,000,000 Class B ordinary shares, with 2,875,000 Class B shares issued and outstanding as of May 31, 2023[76]. Operational Costs and Expenses - The company conducted an evaluation of its disclosure controls and procedures, concluding they were effective during the reporting period[106]. - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the fiscal quarter ended May 31, 2023[107]. - The company incurred formation and operating costs of $182,740 for the three months ended May 31, 2023, compared to $53,300 for the same period in 2022[95]. - The Company has agreed to pay the Sponsor $10,000 per month for administrative support for up to 18 months, totaling $160,000 accrued as of May 31, 2023[69]. Future Plans and Concerns - The company has the right to extend the period to complete a business combination by up to six times for an additional month each time, with a deposit of $262,500 or $0.0525 per Class A ordinary share[87]. - The company intends to use funds held outside the Trust Accounts primarily for identifying and evaluating target businesses, with cash of $67,023 available as of May 31, 2023[99]. - The company is within 12 months of its mandatory liquidation, raising substantial doubt about its ability to continue as a going concern[102]. - The Sponsor has agreed to indemnify the Trust Account to ensure that the amount per Public Share does not fall below $10.15[27]. - The Company adopted ASU 2020-06 effective January 1, 2024, which simplifies accounting for certain financial instruments and introduces additional disclosures for convertible debt[58].
Technology & Telecommunication Acquisition Corporation(TETEU) - 2023 Q2 - Quarterly Report