Financial Performance - Net income for the three months ended August 31, 2024, was $200,474, compared to $116,225 for the same period in 2023, reflecting a growth of 72.4%[7] - Basic and diluted net income per ordinary share increased to $0.03 from $0.02 year-over-year, a rise of 50%[7] - Net income for the nine months ended August 31, 2024, was $724,116, a decrease of 9.3% compared to $798,474 for the same period in 2023[11] - Net income allocable to redeemable Class A ordinary shares for the three months ended August 31, 2024, was $200,474, compared to $64,801 for the same period in 2023, representing a 209% increase[57] - Basic and diluted net income per redeemable Class A ordinary share increased to $0.03 for the three months ended August 31, 2024, from $0.02 for the same period in 2023[57] - As of August 31, 2024, the company had a net income of $200,474, consisting of interest earned on investments of $408,457, offset by formation and operating costs of $207,983[106] - For the nine months ended August 31, 2024, the Company reported a net income of $724,116, with interest earned on investments totaling $1,302,964 and formation and operating costs of $578,848[107] Assets and Liabilities - Total current assets increased to $101,706 from $15,912, representing a growth of 537.5%[4] - Total liabilities rose to $8,775,838 from $7,153,390, indicating an increase of 22.7%[5] - Total assets decreased to $31,239,880 from $33,765,829, a decline of 7.5%[5] - Total current liabilities increased to $4,750,838 from $3,128,390, an increase of 51.7%[4] - The Trust Account held assets amounting to $31,138,174 as of August 31, 2024, down from $33,749,917 as of November 30, 2023[47] - As of August 31, 2024, the Company had approximately $41,000 in cash and a working capital deficit of $4,649,132[35] Cash Flow - Cash and marketable securities held in trust account decreased to $31,138,174 from $33,749,917, a decline of 7.7%[4] - Interest earned on marketable securities held in trust account for the nine months ended August 31, 2024, was $1,302,964, down from $1,590,292, a decrease of 18.1%[7] - Net cash used in operating activities improved to $(520,384) from $(701,818), reflecting a 25.8% reduction in cash outflow[11] - Cash withdrawn from trust in connection to redemption was $4,872,513, significantly lower than $87,980,621 in the previous period[11] - Net cash provided by investing activities was $3,914,707, compared to $86,728,006 in the prior year, indicating a substantial decrease[11] - Cash at the end of the period increased to $40,533 from $39,475, showing a slight improvement[11] Business Operations - The Company has not commenced any operations as of August 31, 2024, and all activities relate to its formation and initial public offering[14] - 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[20] - The Company will redeem Public Shares at a per-share price equal to the aggregate amount in the Trust Account if a Business Combination is not completed within the Combination Period[27] - Management believes the Company will have sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a Business Combination or one year from the filing date[36] - The Company currently lacks the liquidity needed to sustain operations for at least one year from the date of the unaudited financial statements[38] - The Company is classified as an "emerging growth company" and may take advantage of certain exemptions from various reporting requirements[42] - The Company expects to incur significant costs in the pursuit of its initial Business Combination and cannot assure that its plans will be successful[104] Shareholder Activity - The Company’s shareholders redeemed a total of 8,373,932 ordinary shares in January 2023 and 149,359 ordinary shares in July 2023[31][32] - Shareholders redeemed an aggregate of 8,373,932 ordinary shares, valued at $86,353,885, on January 18, 2023, in connection with a General Meeting[82] - The Company has converted 2,875,000 Class B ordinary shares to Class A ordinary shares as of August 31, 2024[85] Financing and Loans - The Company borrowed a total of $2,020,474 from the Sponsor through various promissory notes between February 2023 and June 2024[30] - The Company has authorized the issuance of 479,000,000 Class A ordinary shares, with 3,407,500 shares issued and outstanding as of August 31, 2024[82] - The Company has accrued $90,000 and $220,000 under the Administrative Support Agreement as of August 31, 2024, and November 30, 2023, respectively[72] - Approximately $966,000 in contingent legal fees is included in accounts payable, contingent on completing a Business Combination[79] - Up to $1,500,000 of loans from the Sponsor or affiliates may be convertible into units at a price of $10.00 per unit[111] - The company does not currently believe it will need to raise additional funds for operating expenditures, but may require additional financing for the initial business combination[112] Regulatory and Compliance - The company's disclosure controls and procedures were not effective during the period covered by the report[117] - There have been no material changes to the risk factors disclosed in the Annual Report on Form 10-K filed on March 4, 2024[120] - There have been no off-balance sheet financing arrangements or special purpose entities established by the company[115]
Technology & Telecommunication Acquisition Corporation(TETEU) - 2024 Q3 - Quarterly Report