Financial Performance - For the three months ended September 30, 2022, the company reported a net income of $2,382,466, consisting of operating costs of $273,246, interest earned of $1,204,462, and a change in fair value of the warrant liability of $1,451,250 [116]. - For the nine months ended September 30, 2022, the company achieved a net income of $3,572,165, with operating costs of $796,793, interest income of $1,466,458, and a change in fair value of warrants amounting to $2,902,500 [117]. Cash and Working Capital - As of September 30, 2022, the company had $857,864 in its operating bank account and a working capital of $1,271,698 [118]. - As of September 30, 2022, the company held cash of $267,978,958 in the Trust Account, with interest income of $1,466,458 earned from this account [120]. Initial Public Offering - The company completed its Initial Public Offering on May 12, 2022, raising gross proceeds of $225,000,000 from the sale of 22,500,000 Class A Public Shares, with an additional $33,750,000 from the underwriter's over-allotment option [118]. Business Combination and Obligations - The company intends to use substantially all funds in the Trust Account and proceeds from forward purchase shares to complete its Business Combination [121]. - The company has a potential obligation to consummate an initial Business Combination within 24 months from the closing of the Initial Public Offering, raising concerns about its ability to continue as a going concern if not completed [124]. - The company may utilize Working Capital Loans from its Sponsor or affiliates to finance transaction costs related to a Business Combination, with up to $3,000,000 convertible into warrants at a price of $1.00 per warrant [123][127]. Debt and Financial Obligations - The company has not incurred any long-term debt obligations or off-balance sheet arrangements as of September 30, 2022 [125][126]. Regulatory and Reporting Considerations - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards [135]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO [136]. Investment and Risk Management - The net proceeds from the Initial Public Offering will be invested in U.S. government securities with a maturity of 185 days or less, minimizing exposure to interest rate risk [138]. - The company has not engaged in any hedging activities since inception and does not plan to do so regarding market risk [139]. Operational Status - The company has not engaged in any operations or generated revenues to date, with non-operating income derived solely from interest on cash and cash equivalents [115].
Investcorp AI Acquisition Corp(IVCAU) - 2022 Q3 - Quarterly Report