Financial Performance - The company reported a net income of $151,806 for the three months ended March 31, 2023, compared to a net loss of $2,143 for the same period in 2022[110][111]. - The company incurred general and administrative expenses of approximately $340,846 for the three months ended March 31, 2023[110]. - As of March 31, 2023, the company had $37,249 in cash and a working capital deficit of $301,138[115]. - The company has no long-term debt or off-balance sheet financing arrangements as of March 31, 2023[118][119]. - The company expects to incur significant costs related to being a public company and pursuing a business combination[116]. IPO and Mergers - The company completed its IPO on October 6, 2022, raising gross proceeds of $50 million from the sale of 5,000,000 units at $10.00 per unit[112]. - The company entered into a merger agreement with Bestpath IoT Technology Ltd., valuing Bestpath at $1.2 billion prior to the closing of the mergers[105]. - Following the mergers, the company will issue up to 15 million Earnout Shares to Holdco's shareholders based on certain revenue milestones for fiscal years 2023 and 2024[106]. - The company has received loans from its sponsor totaling $370,000 to cover transaction costs related to the business combination[115]. - The underwriters are entitled to a deferred fee of $0.35 per public share, totaling $1,896,013, payable only upon completion of a business combination[121]. - The company has until July 6, 2023, to complete a business combination, or it will face mandatory liquidation[117]. Accounting and Compliance - The company recognizes changes in redemption value over an expected 9-month period leading up to a business combination[124]. - The company complies with FASB ASC 260, presenting income (loss) per redeemable and non-redeemable share following the two-class method[125]. - Offering costs related to the IPO are charged to shareholders' equity upon completion of the IPO[126]. - The company is assessing the impact of ASU 2020-06, effective after December 15, 2023, on its financial position and results of operations[128]. - The company has identified critical accounting policies in accordance with US GAAP and SEC regulations[122]. - Common stock subject to possible redemption is classified as temporary equity and presented at redemption value[123]. Internal Controls and Legal Matters - There were no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended March 31, 2023[132]. - Management concluded that disclosure controls and procedures were effective as of March 31, 2023[131]. - The company has no legal proceedings pending[134].
Aquaron Acquisition Corp.(AQUNU) - 2023 Q1 - Quarterly Report