Financial Performance - The company recorded a net income of $98,814 for the three months ended March 31, 2024, despite incurring a loss of $89,882 from general and administrative expenses [126]. - For the three months ended March 31, 2023, the company reported a net income of $151,806, which included a loss of $352,846 from general and administrative expenses [127]. - The company recorded unrealized gains on investments held in the Trust Account amounting to $143,038 and interest earned of $274,776 [126]. Business Combination and Mergers - The company entered into a merger agreement with HUTURE Ltd. that implies a current equity value of Huture at $1.0 billion prior to the closing of the mergers [114]. - The company extended its Business Combination Period to October 6, 2023, with an option to further extend to January 6, 2024, and then on a monthly basis up to four times until May 6, 2024 [119]. - The company has until August 6, 2024, to consummate a Business Combination, failing which it will face mandatory liquidation [134]. - The company expects to incur significant professional and transaction costs in pursuit of the Business Combination [134]. Financial Liabilities and Expenses - The company has a recorded excise tax liability of $259,438 as of December 31, 2023, due to stockholder redemptions in June 2023 [110]. - An aggregate of 2,487,090 shares with a redemption value of approximately $25,943,773 (or $10.43 per share) were tendered for redemption during a special meeting on June 28, 2023 [119]. - 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 [139]. - The company expects to incur increased expenses as a result of being a public company, including legal and financial reporting costs [125]. Cash and Working Capital - As of March 31, 2024, the company had $27,695 in cash and a working capital deficit of $2,202,884 [133]. - The company has no off-balance sheet financing arrangements as of March 31, 2024 [136]. Compliance and Regulations - The company submitted a plan to regain compliance with Nasdaq Listing Rule 5550(a)(3) after receiving a notice regarding insufficient public holders [122]. - The company has been impacted by the Inflation Reduction Act, which affects its fiscal 2023 income tax provision due to stock repurchases [110]. Accounting Policies and Estimates - The company has not identified critical accounting estimates but has outlined critical accounting policies in accordance with US GAAP [140]. - The company accounts for common stock subject to possible redemption as temporary equity, reflecting certain redemption rights [141]. - The company is currently assessing the impact of ASU 2023-09 on its financial position, results of operations, or cash flows [145]. Revenue Generation - The company has not generated any operating revenues to date and does not expect to do so until after the completion of its initial Business Combination [125].
Aquaron Acquisition Corp.(AQUNU) - 2024 Q1 - Quarterly Report