Aimei Health Technology Co., Ltd(AFJKU) - 2024 Q1 - Quarterly Report

Part I: Financial Information Financial Statements For Q1 2024, the company reported $755,500 net income, primarily from Trust Account interest, with total assets of $71.3 million Unaudited Balance Sheets Balance Sheet Summary (as of March 31, 2024 vs. December 31, 2023) | Financial Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash | $413,747 | $580,717 | | Cash and marketable securities held in Trust Account | $70,798,980 | $69,889,848 | | Total Assets | $71,279,696 | $70,470,565 | | Liabilities & Equity | | | | Total Liabilities | $768,472 | $714,841 | | Ordinary shares, subject to possible redemption | $70,798,980 | $69,889,848 | | Total Stockholders' Deficit | ($287,756) | ($134,124) | Unaudited Statement of Operations Statement of Operations (For the three months ended March 31, 2024) | Line Item | Amount (USD) | | :--- | :--- | | Formation and operating costs | ($153,632) | | Interest earned on investments held in trust | $909,132 | | Net Income | $755,500 | | Basic and diluted net income per share | $0.08 | Unaudited Statement of Cash Flows Cash Flow Summary (For the three months ended March 31, 2024) | Line Item | Amount (USD) | | :--- | :--- | | Net cash used in operating activities | ($166,970) | | Net Change in Cash | ($166,970) | | Cash, Beginning of Period | $580,717 | | Cash, End of Period | $413,747 | Notes to Unaudited Financial Statements Notes detail the company's blank check status, IPO proceeds of $69 million, related party transactions, and going concern doubts - The company is a blank check company incorporated on April 27, 2023, intending to pursue a business combination with a target in the healthcare innovation sector, specifically biopharmaceutical, medical technology/device, and diagnostics[11] - On December 6, 2023, the company completed its IPO of 6.9 million units at $10.00 per unit, generating gross proceeds of $69 million. Net proceeds of $69.69 million were placed in a Trust Account[13][15] - Management has determined that there is substantial doubt about the company's ability to continue as a going concern if it fails to consummate a business combination within the Combination Period (12 to 24 months from IPO)[27] - The company has an administrative services agreement with an affiliate of the Sponsor to pay $10,000 per month for office space and administrative services. For the three months ended March 31, 2024, $30,000 was charged to expenses[57] Management's Discussion and Analysis of Financial Condition and Results of Operations As a blank check company with no operations, Q1 2024 net income was $755,500 from Trust Account interest, with $70.8 million in the Trust Account - The company is a blank check company with no specific business combination under consideration and has not had any substantive discussions with any prospective target[73] Q1 2024 Financial Highlights | Metric | Amount (USD) | | :--- | :--- | | Net Income | $755,500 | | Dividend income from Trust Account | $909,132 | | Formation and operational costs | ($153,632) | Liquidity Position (as of March 31, 2024) | Metric | Amount (USD) | | :--- | :--- | | Cash in operating bank account | $413,747 | | Cash in Trust Account | $70,798,980 | | Working Capital | $402,244 | - The company has no off-balance sheet arrangements. Its primary contractual obligation is a deferred underwriting fee of $690,000, payable upon the closing of a business combination[81][82] Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, the company is not required to provide information for this item - The company is not required to provide this information as it qualifies as a smaller reporting company[85] Controls and Procedures Management concluded that disclosure controls and procedures were not effective as of March 31, 2024, with no material changes to internal control - Based on an evaluation as of March 31, 2024, the company's Certifying Officers concluded that its disclosure controls and procedures were not effective[85] - No changes occurred in the company's internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[87] Part II: Other Information Legal Proceedings The company has no legal proceedings to report - There are no legal proceedings[89] Risk Factors As a smaller reporting company, the company is not required to provide the information for this item - The company is not required to provide risk factor information as it is a smaller reporting company[89] Unregistered Sales of Equity Securities and Use of Proceeds Details the use of proceeds from the December 6, 2023 IPO and private placement, with $69.69 million placed in the Trust Account IPO and Private Placement Proceeds (December 6, 2023) | Transaction | Gross Proceeds (USD) | | :--- | :--- | | Initial Public Offering (IPO) | $60,000,000 | | Over-Allotment Option | $9,000,000 | | Private Placement | $3,320,000 | - A total of $69,690,000 of the net proceeds from the IPO and Private Placement were placed in the Trust Account[91] - Total underwriting discounts paid were $1,380,000, with an additional deferred discount of $690,000 payable upon the closing of an initial business combination[92][93]