Taxation - The effective tax rate for the nine months ended September 30, 2024, was 22.62%, a decrease from 47.98% for the same period in 2023[78]. - The effective tax rate for the three months ended September 30, 2024, was 26.01%, down from 66.90% in 2023[78]. - The company incurred $190,370 in excise tax expenses for the nine months ended September 30, 2024, compared to $604,113 for the same period in 2023[81]. - The company has not recognized any unrecognized tax benefits or accrued interest and penalties as of September 30, 2024, and December 31, 2023[76]. Stock and Shares - As of September 30, 2024, there were 1,264,184 shares of common stock subject to possible redemption, down from 2,950,891 shares as of December 31, 2023[68]. - As of September 30, 2024, common stock subject to possible redemption was valued at $14,704,087, down from $32,055,202 as of December 31, 2023[91]. - The weighted-average shares outstanding for the nine months ended September 30, 2024, were 2,261,434, compared to 2,637,500 for the same period in 2023[83]. - As of September 30, 2024, the Company had 2,637,500 shares of common stock issued and outstanding, with 1,264,184 shares subject to possible redemption[102]. Financial Performance - Basic and diluted net income per share for the nine months ended September 30, 2024, was $0.29, compared to a loss of $(0.15) for the same period in 2023[83]. - Total expenses for the nine months ended September 30, 2024, were $(333,704), while for the same period in 2023, total expenses were $(389,197)[83]. Initial Public Offering (IPO) - The company sold 10,350,000 Units in its Initial Public Offering (IPO) at a purchase price of $10.00 per Unit, raising gross proceeds of $103,500,000[87]. - The Deferred Commission for the underwriter of the IPO is capped at $2,250,000, with an option to receive part of it in shares and a promissory note[122]. Business Combination - The company has the option to extend the deadline for completing a business combination by depositing $100,000 for each one-month extension, with the current deadline extended to June 13, 2024[96]. - The company deposited $50,000 into the Trust Account on October 2, 2024, to extend the time to complete a business combination until November 13, 2024[119]. - On October 22, 2024, the Sponsor's loans to the Company will convert into 240,000 PubCo Ordinary Shares upon the Closing of the Business Combination[121]. - If the Company fails to complete a Business Combination, holders of rights and warrants may not receive any funds or distributions, and these may expire worthless[104]. Financial Position - The company’s cash and investment held in trust account were primarily in money market funds invested in U.S. Treasury securities as of September 30, 2024[63]. - The fair value of U.S. Treasury Securities held in the Trust Account was $14,704,087 as of September 30, 2024, down from $32,055,202 as of December 31, 2023[113]. - The company has not experienced losses on its cash account and believes it is not exposed to significant credit risks[86]. - The company has a monthly obligation of $10,000 for administrative services, with an unpaid balance of $340,000 as of September 30, 2024[94]. Accounting and Compliance - The company is classified as an "emerging growth company" and has elected not to opt out of the extended transition period for new accounting standards[59]. - The company’s financial statements are prepared in accordance with U.S. GAAP and include all necessary adjustments for fair presentation[54]. - The company has not incurred any offering costs for the three months ended September 30, 2024, and 2023[69]. - The company has not considered the effect of warrants sold in the Initial Public Offering in the calculation of diluted net income per share as of September 30, 2024[82]. Warrants - The Public Warrants will expire five years after the completion of the Business Combination, or earlier upon redemption or liquidation[105]. - The Company may call the Public Warrants for redemption at a price of $0.01 per warrant if certain conditions are met, including a share price of $18 or more[106]. - The fair value of Founder Shares to be transferred to Non-Redeeming Stockholders was estimated at $452,026, or $0.35 per share[100].
ption Growth Acquisition (IGTA) - 2024 Q3 - Quarterly Report