Financial Performance - As of September 30, 2024, the Company reported a net loss of $116,747, primarily due to operating expenses including general and administrative expenses of $287,590 and interest expense of $51,814 [147]. - For the nine months ended September 30, 2024, the Company had a net loss of $709,239, with total operating expenses of $1,310,672 and interest income of $1,036,806 from the Trust Account [148]. - For the nine months ended September 30, 2023, cash used in operating activities was $1,174,478, with a net income of $1,224,868 impacted by interest earned on cash and investments of $2,550,909 [157]. IPO and Fundraising - The Company generated gross proceeds of $100,000,000 from its IPO, selling 10,000,000 units at $10.00 per unit, and an additional $15,000,000 from the over-allotment option [151][152]. - The Company entered into PIPE Subscription Agreements to raise $40,200,000 by issuing shares at $10.00 per share, aimed at funding operations post-business combination [143][144]. - The Company incurred offering costs of $6,887,896 related to the IPO and over-allotment option, including $2,300,000 in underwriting fees [153]. Trust Account and Cash Management - The Trust Account held $116,725,000 in net proceeds from the IPO, initially invested in U.S. government securities [154]. - As of September 30, 2024, cash held in the Trust Account was $29,811,256, with interest income of $1,036,806 for the nine months ended September 30, 2024, of which $433,768 was withdrawn for taxes [159]. - The Company has liquidated U.S. government securities in the Trust Account to hold all funds in cash to mitigate risks associated with being deemed an unregistered investment company [155]. - As of September 30, 2024, cash held outside the Trust Account was $65,221, intended for evaluating target businesses and conducting due diligence [161]. Business Combination and Operations - The Company has until December 9, 2024, to complete its initial business combination, having extended the deadline multiple times since its IPO [140]. - The Company has not commenced any operations as of September 30, 2024, and will not generate operating revenues until after completing a business combination [146]. - The Company intends to use substantially all funds in the Trust Account to complete a business combination, with remaining proceeds allocated for working capital and potential acquisitions [160]. - The Company has until December 9, 2024, to complete the initial business combination, with substantial doubt raised about its ability to continue as a going concern if not completed [177]. Debt and Capital Needs - The total amount owed in connection with promissory notes as of September 30, 2024, was $3,736,066, including accrued interest [182]. - The Company has entered into multiple promissory notes with Public Gold Marketing Sdn Bhd, totaling $2,040,000 for extension fees and working capital, all fully borrowed as of September 30, 2024 [163][164][165][166][167][169][170][171][172][173][174]. - The Company may need to raise additional capital if the initial business combination is not consummated, which could involve loans or investments from various stakeholders [175]. Accounting and Compliance - The Company has submitted an application to transfer its securities from Nasdaq Global Market to Nasdaq Capital Market and regained compliance with listing requirements [141]. - There are no off-balance sheet arrangements or long-term liabilities as of September 30, 2024 [178][179]. - The Company accounts for warrants as either equity-classified or liability-classified instruments based on specific terms and applicable guidance [187]. - Public warrants meet the criteria for equity treatment, while private warrants are classified as liabilities at fair value [187]. - The fair value of private placement warrants is estimated using assumptions related to exercise price, market price, expected life, and risk-free interest rate [188]. - The Company does not expect any recently issued accounting standards to materially affect its financial statements as of September 30, 2024 [189]. - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies [191].
Globalink Investment Inc.(GLLIU) - 2024 Q3 - Quarterly Report