Financial Performance - As of September 30, 2024, the company reported a net income of approximately $38,000, which included interest earned on investments held in the Trust Account of $310,000, offset by a loss from operations of $245,000 and a loss from the change in fair value of warrant liabilities of $28,000 [151]. - For the nine months ended September 30, 2024, the company had a net loss of approximately $251,000, which included a loss from operations of $1.3 million, offset by interest earned on investments held in the Trust Account of $1.0 million [152]. - For the three months ended September 30, 2023, the company had a net income of approximately $0.3 million, which included interest earned on investments held in the Trust Account of $0.5 million and a gain from the change in fair value of warrant liabilities of $0.5 million [153]. Initial Public Offering (IPO) - The Company raised gross proceeds of $310.0 million from its Initial Public Offering, with offering costs amounting to $17,586,741 [129]. - The company incurred an underwriting discount of approximately $6,200,000 at the closing of the Initial Public Offering and agreed to pay Deferred Underwriting Fees of approximately $10,850,000, contingent upon the completion of a Business Combination [157]. - The company has broad discretion in applying the net proceeds from the Initial Public Offering and Private Placement Warrants towards a Business Combination [132]. Business Combination and Timeline - The Company has until November 29, 2024, to complete a Business Combination, with the possibility of extending this date up to twelve months [140]. - The company has not generated any operating revenues to date and will not do so until after the completion of a Business Combination [150]. Trust Account and Liquidation - The balance in the Trust Account was approximately $26,415,545 after redemptions of 2,126,159 Class A ordinary shares at a redemption price of approximately $11.13 per share, totaling about $23,671,533 [138]. - The Company liquidated U.S. government treasury obligations held in the Trust Account on January 27, 2023 [131]. - The company liquidated U.S. government treasury obligations or money market funds held in the Trust Account on January 27, 2023, and the funds will be maintained in cash in an interest-bearing demand deposit account at a bank [163]. - The interest on the deposit account is currently approximately 2.5% - 3.0% per annum, but the rate is variable and may change significantly [163]. Financial Obligations and Loans - As of September 30, 2024, the Company had a working capital deficit of $5,095,087, net of a related party convertible promissory note [141]. - The Sponsor has provided loans to the Company to cover operating expenses, with approximately $4,533,208 of borrowings outstanding as of September 30, 2024 [143]. - The Company issued an unsecured promissory note of $3,000,000 to the Sponsor, with $2,951,000 outstanding as of September 30, 2024 [145]. - The company has no long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations, or long-term liabilities as of the reporting date [155]. Going Concern - The company is assessing its ability to continue as a going concern until the earlier of the consummation of a Business Combination or January 29, 2025, raising substantial doubt about its ability to continue [148]. Share Conversion and Redemptions - The Company converted 7,600,000 Class B ordinary shares into Public Shares on a one-for-one basis [139]. - The Company incurred an aggregate redemption amount of approximately $269,485,746 for 26,506,157 Class A ordinary shares [134]. Increased Expenses - The company expects to incur increased expenses due to being a public company, including legal, financial reporting, accounting, and auditing compliance costs [150].
stellation Acquisition I(CSTA) - 2024 Q3 - Quarterly Report