dMY Squared Technology (US:DMYY)2024-11-14 21:31Financial Position - As of September 30, 2024, the company had approximately $385,000 in cash and a working capital deficit of approximately $2.2 million[120]. - The company has significant doubt about its ability to continue as a going concern if a Business Combination does not occur[124]. Initial Public Offering - The company generated gross proceeds of $60.0 million from its Initial Public Offering, incurring offering costs of approximately $3.7 million[107]. - The company has broad discretion regarding the application of net proceeds from the Initial Public Offering and Private Placement Warrants[112]. - The underwriter received an underwriting discount of approximately $0.8 million and an additional deferred fee of $2.1 million, contingent upon the completion of a Business Combination[135]. Trust Account and Investments - The company placed approximately $64.1 million in the Trust Account, invested in U.S. government securities[111]. - The company must complete one or more initial Business Combinations with an aggregate fair market value of at least 80% of the net assets held in the Trust Account[112]. Business Combination and Financing - The company issued a Convertible Note with a principal amount of up to $1.75 million to finance transaction costs related to a Business Combination[123]. - The company has extended its liquidation date to November 29, 2024, drawing down $541,667 from the Convertible Note for this purpose[118]. - The company issued a Convertible Note with a principal amount of up to $1.75 million, which may be converted into warrants at a price of $1.00 per warrant upon the consummation of the initial Business Combination[138]. - The company borrowed $491,667 under a Convertible Note through September 2024, with an additional $50,000 borrowed in October 2024, totaling $541,667[139]. Financial Performance - For the three months ended September 30, 2024, the company reported a net income of approximately $146,000, driven by a gain of approximately $242,000 from changes in fair value of derivative warrant liabilities and approximately $335,000 in interest income[128]. - For the nine months ended September 30, 2024, the company experienced a net loss of approximately $344,000, with general and administrative expenses totaling approximately $793,000 and tax expenses of approximately $798,000, partially offset by approximately $1.0 million in interest income[129]. - For the three months ended September 30, 2023, the company reported a net loss of approximately $73,000, with general and administrative expenses of approximately $241,000 and tax expenses of approximately $161,000, offset by approximately $873,000 in interest income[130]. - For the nine months ended September 30, 2023, the company achieved a net income of approximately $1.6 million, supported by approximately $2.2 million in interest income and approximately $967,000 from changes in fair value of derivative warrant liabilities[131]. Administrative Expenses - The company has incurred approximately $30,000 in administrative expenses paid to the Sponsor for both the three and nine months ended September 30, 2024, and September 30, 2023[132]. - The company has an outstanding balance of $160,000 and $70,000 in accrued expenses related to administrative fees as of September 30, 2024, and December 31, 2023, respectively[132]. Derivative Liabilities - The company has recorded non-cash gains and losses related to changes in the fair value measurement of derivative liabilities at each reporting period[126].