Financial Performance - For the three months ended September 30, 2024, the company reported a net income of $1,197,813, primarily due to interest income of $561,391 and a gain in the change in fair value of derivative liabilities of $928,588 [165]. - For the nine months ended September 30, 2024, the company had a net income of $1,500,153, driven by interest income of $2,088,627 and debt forgiveness of $608,776 [168]. - The company incurred $14,183,689 in transaction costs related to the IPO, including $4,000,000 in underwriting fees [170]. - The per-share redemption amount for ordinary shares rendered for redemption on October 19, 2023, was calculated to be approximately $10.96 per share [173]. - Net income per ordinary share is calculated using the two-class method, with net income allocated based on total shares [191]. Cash and Investments - As of September 30, 2024, the company had cash and investments held in the trust account amounting to $43,642,805, intended for the initial business combination [177]. - As of September 30, 2024, the company had a working capital deficit of $4,127,121 [179]. Business Operations - The company has not engaged in any operations or generated revenues to date, focusing on organizational activities and searching for a target for the initial business combination [164]. - The company expects to incur significant costs in pursuing its initial business combination and cannot assure the success of its capital-raising plans [163]. - The company has determined that if it does not complete an initial business combination by April 16, 2025, it will cease operations and liquidate, raising substantial doubt about its ability to continue as a going concern [180]. Accounting and Reporting - The company accounts for warrants as liabilities at fair value, adjusting them at each reporting period, with changes recognized as non-cash gains or losses [188]. - The fair value of public warrants is determined using quoted market prices, while private placement warrants are valued using a Black-Scholes-Merton model [189]. - Class A ordinary shares subject to possible redemption are classified as temporary equity, reflecting uncertain future events outside the company's control [190]. - The adoption of ASU 2016-13 on January 1, 2023, did not have a material impact on the company's financial statements [193]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [196]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO [197]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [198].
TLGY Acquisition (TLGY) - 2024 Q3 - Quarterly Report