Financial Performance - As of March 31, 2024, the company reported a net loss of $236,796, which includes a provision for income taxes of $2,963 and formation and operating costs of $407,744[153]. - The company had a working capital deficit of $2,019,676 as of March 31, 2024, with only $524 in its operating bank account[156]. - The Company incurred $30,000 in administrative service fees for the three months ended March 31, 2024 and 2023[167]. Initial Public Offering - The company generated gross proceeds of $143,750,000 from its Initial Public Offering of 14,375,000 Units at $10.00 per Unit[156]. - Following the Initial Public Offering, approximately $146 million (approximately $10.29 per Public Share) was removed from the Trust Account due to stockholder redemptions[159]. Trust Account and Redemptions - The company had approximately $728,786 remaining in the Trust Account as of March 31, 2024[159]. - Approximately $1.02 million (approximately $11.32 per Public Share) was redeemed from the Trust Account by stockholders on February 13, 2024[141]. - Following a redemption event, approximately $1.02 million was removed from the Trust Account, leaving approximately $720,000 remaining[185]. Business Combination - The company has not commenced any operations and will not generate operating revenues until after completing a business combination[152]. - The company intends to use substantially all funds in the Trust Account to complete its initial Business Combination[161]. - The Company needs to raise additional funds to meet operational expenditures and may require financing to complete a Business Combination or redeem Public Shares[165]. - If a Business Combination is not completed by February 15, 2025, the Company will cease operations and liquidate, raising substantial doubt about its ability to continue as a going concern[169]. - The Company extended the deadline for consummating a Business Combination from February 15, 2024, to February 15, 2025[185]. - The SVES Business Combination was mutually terminated on May 15, 2024, leading to the extinguishment of the Second Extension Promissory Note[144]. Financial Instruments and Accounting - Management has determined that the fair value of derivative financial instruments is a significant accounting estimate that could differ from actual results[177]. - The Company has not had any off-balance sheet arrangements as of March 31, 2024, and December 31, 2023[189]. Advisory Fees - A.G.P. will receive a fee of $5,031,250 for advisory services related to the Business Combination, payable upon consummation[168]. Stock Redemption - As of March 31, 2024, 63,241 shares of Class A Common Stock were subject to possible redemption, valued as temporary equity[183]. Financing Arrangements - The company issued a Second Extension Promissory Note for up to $42,498 to SVES LLC, with monthly deposits of $3,541.50 into the Trust Account until February 15, 2025[142]. Company Classification - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[174].
Relativity Acquisition (RACY) - 2024 Q1 - Quarterly Report