Financial Performance - As of June 30, 2024, the company reported a net loss of $202,398 for the three months ended, with formation and operating costs of $119,048 and a change in the fair value of warrant liability of $176,964[162]. - For the six months ended June 30, 2024, the company had a net loss of $439,194, which included formation and operating costs of $526,792 and a provision for income taxes of $27,369[163]. - The company incurred $30,000 and $60,000 in administrative service fees for the three and six months ended June 30, 2024, and 2023, respectively[178]. 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[168]. - A.G.P. will receive a fee of 3.5% of the gross proceeds from the Initial Public Offering, totaling $5,031,250, upon the consummation of the initial Business Combination[179]. Trust Account and Redemptions - Following the Initial Public Offering, approximately $146 million (approximately $10.29 per Public Share) was removed from the Trust Account due to stockholder redemptions[171]. - Approximately $1.02 million (approximately $11.32 per Public Share) was redeemed from the Trust Account by stockholders in connection with the Second Extension[150]. - The company had approximately $715,760.63 remaining in the Trust Account after the redemptions related to the Second Extension[150]. - Stockholders redeemed 753 Public Shares for approximately $7,530, resulting in about $760,000 remaining in the Trust Account[184]. Business Combination - The SVES Business Combination was mutually terminated on May 15, 2024, after multiple amendments to the agreement[158]. - The company intends to use substantially all funds in the Trust Account to complete its initial Business Combination[173]. - The company has until February 15, 2025, to complete the proposed Business Combination, or it will face mandatory liquidation and dissolution[180]. Liquidity and Financing - As of June 30, 2024, the company had a working capital deficit of $2,060,084 and only $342 in its operating bank account[168]. - The company raised substantial doubt about its ability to continue as a going concern due to liquidity conditions and mandatory liquidation risks[177]. - The company may need additional financing to complete its Business Combination or to meet obligations if cash on hand is insufficient[176]. Notes and Accounting - 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[151]. - The company issued a non-interest bearing promissory note of $300,000 to SVES LLC for working capital, with $98,588 funded as of June 30, 2024, and $201,412 available for withdrawal[175]. - The company adopted ASU 2016-13 on January 1, 2023, which did not have a material impact on its financial statements[197]. - As of June 30, 2024, the company had no off-balance sheet arrangements[199]. - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[185].
Relativity Acquisition (RACY) - 2024 Q2 - Quarterly Report