Financial Performance - As of September 30, 2024, the company reported a net income of $242,417, primarily from a gain of $249,985 from the extinguishment of a promissory note[160]. - For the nine months ended September 30, 2024, the company experienced a net loss of $196,776, with formation and operating costs amounting to $627,354[161]. - The company has incurred a working capital deficit, raising substantial doubt about its ability to continue as a going concern[176]. Trust Account and Fund Management - Approximately $146 million (approximately $10.29 per Public Share) was removed from the Trust Account due to stockholder redemptions following the 2022 Special Meeting[168]. - Following the 2024 Special Meeting, approximately $1.02 million (approximately $11.32 per Public Share) was redeemed from the Trust Account, leaving approximately $715,760.63 remaining[147]. - As of September 30, 2024, the Company had $760,000 remaining in its Trust Account after redeeming approximately $7,530 for 753 Public Shares[184]. - The company intends to use substantially all funds in the Trust Account to complete its initial Business Combination[170]. Business Combination and Operations - The company has not commenced any operations and will not generate operating revenues until after completing a business combination[159]. - The Company has until February 15, 2026, to complete its proposed Business Combination, or it will face mandatory liquidation[179]. - The SVES Business Combination was mutually terminated on May 15, 2024, leading to the extinguishment of the Second Extension Promissory Note[155]. - The Company has determined that it may need to raise additional funds to meet operating expenditures and complete its Business Combination[175]. Promissory Notes and Fees - The Company entered into a promissory note with Instinct Bio Technical Company for up to $400,000, of which $175,000 has been funded[186]. - 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[148]. - The Company has issued a non-interest bearing promissory note for $300,000 to SVES LLC, which became null and void due to the termination of the SVES Business Combination[173]. - The Company will pay A.G.P. a fee of $5,031,250 upon the consummation of the initial Business Combination, which is 3.5% of the gross proceeds of the Initial Public Offering[178]. Accounting and Reporting - The Company is currently evaluating the impact of recent accounting standards updates on its financial statements and disclosures[196][197]. - The Company adopted ASU 2020-06 effective April 13, 2021, which simplifies accounting for certain financial instruments, but it did not impact the condensed consolidated financial statements[198]. - The Company adopted ASU 2016-13 on January 1, 2023, which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected, with no material impact on the financial statements[199]. - As of September 30, 2024, and December 31, 2023, the Company had no off-balance sheet arrangements[201]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[203].
Relativity Acquisition (RACY) - 2024 Q3 - Quarterly Report