Financial Performance - For the three months ended March 31, 2025, the company reported a net income of $287,896, driven by a change in fair value of warrant liabilities of $548,000 and interest income of $170,992 [202]. - The company incurred operating and formation costs of $431,096 for the same period, resulting in a net income after expenses [202]. - For the three months ended March 31, 2024, the company experienced a net loss of $3,902,244, which included a change in fair value of warrant liabilities of $2,077,000 and operating costs of $2,408,551 [203]. - The Company calculates its earnings per share by allocating net income (loss) pro rata to its Class A and Class B ordinary shares [242]. Cash and Trust Account - As of March 31, 2025, the company had cash held in the Trust Account amounting to $16,086,301, including $1,863,833 of interest expense [210]. - On January 3, 2025, public shareholders redeemed 901,326 Class A ordinary shares for approximately $10.56 million, resulting in a reduction of funds in the Trust Account [194]. - The total amount deposited in the Trust Account for the year ended March 31, 2025, is $360,000, related to the Second Extension [231]. Business Combination and Extensions - The company has until October 7, 2025, to complete the Nidar Business Combination or another Business Combination, with the possibility of extending this period [190]. - The company issued the Second Extension Note for a total amount of $121,329 to extend the Combination Period through April 7, 2025 [195]. - The Company has until October 7, 2025, to complete a Business Combination, or it may seek to extend the Combination Period, subject to shareholder approval [220]. - As of April 1, 2025, the Company issued the Third Extension Note for up to $161,771.52, with monthly deposits of $53,923.84 through July 7, 2025 [217]. Loans and Financing - The total amount borrowed under various promissory notes is $2.8 million, with $2.2 million allocated for working capital and $0.6 million for extensions of the Combination Period [218]. - The Sponsor has agreed to provide a loan of $40,443 per month for the first three months of the Third Extension, totaling $121,329, which has been deposited in the Trust Account [216]. - The Company may convert up to $2 million of Working Capital Loans into warrants at a price of $1.00 per warrant [219]. Market and Trading Conditions - Following the suspension of trading on Nasdaq, the company's securities began trading on the Pink tier of the OTC marketplace, which may result in a less liquid market [198]. - The Company has a liquidity condition that raises substantial doubt about its ability to continue as a going concern for the next twelve months [222]. Underwriting and Fees - The underwriters received a cash underwriting discount of $4.6 million and a deferred fee of $8.05 million, which will only be payable if a business combination is completed [226]. Regulatory and Reporting Standards - In November 2023, the FASB issued ASU Topic 2023-07, which requires disclosures of significant segment expenses and other segment items included in the reported measure of segment profit or loss [243]. - ASU 2023-07 will be effective for fiscal years beginning after December 15, 2023, with early adoption permitted [246]. - In December 2023, the FASB issued ASU Topic 2023-09, which requires expanded disclosures of income taxes paid and incremental income tax information within the rate reconciliation [247]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements [249]. - The Company has elected not to opt out of the extended transition period under the JOBS Act, allowing it to adopt new or revised standards at the same time as private companies [250]. - The Company is a smaller reporting company and is not required to provide certain market risk disclosures [251]. Warrants - The Company has 27,400,000 warrants issued and outstanding, including 11,500,000 Public warrants classified as Level 1 [239].
Cartica Acquisition p(CITE) - 2025 Q1 - Quarterly Report