Financial Performance - For the three months ended March 31, 2025, the Company reported a net loss of $98,559, with operating costs of $282,139 partially offset by interest earned from marketable securities [126]. - The Company has not generated any revenues to date and does not expect to do so until after the completion of its Initial Business Combination [125]. - The Company has incurred significant costs in pursuit of its acquisition plans, raising substantial doubt about its ability to continue as a going concern [135]. Capital Structure - The Company raised gross proceeds of $225 million from the Initial Public Offering (IPO) by issuing 22,500,000 Class A ordinary shares at $10.00 per share, with an additional $33.75 million from the underwriter's over-allotment option [117]. - The Company entered into a non-interest bearing convertible unsecured loan of up to $3 million from the Sponsor to provide additional working capital and fund required deposits into the Trust Account [139]. - The Sponsor agreed to loan the Company up to $1,200,000 for Extension Contributions, later amended to $1,650,000 [140]. - As of March 31, 2025, the outstanding principal balance of the 2023 Notes was $1,600,000, up from $1,450,000 as of December 31, 2024 [140]. Liquidity and Cash Management - The Company had a working capital deficit of $4,525,515 as of March 31, 2025, indicating liquidity challenges [127]. - As of March 31, 2025, the Company had cash held in the Trust Account amounting to $17,852,573 and earned $183,580 in interest income from the Trust Account during the same period [131]. - As of March 31, 2025, the Company had $184,577 in cash held outside the Trust Account, intended for identifying and evaluating target businesses [133]. - Following the 2024 Extraordinary General Meeting, holders of 8,314,066 Class A ordinary shares redeemed their shares for approximately $95.45 million at a redemption price of $11.48 per share [120]. - The Sponsor agreed to contribute up to $50,000 per month into the Company's Trust Account to extend the time for completing the Initial Business Combination until May 12, 2025 [121]. Accounting and Regulatory Matters - The Company accounts for warrants as liabilities, subject to re-measurement at each balance sheet date, affecting the consolidated statements of operations [145]. - The FASB issued ASU No. 2023-09, effective for fiscal 2025, requiring additional income tax disclosures [147]. - The Company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [149]. - The Company may not be required to provide certain disclosures and auditor's attestation reports for five years following the IPO [150]. - The Company has identified critical accounting estimates that may affect reported amounts of assets and liabilities [143]. Other Financial Obligations - The Company will pay a monthly fee of $10,000 to the Sponsor for administrative services, totaling $240,000 in accrued expenses as of March 31, 2025 [142]. - The first draw from the 2023 Notes was $100,000, with subsequent draws of $100,000 through September 30, 2024 [140]. - The conversion price for the 2023 Notes is set at $10.00 per share, impacting the number of shares upon conversion [140].
Investcorp AI Acquisition Corp(IVCAU) - 2025 Q1 - Quarterly Report