Financial Performance - The company reported a net loss of $460,282 for the period ended March 31, 2022, compared to a net loss of $20,373 for the same period in 2021, indicating a significant increase in losses [142]. - A working capital deficit of $2,755,392 was reported as of March 31, 2022, raising concerns about the company's ability to continue as a going concern [150]. - Cash used in operating activities for the period ended March 31, 2022, was $699,248, influenced by various factors including interest earned on marketable securities [144]. - Net loss per share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding, excluding shares subject to forfeiture [159]. Cash and Securities - As of March 31, 2022, the company had cash and marketable securities held in the Trust Account amounting to $41,496,970, with an additional $154,255 in its operating bank account [145][146]. - The company generated gross proceeds of $40,000,000 from its Initial Public Offering of 4,000,000 Units at a price of $10.00 per Unit [143]. - The company may need to raise additional funds to meet operational expenditures or complete its business combination, which could involve issuing additional securities or incurring debt [149]. - The company has no off-balance sheet financing arrangements or long-term liabilities as of March 31, 2022 [152]. Initial Public Offering - Total transaction costs incurred during the Initial Public Offering amounted to $2,069,154, including $1,610,000 in underwriting fees [144]. - The company expects to continue incurring significant costs in pursuit of its acquisition plans, with no assurance of successful business combination completion [139]. Business Combination - The company entered into a Merger Agreement with Nukkleus Inc., which would result in former Nukkleus stockholders owning approximately 66% of the post-business combination company [140]. Accounting and Reporting - The Company accounts for ordinary shares subject to possible redemption as temporary equity, presented at redemption value outside of shareholders' equity [158]. - Derivative warrant liabilities are recognized at fair value and adjusted at each reporting period, with changes in fair value reflected in the statement of operations [161]. - The fair value of Private Placement Warrants is estimated using a Binomial simulation model at each measurement date [161]. - Management does not anticipate that recently issued accounting standards will materially affect financial statements [162]. - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [164].
Brilliant Acquisition (BRLI) - 2022 Q1 - Quarterly Report