Financial Performance - For the three months ended September 30, 2022, the company reported a net loss of $578,753, consisting of operating costs of $480,867 and an increase in fair value of derivative warrant liabilities of $106,184 [147]. - For the nine months ended September 30, 2022, the company had a net loss of $1,074,579, with operating costs of $1,094,728 and interest income of $64,950 from marketable securities held in the Trust Account [150]. - The company has a working capital deficit of $909,424 as of September 30, 2022, raising substantial doubt about its ability to continue as a going concern [157]. - Cash used in operating activities for the nine months ended September 30, 2022, was $1,054,509, impacted by an increase in fair value of derivative warrant liabilities [150]. Cash and Securities - As of September 30, 2022, the company had cash and marketable securities in the Trust Account amounting to $31,168,066, with an additional $34,044 in its operating bank account [152]. - The company intends to use substantially all funds in the Trust Account to complete its Business Combination and for working capital of the target business [152]. Initial Public Offering - The company generated gross proceeds of $40,000,000 from its Initial Public Offering of 4,000,000 Units at $10.00 per Unit [149]. - The company incurred transaction costs of $2,069,154 related to the Initial Public Offering, including $1,610,000 in underwriting fees [150]. Accounting and Financial Reporting - The company accounts for ordinary shares subject to possible redemption as temporary equity, presenting them at redemption value outside of shareholders' equity [166]. - Net loss per ordinary share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding, excluding shares subject to forfeiture [167]. - Derivative warrant liabilities are recognized at fair value and adjusted at each reporting period, with changes in fair value recorded in the statement of operations [169]. - The fair value of Private Placement Warrants is estimated using a Binomial simulation model at each measurement date [169]. - Management does not anticipate that recently issued accounting standards will materially affect the financial statements [170]. Future Outlook - The company expects to continue incurring significant costs in pursuit of its acquisition plans, with no assurance of successful business combination completion [145]. - The company has no off-balance sheet financing arrangements or long-term liabilities as of September 30, 2022 [159].
Brilliant Acquisition (BRLI) - 2022 Q3 - Quarterly Report