Financial Performance - For the three months ended June 30, 2023, the company reported a net loss of $122,363, compared to a net loss of $35,544 for the same period in 2022, indicating an increase in losses [157]. - For the six months ended June 30, 2023, the net loss was $342,866, a decrease from the $495,826 loss reported in the same period in 2022, reflecting a reduction in operating costs [157]. - Net loss per share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding, excluding shares subject to forfeiture [174]. 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 [158]. - The company incurred $2,069,154 in transaction costs related to the Initial Public Offering, including $1,610,000 in underwriting fees [159]. Cash and Working Capital - As of June 30, 2023, the company had cash held in the Trust Account amounting to $4,529,551, which is intended to be used for completing a Business Combination [160]. - As of June 30, 2023, the company had a working capital deficit of $1,572,423, raising concerns about its ability to continue as a going concern [164]. Financial Obligations - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2023, indicating a lack of financial obligations outside its balance sheet [166]. - The company may need to raise additional funds to meet operational expenditures or complete a Business Combination, which could involve issuing additional securities or incurring debt [163]. Business Combination - The company intends to use funds held outside the Trust Account primarily for identifying and evaluating target businesses and conducting due diligence [161]. - The company has a deadline of August 23, 2023, to complete a Business Combination, or it will face mandatory liquidation [165]. Accounting and Reporting - The company accounts for ordinary shares subject to possible redemption as temporary equity, presented at redemption value outside of shareholders' equity [173]. - 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 [176]. - The fair value of Private Placement Warrants is estimated using a Binomial simulation model at each measurement date [176]. - Management does not anticipate that recently issued accounting standards will materially affect financial statements [177]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [179].
Brilliant Acquisition (BRLI) - 2023 Q2 - Quarterly Report