Financial Position - As of September 30, 2023, the company had cash in its operating account of $60,284 and a working capital deficit of approximately $8.5 million[161]. - The company has a significant working capital deficiency and needs to raise additional funds to meet its obligations and sustain operations[262]. - Total current assets decreased from $239,520 in September 30, 2022 to $93,889 in September 30, 2023, representing a decline of approximately 60.8%[266]. - Cash at the end of the period decreased from $177,578 in September 30, 2022 to $60,284 in September 30, 2023, a decline of approximately 66.1%[273]. - As of September 30, 2023, the Company reported a working capital deficiency of approximately $8.5 million, excluding tax payables[296]. - The Company has approximately $60,000 in cash in its operating account as of September 30, 2023[296]. - As of September 30, 2023, the aggregate balance outstanding under all promissory notes was $2,564,439, compared to $251,754 as of September 30, 2022, indicating a significant increase[297]. - The Company had $0 of U.S. federal net operating loss carryovers as of September 30, 2023, and 2022, indicating no available offsets for future taxable income[369]. Business Operations - The company has not commenced any operations as of September 30, 2023, focusing on identifying potential business combinations in the financial services industry[275]. - The company expects to incur significant costs in pursuit of financing plans and its initial business combination[161]. - The Company must complete a Business Combination with a fair market value of at least 80% of the Trust Account assets, which excludes deferred underwriting commissions and taxes[280]. - The Combination Period has been extended multiple times, with the latest extension allowing until February 17, 2024, for the Company to complete a Business Combination[283]. - The Company has agreed to redeem 100% of outstanding public shares if a Business Combination is not completed within the Combination Period[283]. Financial Performance - Net loss for the year ended September 30, 2023 was $320,150, compared to a net loss of $3,622,794 for the year ended September 30, 2022, indicating a significant improvement[268]. - Trust interest income increased to $3,084,260 for the year ended September 30, 2023, up from $1,025,942 in the previous year, reflecting a growth of approximately 200%[268]. - Basic and diluted net loss per share improved from $(0.17) in 2022 to $(0.02) in 2023, indicating a positive trend in loss per share[268]. - Total stockholders' deficit increased from $(3,149,327) in September 30, 2022 to $(8,486,012) in September 30, 2023, reflecting a decline in equity[270]. Compliance and Regulatory Matters - The financial statements do not include any adjustments that might result from the company's inability to continue as a going concern[262]. - The company is subject to compliance with the Investment Company Act, which may impose burdensome requirements and restrictions on its activities[162]. - Compliance with the Sarbanes-Oxley Act may require substantial financial and management resources, increasing the time and costs of completing an acquisition[170]. - The company is classified as an "emerging growth company" and may take advantage of certain exemptions from disclosure requirements, potentially making its securities less attractive to investors[167]. - The company has not opted out of the extended transition period under the JOBS Act, allowing it to adopt new accounting standards at the same time as private companies[168]. - The company is a "smaller reporting company" and may provide only two years of audited financial statements, which could complicate comparisons with other public companies[169]. Capital Structure and Financing - The company raised $4,595,000 from a private placement of common stock at $10.00 per share simultaneously with its IPO[277]. - The company incurred transaction costs of $3,537,515 related to its IPO, which included $1,500,000 in underwriting commissions[277]. - The Trust Account held a total of $150,000,000 following the IPO, with $130,246,958 released for tax obligations as of September 30, 2023[278]. - The Company issued an unsecured promissory note of up to $425,402 to the Sponsor, with funds to be deposited into the Trust Account for extensions[294]. - The Company has a Standby Equity Purchase Agreement allowing it to issue and sell up to $250 million of ordinary shares following the Business Combination[355]. Tax Matters - The Company reported a total deferred tax asset of $634,017 as of September 30, 2023, compared to $435,209 in 2022, reflecting an increase of approximately 46%[368]. - The income tax provision for the Company was $615,284 for the year ended September 30, 2023, significantly higher than $145,621 in 2022, representing an increase of over 320%[369]. - The Company established a full valuation allowance for deferred tax assets as of September 30, 2023, due to significant uncertainty regarding future realization[370]. - The statutory federal income tax rate remained at 21.00% for both September 30, 2023, and 2022[372].
Armada Acquisition I(AACI) - 2023 Q4 - Annual Report