Arogo Capital Acquisition (AOGO) - 2022 Q1 - Quarterly Report

Financial Overview - Arogo Capital Acquisition Corp. completed its initial public offering on December 29, 2021, raising gross proceeds of $103.5 million from the sale of 10,350,000 units at $10.00 per unit [108]. - The company also raised an additional $4,661,500 through a private placement of 466,150 units at the same price, totaling gross proceeds of $108,161,500 [88]. - As of March 31, 2022, Arogo had investments of $104,990,577 held in Trust Accounts, intended for the completion of its initial business combination [109]. - The net loss for the period from June 9, 2021, to March 31, 2022, was $331,736, attributed entirely to formation and operating costs [106]. - Arogo has until December 29, 2022, or September 29, 2023, if extended, to complete its initial business combination, or it will redeem public shares at a per-share price based on the trust account balance [90]. Business Combination Plans - The merger consideration for Eon Reality, Inc. is set at $550 million, subject to adjustments based on closing net indebtedness [96]. - Arogo plans to make available up to $105,052,500 for Eon’s working capital and general corporate purposes, assuming no redemptions occur [96]. - The company expects to incur significant costs in pursuing its initial business combination plans, with no assurance of success in raising capital [93]. - The company may receive loans up to $1,500,000 from its Sponsor or affiliates, convertible into units at $10.00 per unit upon the completion of the initial business combination [111]. - The company does not anticipate needing additional funds post-IPO for operational expenditures, but may require financing for the initial business combination or to redeem public shares [112]. Operational Details - The company has not generated any operating revenues as of March 31, 2022, and will only do so post-completion of its initial business combination [106]. - Arogo intends to use cash held outside Trust Accounts, totaling $624,866 as of March 31, 2022, for identifying and evaluating target businesses [110]. - There are no off-balance sheet financing arrangements or obligations, ensuring no hidden liabilities [114]. - The company incurs a monthly fee of $10,000 to an affiliate of its Sponsor for office space and administrative support, starting from December 29, 2021 [115]. - A deferred fee of $3,622,500 is payable to underwriters only upon successful completion of a business combination [115]. - The net proceeds in the Trust Account are invested in U.S. government treasury securities with a maturity of 185 days or less, minimizing exposure to interest rate risk [116].