IPO and Financing - The company 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[103]. - A private placement of 466,150 units was also completed simultaneously, generating total gross proceeds of $4,661,500[84]. - The company plans to make available up to $105,052,500 for working capital use and general corporate purposes, assuming no redemptions[92]. - The company may receive loans up to $1,500,000 convertible into units at $10.00 per unit upon the completion of the initial business combination[106]. - The company does not anticipate needing additional funds post-IPO for operational expenditures, but may require extra financing for business combinations or share redemptions[107]. Business Combination and Operations - As of June 30, 2022, the company had investments of $105,140,361 held in Trust Accounts, intended for the completion of its initial business combination[104]. - The company has until December 29, 2022, or September 29, 2023, if extended, to complete its initial business combination[86]. - The merger consideration for Eon Reality, Inc. is set at $550 million, subject to adjustments based on closing net indebtedness[92]. - The company expects to incur significant costs in pursuing its initial business combination plans[90]. - The company has not generated any operating revenues and will not do so until after the completion of its initial business combination[102]. Financial Position and Liabilities - As of June 30, 2022, the company had cash of $213,493 outside of Trust Accounts, intended for identifying and evaluating target businesses[105]. - There are no off-balance sheet financing arrangements or special purpose entities established by the company[108]. - The company has no long-term debt or capital lease obligations, with a monthly fee of $10,000 payable to an affiliate for office-related expenses[111]. - The underwriters are entitled to a deferred fee of $3,622,500, payable only upon the successful completion of a business combination[111]. Accounting and Reporting - The company accounts for warrants as liabilities, adjusting their fair value at each reporting period[113]. - Class A common stock subject to possible redemption is classified as temporary equity, reflecting uncertain future events[114]. - Net income (loss) per common share is calculated using the two-class method, excluding remeasurement associated with redeemable shares[115]. - The company has adopted ASU 2020-06 effective January 1, 2022, with no material impact on financial statements for the periods reported[117]. - As of June 30, 2022, the company was not subject to market or interest rate risk, with net proceeds invested in U.S. government securities[119]. Losses and Costs - The company reported a net loss of $826,144 from inception through June 30, 2022, attributed entirely to formation and operating costs[102].
Arogo Capital Acquisition (AOGO) - 2022 Q2 - Quarterly Report