Financial Performance - Net income for the three months ended June 30, 2023, was $673,543, compared to a net loss of $494,409 for the same period in 2022, indicating a significant turnaround[18]. - As of June 30, 2023, the company reported a net income of $1,437,346, compared to a net loss of $(678,853) for the same period in 2022[22]. - The company incurred formation and operating costs of $125,048 for the three months ended June 30, 2023, down from $644,202 for the same period in 2022, a decrease of approximately 80.5%[18]. - Cash flows used in operating activities were $(630,958) for the six months ended June 30, 2023, compared to $(756,303) for the same period in 2022[22]. - The provision for income taxes for the three months ended June 30, 2023, was $42,640, compared to no provision in the same period of the previous year[18]. Assets and Liabilities - Total current assets decreased from $134.5 million as of December 31, 2022, to $90.7 million as of June 30, 2023, representing a decline of approximately 32.6%[17]. - The company reported total liabilities of $5.39 million as of June 30, 2023, up from $4.61 million as of December 31, 2022, reflecting an increase of approximately 16.8%[17]. - Cash and marketable securities held in trust decreased from $105.9 million as of December 31, 2022, to $53.5 million as of June 30, 2023, a decline of about 49.6%[17]. - The company’s accumulated deficit increased from $(4.48) million as of December 31, 2022, to $(5.30) million as of June 30, 2023, reflecting a deterioration of approximately 18.3%[17]. - The total shareholders' deficit increased from $(4.48) million as of December 31, 2022, to $(5.30) million as of June 30, 2023, indicating a decline of about 18.3%[17]. Shareholder Information - The weighted average shares outstanding for the three months ended June 30, 2023, was 3,079,525, compared to 2,746,051 for the same period in 2022, showing an increase of about 12.1%[18]. - The total shareholders' deficit increased to $(5,296,515) as of June 30, 2023, from $(4,479,556) at the beginning of the year[20]. - As of June 30, 2023, there were 5,060,720 shares of Class A common stock classified as temporary equity, compared to 10,350,000 shares on December 31, 2022[76]. - The Company is authorized to issue 10,000,000 shares of Class B common stock, with 2,587,500 shares issued and outstanding as of June 30, 2023[77]. - Class B common stock will convert into Class A common stock on a one-for-one basis at the time of a Business Combination, with adjustments if additional Class A shares are issued[78]. Business Operations and Future Plans - The company has not commenced any operations as of June 30, 2023, and will not generate operating revenues until after completing its initial Business Combination[25]. - The Company plans to consummate a Business Combination prior to the mandatory liquidation date to address liquidity concerns[43]. - The Company has extended the deadline for completing its initial Business Combination from March 29, 2023, to December 29, 2023, contingent upon certain conditions[37]. - The Company will allow Public Shareholders to redeem shares at an anticipated price of $10.15 per Public Share, plus pro rata interest, net of taxes[32]. - The holders of Founder Shares have waived their redemption rights in connection with the Business Combination completion[36]. Trust Account and Financing - The value of Class A common stock subject to redemption was $53,520,228 as of June 30, 2023[22]. - The Company had $53,520,228 in cash held in the Trust Account as of June 30, 2023, down from $105,941,664 as of December 31, 2022[51]. - The Sponsor has agreed to make monthly deposits of $191,666 into the Trust Account for extensions, totaling five deposits from March 29, 2023, to August 29, 2023[38]. - The Company accrued $0 in income taxes for the six months ended June 30, 2023, while the income tax payable was $165,799 as of December 31, 2022[57]. - The Company has $140,000 outstanding under Working Capital Loans as of June 30, 2023, compared to $0 on December 31, 2022[72]. Initial Public Offering (IPO) Details - The company generated gross proceeds of $90,000,000 from its Initial Public Offering on December 29, 2021[26]. - Offering costs associated with the Initial Public Offering totaled $832,039, with underwriter fees amounting to $5,433,750[52]. - The Company sold 9,000,000 Units at a price of $10.00 per Unit during the Initial Public Offering, generating $90,000,000 in gross proceeds[65]. - The underwriters exercised an over-allotment option, purchasing an additional 1,350,000 Units, which generated $13,500,000[65]. - The underwriters received a cash underwriting discount of $1,811,250 upon the closing of the Initial Public Offering[74]. Marketable Securities and Risks - The company reported an unrealized gain on marketable securities of $881,224 for the three months ended June 30, 2023, compared to $149,784 for the same period in 2022, indicating a substantial increase[18]. - The company experienced unrealized losses from marketable securities of $(1,940,738) during the six months ended June 30, 2023[22]. - The net proceeds held in the Trust Account are invested in U.S. government treasury bills or money market funds, minimizing exposure to interest rate risk[124]. - The Company is subject to risks associated with being an early-stage and emerging growth company[24]. - Public Warrants will become exercisable 30 days after a Business Combination and expire five years after completion[80].
Arogo Capital Acquisition (AOGO) - 2023 Q2 - Quarterly Report