Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of $688,427, primarily due to operating expenses of $581,054 and a change in fair value of warrant liabilities of $142,667 [98]. - For the nine months ended September 30, 2023, the company had a net loss of $2,179,935, with operating expenses totaling $2,257,753, including legal and professional charges of $1,836,206 related to De-SPAC activities [98]. - The company has not generated any operating revenues to date and does not expect to do so until after completing a Business Combination [97]. Cash and Securities - As of September 30, 2023, the company had cash and marketable securities held in the Trust Account amounting to $6,860,609, intended for use in completing a Business Combination [102]. - As of September 30, 2023, the company had cash of $18,810 outside the Trust Account, primarily for identifying and evaluating target businesses [103]. - A deposit of $31,916 was made into the Trust Account on October 19, 2023, bringing the total in the Trust Account to approximately $6,892,525 [112]. Initial Public Offering - The company completed its Initial Public Offering on October 19, 2021, raising gross proceeds of $100,000,000 from the sale of 10,000,000 units [100]. - The company incurred offering costs of $6,101,730 related to the Initial Public Offering, which included $2,000,000 in underwriting fees [101]. Nasdaq Compliance - The company has received letters from Nasdaq regarding compliance with continued listing requirements, with a notification on August 7, 2023, confirming regained compliance [115]. - The Company regained compliance with Nasdaq Listing Rule 5250(c)(1) after filing its Annual Report on Form 10-K for the year ended December 31, 2022 [116]. - The Company also regained compliance with Nasdaq Listing Rule 5250(c)(1) after filing its Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 [117]. - The Company regained compliance with Nasdaq Listing Rule 5450(b)(2)(B) after addressing the issue of not maintaining 1,100,000 publicly held shares [118]. - As of October 3, 2023, the Company's Market Value of Listed Securities (MVLS) was below the $50,000,000 minimum requirement for 30 consecutive trading days, leading to a delist determination [119]. - The Company has requested a hearing scheduled for December 7, 2023, to present its plan of compliance regarding Nasdaq listing standards [120]. Internal Controls and Debt - The Company reported having no off-balance sheet arrangements as of September 30, 2023 [121]. - The Company has no long-term debt or capital lease obligations, with deferred underwriting commissions of $3,500,000 contingent upon completing a Business Combination [123]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain reporting exemptions [124]. - As of September 30, 2023, the Company had a material weakness in internal controls over financial reporting related to accounting for complex financial instruments [132]. - There were no changes in internal controls over financial reporting that materially affected the Company during the most recently completed fiscal quarter [134]. Business Combination - The company exercised a Monthly Extension Option on October 16, 2023, extending the time to consummate a Business Combination to November 19, 2023 [111].
Achari Ventures I(AVHI) - 2023 Q3 - Quarterly Report