Financial Obligations and Requirements - The company plans to utilize substantially all funds in the trust account for its initial business combination, with an estimated annual franchise tax obligation of $200,000[62]. - The company expects primary liquidity requirements of approximately $390,000 for legal and accounting expenses, $60,000 for regulatory reporting, and $180,000 for office-related costs over the next 18 months[64]. - The underwriter is entitled to deferred commissions of $3,555,674 from the units sold in the Initial Public Offering, payable only upon completion of a Business Combination[67]. - The company intends to repay any loans from sponsors or affiliates upon completion of the initial business combination[63]. - The company estimates that interest earned on the trust account will be sufficient to cover its income tax obligations[62]. Going Concern and Financing - The company may face substantial doubt about its ability to continue as a going concern for a reasonable period of time, which is considered to be one year from the issuance date of the financial statements[65]. - The company may need to secure additional financing to avoid curtailing operations or suspending potential transactions[65]. Accounting and Reporting - The company has not identified any critical accounting policies that could materially affect its financial statements[68]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[70]. - There were no changes in internal control over financial reporting that materially affected the company during the most recently completed fiscal quarter[74].
Broad Capital Acquisition p(BRAC) - 2023 Q2 - Quarterly Report