Financial Performance - For the year ended December 31, 2022, the company reported a net income of $3,788,224, a decrease from $8,703,976 in 2021, primarily due to a change in the fair value of warrant liabilities[244][245]. - The company has not generated any operating revenues to date and relies on non-operating income from interest on marketable securities and changes in the fair value of warrant liabilities[281]. Transaction Costs and Funding - The company incurred transaction costs of $4,099,907 related to its Initial Public Offering, including $2,300,000 in underwriting fees[246]. - The company intends to use substantially all funds in the trust account to complete its business combination, with remaining proceeds allocated for working capital[285]. - The company may need to raise additional funds to meet expenditures required for operating its business and completing a business combination[289]. - The company has received loans from its sponsor totaling $1,150,000 to extend the deadline for consummating a business combination[287][288]. Shareholder Activity - As of September 13, 2022, stockholders redeemed 3,076,817 shares for $31,845,056, leaving 1,690,196 shares remaining[284]. Internal Controls and Compliance - The company has identified material weaknesses in its internal control over financial reporting, which could affect the accuracy and timeliness of its financial reporting[248][249]. - The company faces potential litigation and inquiries from regulatory bodies due to the restatement of previously issued financial statements and changes in accounting for warrants[252]. Accounting Treatment - The company has classified all public shares as temporary equity following a reevaluation of its accounting treatment[251].
Breeze Acquisition (BREZ) - 2022 Q4 - Annual Report