Financial Performance - As of March 31, 2023, the company reported a net income of $1,163,141, primarily from interest earned on investments held in the trust account[158]. - The company has not generated any operating revenues to date and will only do so after completing its initial business combination[157]. - The company recognized a noncash loss of $1,168,894 due to changes in the fair value of derivative warrant liabilities for the three months ended March 31, 2023[158]. IPO and Trust Account - The company raised gross proceeds of $300.0 million from its Initial Public Offering (IPO) by issuing 30,000,000 units at $10.00 per unit, with offering costs of approximately $17.2 million[150]. - Following the IPO, the company placed $323.7 million in a trust account, invested in U.S. government securities, until the completion of a business combination or distribution to shareholders[152]. - The company extended the deadline for completing a business combination from March 23, 2023, to September 25, 2023, with approximately $24.1 million remaining in the trust account after shareholder redemptions[153]. - As of March 31, 2023, the company had cash of $568,236, indicating limited liquidity until the consummation of the IPO[179]. Business Combination - The company entered into a non-binding letter of intent for a business combination with Airship AI, valuing the transaction at an enterprise value of $290 million[155]. Internal Controls and Reporting - The company has identified a material weakness in its internal control over financial reporting, which could lead to misstatements in financial statements[175]. - The company acknowledges that its disclosure controls and procedures may not prevent all errors or instances of fraud, providing only reasonable assurance of their effectiveness[193]. - Management is committed to improving internal control over financial reporting and has allocated substantial resources for remediation efforts[194]. - The company is evaluating the benefits of relying on reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for up to five years[184]. Administrative Expenses - The company incurred $30,000 in administrative expenses related to services provided by its sponsor during the three months ended March 31, 2023[177]. - As of March 31, 2023, the company did not have any off-balance sheet arrangements or contractual obligations[182].
BYTE Acquisition (BYTS) - 2023 Q1 - Quarterly Report