Financial Performance - For the three months ended June 30, 2023, the company reported a net income of $2,011,446, which included $2,568,625 of interest income and $333,230 of operating expenses[150]. - For the six months ended June 30, 2023, the company had a net income of $3,401,420, consisting of $4,873,014 of interest income and $652,034 of operating expenses[152]. - The company generated non-operating income from interest on cash and cash equivalents from IPO proceeds, with no operating revenues until a Business Combination is completed[132]. Initial Public Offering (IPO) - The company completed its Initial Public Offering on October 19, 2021, raising gross proceeds of $200 million from the sale of 20,000,000 units at $10.00 per unit[133]. - The company raised $4,000,000 in cash underwriting discount from its Initial Public Offering, with a potential total of $4,600,000 if the over-allotment option is exercised in full[161]. - The company has placed $200 million from its IPO proceeds into a Trust Account, which will be invested in U.S. government securities until a Business Combination is completed[137]. - The company incurred additional offering costs of $682,268 related to the Over-Allotment, bringing total proceeds in the Trust Account to $212,407,824[139]. Business Combination - The company has until October 19, 2023, to complete a Business Combination, or it will cease operations and redeem public shares[146]. - The company has until October 19, 2023, to consummate a Business Combination, raising substantial doubt about its ability to continue as a going concern[169]. - If a Business Combination is not consummated by October 19, 2023, there will be a mandatory liquidation and subsequent dissolution of the company[169]. - The company has agreed to pay success fees ranging from $50,000 to $1,250,000 for business combinations[162]. - The company drew $302,500 from Working Capital Loans as of June 30, 2023, to finance transaction costs related to a Business Combination[166]. Financial Position - As of June 30, 2023, the company held cash of $619,774 and current liabilities of $1,108,592[148]. - As of June 30, 2023, the company had $619,774 in its operating bank account and a working capital deficit of $317,967[166]. - The company lacks sufficient financial resources to sustain operations for a reasonable period, which is considered to be one year from the issuance date of the financial statements[169]. - The company has a liquidity need that has been satisfied through various means, including a $25,000 payment from the Sponsor and a loan of approximately $195,000[166]. Compliance and Legal Costs - The company expects to incur significant costs related to being a public company, including legal and compliance expenses[149]. Accounting and Reporting - The company accounts for its ordinary shares subject to possible redemption as temporary equity, presented at redemption value outside of the shareholders' deficit section of the balance sheet[179]. - The company has not made any adjustments in its financial statements regarding the impact of the COVID-19 pandemic, as the specific impact is not readily determinable[168].
pass Digital Acquisition (CDAQ) - 2023 Q2 - Quarterly Report