Financial Performance - For the three months ended June 30, 2022, the company reported a net income of $212,753, with operating costs of $2,311,262 primarily due to legal fees[147]. - For the six months ended June 30, 2022, the company had a net income of $3,569,242, with operating costs totaling $3,525,566[148]. - The company generated non-operating income of $392,015 from its trust account for the three months ended June 30, 2022[147]. - The company incurred total legal fees of $6,248,298 related to business combinations, with 20% or $1,249,660 contingent upon the consummation of a business combination[166]. Initial Public Offering - The company completed its Initial Public Offering on February 11, 2021, raising gross proceeds of $276 million from the sale of 27,600,000 units at $10.00 per unit[134]. - The company incurred total transaction costs of $16,505,915 related to the Initial Public Offering, including $5,520,000 in underwriting fees[152]. - The company paid a fixed underwriting discount of $5,520,000 and a deferred underwriting discount of $9,660,000, contingent upon completing an initial business combination[163]. - The company placed approximately $276 million in a trust account, invested in U.S. government securities, until a business combination is completed[136]. Financial Position and Liquidity - As of June 30, 2022, the company had a working capital deficit of $7,616,812, with cash outside the trust account amounting to $4,578[155]. - The company’s liquidity needs have been satisfied through various sources, including proceeds from the Initial Public Offering and the sale of Private Placement Warrants[156]. - The company lacks sufficient financial resources to sustain operations for more than one year from the issuance date of the financial statements, raising concerns about its ability to continue as a going concern[159]. - If a business combination is not completed by February 2023, the company faces mandatory liquidation and dissolution[160]. Operations and Business Strategy - The company has not engaged in any operations or generated revenues to date, focusing on organizational activities and identifying a target company for its initial business combination[146]. - The company entered into a convertible note with CEO Richard Chera for a principal amount of $1,500,000, with an outstanding balance of $450,000 as of June 30, 2022[158]. Internal Controls and Compliance - A material weakness in internal control over financial reporting was identified due to errors in the classification of warrants and Class A ordinary shares, prompting remediation efforts[185]. - The Chief Executive Officer and principal financial officer concluded that the disclosure controls and procedures related to financial instruments were not effective as of June 30, 2022[189]. - There were no changes in internal control over financial reporting from April 1, 2022, through June 30, 2022, that materially affected internal control over financial reporting[190]. Risk Management - The company has not engaged in any hedging activities and does not expect to do so in the future, minimizing exposure to market risk[180]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[177]. Equity and Shareholder Matters - As of June 30, 2022, 27,600,000 Class A ordinary shares are classified as temporary equity due to redemption rights, impacting the balance sheet presentation[170].
Crown PropTech Acquisitions(CPTK) - 2022 Q2 - Quarterly Report