Financial Performance - For the three months ended September 30, 2022, the company reported a net income of $1,826,909 and incurred operating costs of $485,715, primarily due to legal fees [145]. - For the nine months ended September 30, 2022, the company achieved a net income of $5,396,151 with operating costs totaling $4,011,281, again mainly from legal fees [146]. - For the three months ended September 30, 2022, the net income was $1,826,909, compared to $3,896,635 for the same period in 2021, representing a decrease of approximately 53.1% [200]. - The total other income for the three months ended September 30, 2022, was $2,312,624, down from $4,410,373 in the same period of 2021, indicating a decline of about 47.5% [200]. - The company reported a loss from operations of $485,715 for the three months ended September 30, 2022, compared to a loss of $513,738 for the same period in 2021, showing a slight improvement of approximately 5.5% [200]. - For the nine months ended September 30, 2022, the net income was $5,396,151, a decrease of 55.2% compared to $12,035,627 for the same period in 2021 [208]. Trust Account and Investments - As of September 30, 2022, the company had $276 million placed in a Trust Account, which is invested in U.S. government securities [170][175]. - The company generated income of $1,248,046 from its trust account for the three months ended September 30, 2022, and $1,662,587 for the nine months ended September 30, 2022 [145][146]. - The Trust Account held $277,675,932 in marketable securities as of September 30, 2022, compared to $276,013,345 at the end of 2021, showing a slight increase of 0.6% [253]. - The company has a trust account with $276,000,000 from the IPO proceeds, which is invested in U.S. government securities [212]. Business Combination and Operations - The company is required to complete a business combination by February 11, 2023, or it will cease operations and redeem public shares [136][168]. - The company has faced challenges in completing a business combination due to market conditions and the termination of the Brivo Business Combination [166][168]. - The Business Combination Agreement was terminated on August 10, 2022, and if another business combination is not completed by February 11, 2023, the company may cease operations and liquidate [184]. - The company has not engaged in any operations or generated revenues to date, with activities limited to organizational efforts and preparing for an initial business combination [143]. - The Company has not commenced any operations and will not generate operating revenues until after the completion of its initial business combination [239]. Financial Position and Liabilities - As of September 30, 2022, the accumulated deficit was $(18,119,972), an increase from $(18,698,835) as of June 30, 2022 [201]. - Current liabilities rose significantly to $8,137,780 from $4,181,951, reflecting a 94% increase [234]. - Total liabilities decreased to $18,154,535 from $21,943,551, a reduction of approximately 17% [234]. - The accumulated deficit improved to $(18,119,972) from $(21,853,536), indicating a reduction in losses of about 17% [234]. Shareholder and Equity Information - The company has determined that all outstanding Class A ordinary shares should be presented as temporary equity due to changes in accounting methodology [159]. - The weighted average redeemable shares outstanding remained constant at 27,600,000 for both the three months ended September 30, 2022, and September 30, 2021 [200]. - The basic and diluted net income per redeemable share for the three months ended September 30, 2022, was $0.05, down from $0.11 for the same period in 2021, a decrease of approximately 54.5% [200]. - The Company is authorized to issue a total of 200,000,000 Class A ordinary shares, with none issued and outstanding as of September 30, 2022 [297]. Regulatory and Compliance Issues - The company identified a material weakness in internal control over financial reporting related to the accounting of complex financial instruments as of June 1, 2021, and is actively working on remediation efforts [179]. - The company has received multiple demand letters from purported shareholders regarding the Brivo Business Combination, alleging incomplete and misleading disclosures [183]. - The Company has not recognized any unrecognized tax benefits as of September 30, 2022, and December 31, 2021 [286]. Cash Flow and Financing Activities - The net cash used in operating activities was $(152,191), significantly improved from $(1,391,297) in the prior year [208]. - The company reported a net cash provided by financing activities of $138,000, compared to $277,596,466 in the previous year, indicating a substantial decrease in financing activity [208]. - The company received a capital contribution from the sponsor amounting to $97,000 during the third quarter of 2022 [218]. - The Company raised gross proceeds of $276.0 million from its IPO on February 11, 2021, after incurring offering costs of approximately $15.8 million [281]. Administrative and Operational Costs - The Company incurred $45,000 and $135,000 in administrative support fees for the three and nine months ended September 30, 2022, respectively [291]. - The Company has agreed to pay the sponsor $15,000 per month for office space and administrative support services since the IPO [291]. - The total transaction costs related to the IPO amounted to $16,505,915, which included $5,520,000 in underwriting fees and $9,660,000 in deferred underwriting fees [225].
Crown PropTech Acquisitions(CPTK) - 2022 Q3 - Quarterly Report