Financial Performance - The company incurred a net loss of $75,414 for the three months ended March 31, 2023, with operating costs amounting to $939,202[136] - The company has not generated any operating revenues to date and will only generate nonoperating income from interest on cash held in the trust account[135] - Management has raised substantial doubt about the company's ability to continue as a going concern if it cannot complete its initial business combination by March 26, 2024[129] Initial Public Offering - The company completed its initial public offering on March 26, 2021, raising gross proceeds of $250 million from the sale of 25 million units at $10.00 per unit[117] - The underwriters of the initial public offering are entitled to a deferred underwriting discount of $9,625,000, payable only upon completion of a business combination[141] Cash and Investments - As of March 31, 2023, the company had cash outside the trust account of $27,732 available for working capital needs[123] - The company had a total of $275 million placed in the trust account, which is invested in permitted U.S. government securities[118] - The company has raised a total of $1.5 million through an unsecured promissory note from an affiliate of its sponsor, which is available for general working capital purposes[125] Shareholder Actions - Shareholders approved an extension for the company to complete its initial business combination until March 26, 2024, with 25,790,900 Class A ordinary shares redeemed for approximately $263 million[119] - Holders of 25,790,900 Class A ordinary shares exercised their right to redeem shares for cash at approximately $10.20 per share, totaling $263,071,274[146] - As of March 31, 2023, 1,709,100 Class A ordinary shares are subject to possible redemption, presented at redemption value as temporary equity[146] Debt and Liabilities - The company has no long-term debt obligations or capital lease obligations, only incurring monthly fees of up to $15,000 for administrative services[138] - The company issued an unsecured promissory note of up to $1,500,000, with $750,000 outstanding as of March 31, 2023[140] - The company experienced a change in fair value of warrant liabilities amounting to $970,907 for the three months ended March 31, 2023[136] - The company issued 13,000,000 warrants recognized as derivative liabilities, with fair value adjustments at each reporting period[145] Accounting and Compliance - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[151] - The company does not have any off-balance sheet arrangements as of March 31, 2023[150] - The company evaluates estimates related to fair value of financial instruments and accrued expenses, which may differ from actual results[142] - The company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks[144] Promissory Notes - The company has amended and restated the promissory note multiple times, increasing the principal amount from $250,000 to $1,500,000[140]
Disruptive Acquisition I(DISA) - 2023 Q1 - Quarterly Report