Financial Performance - The company reported a net loss of $1,472,888 for the three months ended March 31, 2023, compared to a net loss of $369,935 for the same period in 2022, indicating an increase in losses [128][129]. - For the three months ended March 31, 2023, cash used in operating activities was $546,879, consisting of a net loss of $1,472,888 [139]. - The net loss attributable to non-redeemable common stock for the three months ended March 31, 2023, was $1,811,271, compared to $382,333 in the same period of 2022, indicating a larger loss year-over-year [160]. - The basic and diluted net loss per share for non-redeemable common stock was $(0.28), compared to $(0.06) in the prior year, reflecting a worsening loss per share [160]. Revenue Generation - The company has not generated any revenues to date and does not expect to do so until after the completion of its initial business combination [126][127]. Operating Expenses - Operating expenses for the three months ended March 31, 2023, were $1,767,358, which reflects the company's ongoing costs in preparation for its initial business combination [128]. - The company incurred significant costs related to its acquisition plans and anticipates increased expenses due to its status as a public company [118][127]. Trust Account and Cash Position - As of March 31, 2023, approximately $31.7 million remained in the trust account after stockholder redemptions and deposits related to extensions of the business combination period [124]. - As of March 31, 2023, the Company held cash and marketable securities of $31,670,407 in the Trust Account, with interest receivable of $158,291 [138]. - The Company has a remaining cash balance of $356,141 outside the Trust Account as of March 31, 2023 [146]. - The Company intends to use funds in the Trust Account for working capital to finance operations of the target business post-business combination [145]. Business Combination - The company has extended the deadline for completing its initial business combination to September 28, 2023, following stockholder approvals [119][120]. - The company has entered into a Business Combination Agreement with QT Imaging, a medical device company, to pursue its initial business combination [112][125]. - If the initial business combination is not consummated by September 28, 2023, the Company will redeem Public Shares and liquidate its net assets [149]. Financing Activities - The company completed the Offering of 23,000,000 Public Units at $10.00 per unit, generating gross proceeds of $230,000,000 [131]. - The company also raised $7,950,000 from the sale of 795,000 Private Placement Units at $10.00 per unit, contributing to total proceeds of $232,300,000 placed in the Trust Account [132][133]. - Transaction costs for the Offering amounted to $13,193,740, including $4,600,000 in underwriting fees and $9,200,000 in deferred underwriting fees [134]. - Cash used in financing activities for the three months ended March 31, 2023, was $9,484,625, mainly for the redemption of public units [142]. Shareholder Equity - For the three months ended March 31, 2023, the net income attributable to common stock subject to possible redemption was $338,383, compared to $12,398 in the same period of 2022, representing a significant increase [160]. - The basic and diluted net income per share for common stock subject to possible redemption was $0.09, up from $0.00 in the prior year [160]. - Common stock subject to possible redemption is classified as temporary equity, reflecting the company's compliance with accounting standards regarding redemption rights [161]. Accounting and Financial Reporting - The company accounts for warrants not indexed to its own stock as liabilities at fair value, with changes recognized in the statements of operations [162]. - The company has elected to account for its Working Capital Note under the fair value option, impacting its financial reporting and potential gains or losses [163]. - Recent accounting pronouncements are not expected to have a material effect on the company's financial statements, indicating stability in accounting practices [165].
GigCapital5(GIA) - 2023 Q1 - Quarterly Report