Financial Performance - For the three months ended June 30, 2023, the company reported a net loss of $1,416,347, with operating expenses of $1,637,096 and interest income of $368,259 from marketable securities held in the Trust Account[136]. - For the six months ended June 30, 2023, the company had a net loss of $2,889,235, consisting of operating expenses of $3,404,454 and interest income of $811,539 from marketable securities held in the Trust Account[137]. - The company had a net loss of $636,074 for the three months ended June 30, 2022, with operating expenses of $973,852[138]. - The company had a net loss of $1,006,009 for the six months ended June 30, 2022, with operating expenses of $1,586,735[139]. - The net loss attributable to non-redeemable common stock for the six months ended June 30, 2023, was $(3,491,180), compared to $(1,228,985) for the same period in 2022, indicating a significant increase in losses[172]. - The basic and diluted net loss per share for non-redeemable common stock was $(0.53) for the first half of 2023, compared to $(0.19) for the same period in 2022[172]. Business Combination - The company executed a Business Combination Agreement with QT Imaging on December 8, 2022, aiming to merge with the medical device company[118]. - The company incurred significant costs in pursuing its acquisition plans and cannot assure the success of completing its initial business combination[126]. - If the initial business combination is not consummated by September 28, 2023, the Company will redeem Public Shares and liquidate its net assets[161]. Trust Account and Cash Management - As of June 30, 2023, the Trust Account held marketable securities amounting to $32,365,352 and interest receivable of $131,605[149]. - Approximately $31.7 million remained in the trust account after stockholder redemptions on March 24, 2023, which represented about 4.3% of the shares that were part of the Public Units sold in the Offering[133]. - The Company intends to use funds in the Trust Account for working capital to finance operations of the target business post-business combination[157]. - As of June 30, 2023, the Company had cash of $7,480 held outside the Trust Account[158]. 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[135]. Offering and Financing - The Company completed the Offering of 23,000,000 Public Units at a price of $10.00 per unit, generating gross proceeds of $230,000,000[141]. - The Private Placement generated aggregate gross proceeds of $7,950,000 from the sale of 795,000 Private Placement Units at the same price[142]. - Cash used in financing activities for the three months ended June 30, 2023, was $8,989,625, mainly for the redemption of public units[155]. Shareholder Information - For the three months ended June 30, 2023, the net income attributable to common stock subject to possible redemption was $263,562, compared to $210,578 for the same period in 2022, representing a year-over-year increase of approximately 25%[172]. - The basic and diluted net income per share for common stock subject to possible redemption was $0.09 for Q2 2023, up from $0.01 in Q2 2022[172]. - The weighted average common shares subject to redemption decreased from 23,000,000 in 2022 to 3,491,787 in 2023, indicating a reduction in shares outstanding[172]. - The company has classified common stock subject to possible redemption as temporary equity, reflecting its uncertain future redemption rights[173]. Accounting and Valuation - The company accounts for warrants not indexed to its own stock as liabilities at fair value, with changes in fair value recognized in the statements of operations[174]. - The Working Capital Note is recorded at fair value, with differences between face value and fair value recognized as expenses or capital contributions[176]. - The company does not anticipate any material effects from recently issued accounting pronouncements on its financial statements[177].
GigCapital5(GIA) - 2023 Q2 - Quarterly Report