dMY Squared Technology (US:DMYY)2023-08-13 16:00Financial Position - As of June 30, 2023, dMY Squared Technology Group, Inc. had a cash and working capital deficit of approximately $724,000, including tax obligations of about $342,000[145]. - The company has incurred significant costs in pursuit of acquisition plans and expects to continue doing so[145]. - The management has substantial doubt about the company's ability to continue as a going concern if a Business Combination is not completed[148]. - The Inflation Reduction Act imposes a 1% excise tax on stock repurchases, which may affect the company's cash available for Business Combinations[152]. - The company has not commenced any operations and will not generate operating revenues until after completing a Business Combination[134]. - As of June 30, 2023, the company did not have any off-balance sheet arrangements or contractual obligations[166]. Initial Public Offering (IPO) - The Initial Public Offering (IPO) generated gross proceeds of $60.0 million from the sale of 6,000,000 units at $10.00 per unit, with offering costs of approximately $3.7 million[135]. - An additional $3.2 million was raised from the underwriter's partial over-allotment of 319,000 units[135]. - The total net proceeds placed in the Trust Account amounted to approximately $64.1 million, invested in U.S. government securities[139]. - The underwriter received an underwriting discount of approximately $0.8 million upon the closing of the Initial Public Offering, with an additional deferred fee of $2.1 million payable upon completion of a Business Combination[162]. Business Combination - The company has 15 months from the IPO closing date to complete an initial Business Combination, extendable up to 21 months under certain conditions[142]. - If a Business Combination is not completed within the specified period, the company will cease operations and redeem Public Shares at a price equal to the amount in the Trust Account[143]. - The Sponsor extended Overfunding Loans to the company totaling $947,850, which will be repaid or converted into shares upon the closing of the initial Business Combination[164]. Financial Performance - For the three months ended June 30, 2023, the company reported a net income of approximately $1.2 million, driven by a change in fair value of derivative warrant liabilities of approximately $907,000 and interest income of approximately $669,000[155]. - For the six months ended June 30, 2023, the company achieved a net income of approximately $1.7 million, with approximately $1.5 million from changes in fair value of derivative warrant liabilities and approximately $1.4 million from interest income[156]. - The company incurred approximately $742,000 in general and administrative expenses for the six months ended June 30, 2023, including $60,000 paid to the Sponsor[156]. - The company has recorded an outstanding balance of $10,000 in accrued expenses related to administrative services as of June 30, 2023[159]. - The company entered into an agreement to pay the Sponsor $10,000 per month for office space and administrative services, with a total of $30,000 recorded for the three months ended June 30, 2023[159]. - The company reported a net loss of $41,000 for the period from February 15, 2022, through June 30, 2022, solely from general and administrative expenses[158]. Regulatory Classification - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[167].