Financial Position - As of December 31, 2023, the company had $50,772,949 in cash and marketable securities held in the trust account, a decrease from $104,162,029 as of December 31, 2022[13]. - The company has $754,748 outstanding under working capital loans as of December 31, 2023, compared to $0 borrowed under such loans as of December 31, 2022[5]. - The company has not experienced losses on its cash account, which may exceed the Federal depository insurance coverage of $250,000, indicating no significant credit risk exposure[38]. - The net proceeds from the initial public offering have been invested in U.S. government treasury bills or money market funds, minimizing exposure to interest rate risk[278]. Initial Public Offering - The company raised gross proceeds of $100,000,000 from its Initial Public Offering of 10,000,000 units at $10.00 per unit[17]. - The company incurred transaction costs of approximately $6,917,226 related to its Initial Public Offering, with $3,500,000 allocated for deferred underwriting commissions[18]. Business Combination - The company approved an amendment to extend the business combination deadline to January 13, 2024, with a reduced monthly extension fee of $150,000[6]. - The company has the ability to convert up to $1,500,000 of working capital loans into units at a price of $10.00 per unit upon completion of a business combination[5]. - The structure of any Business Combination and related equity issuances may impact the Company's excise tax liability, which is still under evaluation[32]. Taxation - The effective tax rate for the year ended December 31, 2023, was (2405.29)%, significantly differing from the statutory tax rate of 21% due to transaction costs and valuation allowances[29]. - The Company is monitoring updates related to the IR Act to determine if future adjustments to its tax provision are necessary[34]. - The Company has no unrecognized tax benefits or amounts accrued for interest and penalties as of December 31, 2023, and 2022[28]. - As of December 31, 2023, the Company recorded an excise tax liability of $584,031 due to redemptions by public stockholders in 2023[34]. Administrative Expenses - The company incurred $120,000 and $110,000 in administrative service fees for the years ended December 31, 2023, and 2022, respectively[8]. - As of December 31, 2023, the total amount due for administrative services was $230,000, up from $110,000 in 2022[8]. Stock Redemption - The Company has 4,522,582 Class A Common Stocks outstanding subject to possible redemption as of December 31, 2023, down from 10,159,069 in 2022[36]. - The redemption value of the Class A common stocks is set at $10.15 per share, and changes in redemption value are reflected in additional paid-in capital or accumulated deficit[35]. - The Company will not redeem Public Shares if it would cause net tangible assets to fall below $5,000,001, ensuring compliance with its charter[35]. - The Company’s charter does not specify a maximum redemption threshold, but it maintains a minimum net tangible asset requirement[35]. Earnings Per Share - There were no dilutive securities or contracts that could potentially be converted into common stock for the years ended December 31, 2023, and 2022, resulting in diluted loss per share being the same as basic loss per share[37].
Broad Capital Acquisition p(BRAC) - 2023 Q4 - Annual Report