IPO and Fundraising - The company completed its Initial Public Offering (IPO) on December 14, 2021, raising gross proceeds of $200 million from the sale of 20 million units at $10.00 per unit[123]. - An additional $15.62 million was generated from the partial exercise of the underwriters' over-allotment option, incurring approximately $859,320 in underwriting fees[123]. - Following the IPO, $219,936,490 was placed in a trust account, with a per unit value of $10.20, invested in U.S. government securities[126]. Business Combination and Shareholder Actions - On June 12, 2023, the company extended the deadline for completing a business combination until July 14, 2024, with a monthly extension fee of $50,000[127]. - A total of 19,824,274 shares were redeemed by public shareholders at $10.54 per share, resulting in $208,992,255 being removed from the trust account[129]. - The company must complete an initial business combination with a fair market value of at least 80% of the net assets held in the trust account[132]. - Public shareholders will have the opportunity to redeem their shares for a pro rata portion of the trust account, initially anticipated to be $10.20 per share[132]. - The initial shareholders have agreed to waive their liquidation rights regarding Founder Shares and Private Placement Warrants if the company fails to complete a business combination within the specified period[138]. - The sponsor is liable for any claims that reduce the trust account funds below $10.20 per public share, ensuring protection for the amounts held in the trust account[139]. Financial Position and Operations - As of June 30, 2023, the company had $212 in its operating bank account and a working capital deficit of approximately $(73,251) compared to $401,275 and $468,359, respectively, as of December 31, 2022[141]. - The company completed its IPO, releasing capital for general working capital purposes, but anticipates that cash held outside the Trust Account may not be sufficient to operate for at least the next 12 months if a business combination is not consummated[142][143]. - The company has until August 14, 2023, to consummate a business combination, with the option to extend the Termination Date until June 14, 2024, by depositing $50,000 per month into the trust account[144]. - A significant decrease in the Trust account balance occurred, dropping from $225,411,726 as of March 31, 2023, to $18,603,504 as of June 30, 2023, due to the redemption of 19,824,274 Class A ordinary shares totaling $208,992,255[146]. - For the three months ended June 30, 2023, the company reported a net income of $3,421,457, consisting of interest income of $2,134,033, offset by formation and operating costs of $300,773[146]. - The company recognized $20,000 and $50,000 for administrative support services expenses for the three and six months ended June 30, 2023, respectively[148]. - The company has no long-term debt obligations or significant liabilities other than those mentioned in the financial statements[147]. - The company can raise additional capital through Working Capital Loans from the New Sponsor and certain officers and directors, but there is no obligation for them to advance funds[145]. - The company has not engaged in any operations or generated revenues to date, with all activities focused on preparing for the IPO and business combination[146]. - The company has identified substantial doubt about its ability to continue as a going concern for the next twelve months if a business combination is not completed[145]. Regulatory and Market Considerations - Inflation did not have a material impact on the company's business, revenues, or operating results during the reported period[166]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions[167]. - The company has elected not to opt out of the extended transition period for new or revised financial accounting standards, which may complicate financial statement comparisons with other public companies[168]. - As a smaller reporting company, the company is not required to provide certain market risk disclosures[170].
Healthcare AI Acquisition (HAIA) - 2023 Q2 - Quarterly Report