ption Growth Acquisition (IGTA) - 2023 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2023, the net income was $487,015 compared to a net loss of $217,899 for the same period in 2022, resulting in a basic and diluted net income per share of $0.05[63] - The effective tax rate for the three months ended March 31, 2023, was 31.9%, compared to 2.86% for the same period in 2022, primarily due to the valuation allowance on deferred tax assets[60] Stock and Equity - The company sold 10,350,000 units in its Initial Public Offering (IPO) at a purchase price of $10.00 per unit, including a full exercise of the underwriters' over-allotment option[64] - As of March 31, 2023, the common stock subject to possible redemption was valued at $46,114,476, down from $106,051,986 as of December 31, 2022[68] - The Company’s common stock features certain redemption rights that are considered to be outside of its control, affecting its classification as temporary equity[52] - The company issued 2,587,500 founder shares to the initial shareholder for an aggregate purchase price of $25,000[70] Cash and Investments - The Company did not have any cash equivalents as of March 31, 2023, and December 31, 2022[50] - The Company’s cash and investments held in trust account were primarily in money market funds invested in U.S. Treasury securities as of March 31, 2023[50] - The fair value of U.S. Treasury Securities held in the Trust Account is $107,173,069, compared to $106,047,848 as of December 31, 2022, reflecting an increase of approximately 1.06%[86] - The Company has not experienced losses on its cash account and believes it is not exposed to significant credit risks[63] Tax and Regulatory Matters - The Company has not recognized any unrecognized tax benefits or accrued interest and penalties as of March 31, 2023, and December 31, 2022[58] - The Company is classified as an "emerging growth company" and has opted not to comply with new or revised financial accounting standards until private companies are required to do so[46] Liabilities and Obligations - The Company incurred $604,113 in excise tax related to stock buybacks for the three months ended March 31, 2023, while there were no such expenses in the same period of 2022[61] - The company is obligated to pay a monthly fee of $10,000 for administrative services, which commenced on March 4, 2021[73] - The company had a temporary advance of $199,875 from the Sponsor as of March 31, 2023, compared to $181,835 as of December 31, 2022[72] - The Company is committed to paying the Deferred Discount to the underwriter upon consummation of the business combination, which can be paid in cash[90] Fair Value and Measurement - The Company’s financial instruments' fair value approximates their carrying amounts due to short maturities as of March 31, 2023[57] - The Company utilizes a fair value hierarchy for asset and liability measurement, with Level 1 inputs based on quoted prices in active markets for identical assets or liabilities[83] Future Considerations - The Company is currently evaluating the potential negative impact of the COVID-19 pandemic on its financial position and operations, although specific effects are not determinable at this time[87] - The Public Warrants will become exercisable upon the completion of a Business Combination or 15 months from the closing of the IPO[79] - The Company has entered into a registration rights agreement that allows holders of Founder Shares and Private Warrants to exercise registration rights prior to the Proposed Public Offering[88] Other Financial Metrics - The company recognized an accretion of carrying value to redemption value of $473,741 for the three months ended March 31, 2023[68] - The estimated fair value of the Founder Shares to be transferred to Non-Redeeming Stockholders was $452,026, or $0.35 per share[75]