ption Growth Acquisition (IGTA) - 2023 Q2 - Quarterly Report

Financial Performance - For the six months ended June 30, 2023, the company reported a net income of $707,091, compared to a net loss of $381,831 for the same period in 2022[60]. - The net loss including accretion of carrying value to redemption value for the six months ended June 30, 2023, was $(576,128), compared to $(557,417) for the same period in 2022[60]. - The effective tax rate for the six months ended June 30, 2023, was 33.07%, significantly higher than 1.75% for the same period in 2022[57]. - For the six months ended June 30, 2023, the basic and diluted net income per share was $0.13, compared to a loss of $(0.03) for the same period in 2022[61]. - The company reported an allocation of net income of $867,880 for the six months ended June 30, 2023, compared to a net loss of $(268,631) for the same period in 2022[61]. Stock and Shares - As of June 30, 2023, the company had 4,476,636 shares of common stock subject to possible redemption, down from 10,350,000 shares as of December 31, 2022[53]. - As of June 30, 2023, the common stock subject to possible redemption was $46,923,954, down from $106,051,986 as of December 31, 2022[67]. - The weighted-average shares outstanding for the three months ended June 30, 2023, was 4,476,636, compared to 10,350,000 for the same period in 2022[61]. - The company issued 2,587,500 founder shares for an aggregate purchase price of $25,000 on March 4, 2021[69]. - The fair value of the Founder Shares subject to transfer to Non-Redeeming Stockholders was estimated at $452,026, or $0.35 per share[73]. Tax and Compliance - The company incurred $604,113 in excise tax related to stock buybacks for the six months ended June 30, 2023, compared to $0 for the same period in 2022[59]. - The company has not recognized any unrecognized tax benefits or accrued interest and penalties as of June 30, 2023[55]. - The company has elected not to opt out of the extended transition period for new or revised financial accounting standards[48]. Assets and Liabilities - The fair value of certain assets and liabilities approximates the carrying amounts represented in the balance sheet as of June 30, 2023[54]. - As of June 30, 2023, the fair value of U.S. Treasury Securities held in the Trust Account was $46,923,954, down from $106,047,848 as of December 31, 2022[85][87]. - The Company has no exposure to market or interest rate risk as of June 30, 2023, with net proceeds from the Initial Public Offering invested in U.S. government treasury bills or money market funds[91]. Business Operations - The company is obligated to pay $10,000 monthly for administrative services, which will terminate upon completion of a Business Combination[72]. - 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[88]. Warrants and Rights - The Public Warrants will become exercisable on the later of the completion of a Business Combination or 15 months from the closing of the IPO[78]. - The Company has the option to require holders of Public Warrants to exercise them on a "cashless basis" if called for redemption[81]. - Holders of founder shares and private warrants have registration rights that can be exercised under certain conditions, including after a Business Combination[89]. - The Company will not adjust the warrants for issuances of common stock at a price below the exercise price[81]. - If the Company fails to complete a Business Combination within the Combination Period, the warrants may expire worthless[81]. Fair Value Measurement - The fair value measurement hierarchy includes Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs) for classifying assets and liabilities[82][83]. - The Company seeks to maximize the use of observable inputs in measuring the fair value of its assets and liabilities[82]. - The Company is committed to paying the Deferred Discount to the underwriter upon consummation of the business combination[90].