Financial Performance - As of June 30, 2022, the company reported a net loss of $162,106 for the three months ended, primarily due to formation and operating costs of $478,919, offset by interest income of $316,813[111]. - For the six months ended June 30, 2022, the company had a net loss of $2,926,101, consisting of formation and operating costs of $3,266,559, with interest income totaling $340,458[112]. - The company has not generated any operating revenues to date and will only do so after completing a Business Combination[110]. - The company expects to incur increased expenses as a public company, particularly for legal and compliance costs, as well as due diligence expenses[110]. - The company has a liquidity condition that raises substantial doubt about its ability to continue as a going concern for the next year[118]. Capital Structure - The company raised $234,600,000 from the IPO, which was deposited into a Trust Account, with funds invested in U.S. government treasury obligations[106]. - The company incurred transaction costs of $16,664,843 related to the IPO, including $3,173,059 in underwriting commissions[104]. - The company intends to use substantially all funds in the Trust Account to complete its initial Business Combination and may withdraw interest to pay taxes[115]. - The company received a loan of up to $300,000 from its sponsor for IPO expenses, with no borrowings under the promissory note as of June 30, 2022[122][126]. - The sponsor paid $25,000 for offering costs in exchange for 7,187,500 founder shares, resulting in a purchase price of approximately $0.003 per share[123]. - The company’s initial shareholders collectively own approximately 25% of the issued and outstanding shares after the IPO[123]. - The sponsor, Cantor, and CCM purchased 1,060,000 Class A ordinary shares at a price of $10.00 per share in a private placement, totaling $10,060,000[128]. Business Combination and Future Plans - The company has until January 29, 2023, to complete a Business Combination, after which it will face mandatory liquidation if unsuccessful[119]. Accounting and Reporting - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[130]. - The company accounts for ordinary shares subject to possible redemption as temporary equity, adjusting the carrying value to equal the redemption value at each reporting period[133]. - The net loss per ordinary share is calculated using the two-class method, with the diluted loss per share not considering the effect of warrants issued in connection with the IPO[135]. - The company is currently assessing the impact of ASU 2020-06, effective January 1, 2024, on its financial position and results of operations[136]. Financial Position - The company had cash of $587,576 and a working capital deficit of $2,114,704 as of June 30, 2022, following the IPO which provided $2,800,472 in cash[113]. - As of June 30, 2022, the company had no off-balance sheet financing arrangements or long-term debt obligations[120][121].
Innovative International Acquisition (IOAC) - 2022 Q2 - Quarterly Report