Financial Performance - As of September 30, 2022, the company reported a net loss of $1,348,845 for the three months ended, with formation and operating costs amounting to $2,407,767, offset by interest income of $1,058,906 from marketable securities [127]. - For the nine months ended September 30, 2022, the company had a net loss of $4,274,946, consisting of formation and operating costs of $5,674,326, with interest income from marketable securities totaling $1,399,325 [128]. - The company has not engaged in any operations or generated revenues to date, with all activities focused on organizational tasks and preparing for the IPO [126]. Cash and Working Capital - The company had cash of $85,969 and a working capital deficit of $4,389,396 as of September 30, 2022, following the IPO which provided $2,800,472 in cash available [129]. - As of September 30, 2022, the company held $85,969 in cash outside of the Trust Account, which may not be sufficient to operate for at least the next 12 months if a Business Combination is not consummated [137]. - The company has $1,450,000 of proceeds available outside the trust account, primarily for identifying and evaluating target businesses and performing due diligence [135]. IPO and Business Combination - The company completed its IPO on October 29, 2021, raising a total of $236,050,000, with $234,600,000 deposited into a non-interest-bearing trust account [132]. - The company has until January 29, 2023, to complete its initial Business Combination, or it will cease operations and redeem public shares [119]. - The company has until January 29, 2023, to consummate a Business Combination, after which mandatory liquidation may occur if not completed [140]. - The company anticipates using substantially all funds in the trust account for the initial business combination, with remaining proceeds allocated for working capital and growth strategies [134]. Expenses and Financial Obligations - The company expects to incur increased expenses as a result of being a public company, particularly for legal, financial reporting, and due diligence expenses [126]. - The company has incurred transaction costs of $16,664,843 related to the IPO, including $3,173,059 in underwriting commissions [116]. - The company issued an unsecured promissory note to the Sponsor for up to $500,000, which can be converted into Class A ordinary shares at a price of $10.00 per share [133]. - The company has agreed to reimburse the sponsor for office space and administrative services at a rate of $10,000 per month [146]. Ownership and Equity - The company’s sponsor, officers, and directors collectively own approximately 25% of the issued and outstanding shares after the IPO [145]. - Ordinary shares subject to possible redemption are classified as temporary equity due to certain redemption rights considered outside of the company's control [157]. - The company applies the two-class method for calculating net income (loss) per ordinary share, dividing pro rata net income between redeemable and non-redeemable ordinary shares [158]. - The diluted income (loss) per share calculation excludes the effect of IPO-related warrants as their exercise is contingent on future events, making their inclusion anti-dilutive [158]. Regulatory and Reporting Requirements - The company is required to register the offer and sale of certain securities under the Securities Act, allowing holders to make up to three demands for registration [152]. - The company may rely on reduced reporting requirements under the JOBS Act, which could affect the comparability of its financial statements with non-emerging growth companies [155]. - Management does not anticipate that recently issued accounting standards will materially affect the company's financial statements [159]. - There are no applicable quantitative and qualitative disclosures about market risk for the company [160]. Tax Implications - The company is subject to a new 1% excise tax on stock repurchases effective January 1, 2023, which may impact cash available for Business Combinations [124]. - The company has no long-term debt or off-balance sheet financing arrangements as of September 30, 2022 [141].
Innovative International Acquisition (IOAC) - 2022 Q3 - Quarterly Report