Financial Performance - The company had a net income of approximately $2,731,476 for the three months ended September 30, 2022, which included a gain on the change in fair value of warrants of $1,261,428 and interest income of $36,037[110]. - For the nine months ended September 30, 2022, the company reported a net income of $10,259,891, primarily driven by a change in the fair value of warrants amounting to $9,866,638[112]. - The company incurred $1,135,308 in formation and operating costs for the nine months ended September 30, 2022[112]. Cash and Capital Structure - As of September 30, 2022, the company had $130,665 in its operating bank account and negative working capital of approximately $1,025,190[114]. - The company generated gross proceeds of $276,000,000 from its IPO on March 9, 2021, selling 27,600,000 units at a price of $10.00 per unit[105]. - The private sale of 5,013,333 Private Placement Warrants generated gross proceeds of $7,520,000 at a purchase price of $1.50 per warrant[106]. - The company may need to obtain additional financing to complete its initial business combination or to meet obligations if cash on hand is insufficient[120]. Business Operations - The company has not engaged in any operations or generated any revenues to date, with activities focused on organizational tasks and identifying a target company for its initial business combination[109]. - If the company is unable to complete a business combination by March 8, 2023, it will cease operations except for the purpose of liquidating[121]. Financial Instruments and Accounting - The company evaluates its financial instruments to determine if they are derivatives or contain embedded derivatives, with changes in fair value reported in the statements of operations[128]. - Warrants have been determined to be a derivative instrument[128]. - The company allocates IPO proceeds between Class A common stock and warrants using the residual method, prioritizing the fair value of the warrants[129]. - Management believes that recently issued accounting standards will not have a material effect on the financial statements if adopted[130]. - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures[131]. Cash Flows - There were no cash flows from investing activities for the nine months ended September 30, 2022, while $276,009,983 was used in net cash from investing activities in the same period of 2021[118].
Iris Acquisition p(IRAA) - 2022 Q3 - Quarterly Report