Financial Performance - The Company reported a net income of $17,134 for the three months ended March 31, 2023, compared to a net loss of $62,218 for the same period in 2022[118]. - For the nine months ended March 31, 2023, the Company had a net income of $288,612, up from a net loss of $83,156 in the same period in 2022[119]. - The Company has incurred net cash used in operating activities of $659,638 for the nine months ended March 31, 2023[121]. - The Company has a history of losses and insufficient liquidity, raising substantial doubt about its ability to continue as a going concern[124]. Capital Structure - The Company generated gross proceeds of $78,000,000 from its Initial Public Offering of 7,800,000 Units on December 16, 2021[120]. - The Business Combination Agreement includes the issuance of 26,732,672 ordinary shares at a deemed price of $10.10 per share, totaling $270,000,000[113]. - Up to an additional 5,400,000 ordinary shares may be issued as contingent post-closing earnout consideration based on performance milestones from 2023 to 2027[114]. - The company has 7,800,000 ordinary shares with a redemption feature, classified outside of permanent equity due to SEC guidance[131]. - The carrying value of redeemable ordinary shares is adjusted to equal the redemption value at the end of each reporting period[132]. Liquidity and Cash Management - As of March 31, 2023, the Company had cash of $123,327 held outside the Trust Account and a working capital deficit of $1,046,758[123]. - The Company has agreed to maintain a minimum cash balance of $5,600,000 at the time of closing the Business Combination[116]. Business Combination - The closing of the Business Combination is expected to occur no later than September 30, 2023[115]. Accounting and Risk Management - As of March 31, 2023, the company reported no dilutive securities, making diluted income (loss) per share equal to basic income (loss) per share[133]. - Management believes that recently issued accounting standards will not materially affect the company's financial statements[134]. - There were no off-balance sheet arrangements as of March 31, 2023[135]. - The company was not subject to any market or interest rate risk as of March 31, 2023[136].
Kairous Acquisition (KACL) - 2023 Q3 - Quarterly Report