Financial Performance - For the three months ended March 31, 2022, the company reported a net income of $7,053,847, driven by a change in fair value of warrant liabilities of $7,514,642 and interest earned on investments held in the Trust Account of $4,329, offset by formation and operating costs of $465,124 [134]. - For the three months ended March 31, 2021, the company reported a net income of $3,221,641, which included a change in fair value of warrant liabilities of $3,810,600 and interest income of $7,140 [135]. - The company incurred cash used in operating activities of $303,514 for the three months ended March 31, 2022 [137]. Trust Account and Investments - As of March 31, 2022, the company had U.S. Treasury Funds held in the Trust Account amounting to $253,031,569, consisting of fixed income securities [139]. - The company generated gross proceeds of $253,000,000 from the Initial Public Offering of 25,300,000 Units at $10.00 per Unit, along with an additional $7,060,000 from the sale of 4,706,667 Private Placement Warrants at $1.50 each [136]. Financial Position - The company had a working capital deficit of $2,287,950 as of March 31, 2022, with $465,918 in its operating bank account [140]. - The company has no long-term debt or off-balance sheet arrangements as of March 31, 2022 [145]. Business Combination and Going Concern - The company has until February 17, 2023, to consummate a Business Combination, raising substantial doubt about its ability to continue as a going concern if not completed by that date [142]. - The underwriters are entitled to a deferred fee of $0.35 per Unit, totaling $8,855,000, payable only if the company completes a Business Combination [147]. Accounting Standards - The company recognizes 8,433,333 Public Warrants and 4,706,667 Private Placement Warrants as liabilities at fair value, subject to re-measurement at each balance sheet date [150]. - The FASB issued ASU No. 2020-06 in August 2020, simplifying accounting for convertible instruments and affecting diluted earnings per share calculations [155]. - ASU 2020-06 will be effective for fiscal years beginning after December 15, 2023, with early adoption permitted [155]. - Management does not anticipate any material effects on financial statements from other recently issued accounting standards [156].
Spectral AI(MDAI) - 2022 Q1 - Quarterly Report