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Relativity Acquisition (RACY) - 2022 Q1 - Quarterly Report
Relativity Acquisition Relativity Acquisition (US:RACY)2022-05-13 22:41

Financial Performance - As of March 31, 2022, the company reported a net income of $1,389,668, which includes $13,827 from investment income and a change in fair value of warrant liability of $1,894,764, offset by formation and operating costs of $393,748 and warrant issuance costs of $125,175[105]. - The company had $1,201,082 in cash and working capital as of March 31, 2022, excluding franchise tax payable, and net of interest income from the trust account, totaling $1,407,365[106]. - The provision for income taxes was deemed immaterial for the three months ended March 31, 2022[120]. Initial Public Offering (IPO) - The company completed its initial public offering on February 15, 2022, raising gross proceeds of $143,750,000 from the sale of 14,375,000 units at $10.00 per unit, including 1,875,000 units from the underwriters' over-allotment option[106]. - Following the IPO, $146,625,000 of net proceeds was placed in a trust account maintained by a trustee, which the company intends to use for its initial business combination[109]. - Transaction costs related to the IPO amounted to $3,890,326, which included $1,437,500 in underwriting commissions and $1,972,398 for the excess fair value of Class B common stock issued to underwriters[108]. Future Financing and Business Operations - The company does not anticipate needing to raise additional funds to meet operating expenditures post-IPO, but may require additional financing to complete a business combination or to redeem public shares[112]. - Various factors, including economic downturns and geopolitical instability, may adversely affect the company's ability to complete an initial business combination[126]. Taxation and Off-Balance Sheet Arrangements - The company has identified the United States as its only major tax jurisdiction and does not expect significant changes in unrecognized tax benefits over the next twelve months[119]. - The company has not engaged in any off-balance sheet arrangements as of March 31, 2022[125].