Financial Performance - The company reported a net loss of $1,301,763 for the three months ended March 31, 2023, compared to a net income of $1,389,668 for the same period in 2022[124][125]. - The company has not commenced any operations and will not generate operating revenues until after completing a business combination[123]. Financial Position - As of March 31, 2023, the company had $772,410 in its operating bank account and working capital of $52,708, excluding franchise and income tax payable[126]. - As of March 31, 2023, 153,295 shares of Class A common stock subject to possible redemption are presented at redemption value as temporary equity[145]. - Following the redemptions, there were 153,295 public shares outstanding and a total of 807,045 shares of Class A common stock outstanding as of March 31, 2023[146]. - The company does not have any off-balance sheet arrangements as of March 31, 2023[150]. Initial Public Offering - The company generated gross proceeds of $143,750,000 from its initial public offering of 14,375,000 units at $10.00 per unit[126]. - A total of $146,625,000 from the net proceeds of the initial public offering was placed in a trust account, with approximately $146 million redeemed by stockholders[130]. Business Combination - The company entered into a Business Combination Agreement with SVES, with an aggregate consideration of $632,000,000 to be paid in common stock valued at $10.00 per share[118]. - The company intends to use substantially all funds held in the trust account to complete its initial business combination[132]. - The company may need to obtain additional financing to complete its business combination or due to significant public share redemptions[134]. - The company has determined that if it cannot complete a business combination within the Combination Period, it will cease operations and redeem public shares[135]. Compliance and Risks - The company had a hearing before the Nasdaq Hearings Panel on March 2, 2023, to appeal a delisting determination due to non-compliance with Nasdaq listing requirements[120]. - Various factors such as economic downturns, inflation, and geopolitical instability may adversely affect the company's results of operations[151]. Accounting Standards - The adoption of ASU 2020-06 effective April 13, 2021, did not have an impact on the financial statements[147].
Relativity Acquisition (RACY) - 2023 Q1 - Quarterly Report