Financial Performance - As of June 30, 2022, the company reported a net income of $11,094,993, primarily due to a gain in fair value of derivative liabilities amounting to $11,256,287 [109]. - Cash used in operating activities for the six months ended June 30, 2022, was $1,327,247, with net income primarily resulting from interest income on marketable securities of $459,582 [117]. - The company anticipates generating non-operating income from interest on marketable securities held in the trust account, but does not expect to generate operating revenues until after completing its initial Business Combination [108]. Assets and Securities - The company had marketable securities held in the trust account totaling $306,463,238, consisting of U.S. Treasury Bills with a maturity of 180 days or less [116]. - As of June 30, 2022, the company had cash of $237,023 held outside the trust account, intended for identifying and evaluating target businesses [120]. - The company recognizes changes in the redemption value of its Class A ordinary shares, which amounted to approximately $306,463,000 as of June 30, 2022, classified as temporary equity [132]. Financing and Debt - The company entered into a Working Capital Loan agreement with the Sponsor for up to $1,500,000, which may be settled in warrants at a conversion price of $1.00 per warrant [123]. - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2022 [125]. Business Operations and Strategy - The company completed its Initial Public Offering on November 9, 2021, generating gross proceeds of $275,000,000 from the sale of 27,500,000 Units [113]. - The company has incurred significant costs in pursuit of its acquisition plans and has less than 12 months to complete a Business Combination [124]. Accounting and Reporting - The Company accounts for its convertible promissory note under ASC 815, recognizing changes in estimated fair value as non-cash gains or losses [135]. - Derivative instruments, including Public Warrants and Private Placement Warrants, are recorded at fair value and re-valued at each reporting date, with changes reported in the statements of operations [136]. - The Public Warrants and Private Placement Warrants are classified as liabilities and re-measured at fair value at each reporting period until exercised or expired [137]. - Share-based compensation is recognized at fair value on the grant date, with expenses included in general and administrative expenses in the statements of operations [138]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements [141]. - The Company has elected not to opt out of the extended transition period under the JOBS Act, allowing it to adopt new accounting standards when private companies do [142]. - The Company does not believe that recently issued accounting standards will have a material effect on its financial statements [140]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [143].
Rigel Resource Acquisition (RRAC) - 2022 Q2 - Quarterly Report