Financial Performance - As of March 31, 2023, the company reported a net income of $1,285,224, primarily due to interest income of $3,319,794 on marketable securities held in the trust account [112]. - The company has not generated any operating revenues since its inception on April 6, 2021, and does not expect to do so until after completing its initial Business Combination [111]. - The company incurred cash used in operating activities of $161,277 for the three months ended March 31, 2023, compared to $1,212,077 for the same period in 2022 [117]. Marketable Securities - The company had marketable securities held in the trust account amounting to $313,808,592, consisting of U.S. Treasury Bills with a maturity of 180 days or less [117]. - The company completed its Initial Public Offering on November 9, 2021, raising gross proceeds of $275,000,000 from the sale of 27,500,000 Units [114]. Business Combination and Financing - The company has a Working Capital Loan agreement with the Sponsor for up to $1,500,000, which may be converted into warrants at a price of $1.00 per warrant [121]. - The company has incurred significant costs in pursuit of its acquisition plans and has less than 12 months to complete a Business Combination, raising concerns about its ability to continue as a going concern [122]. - The company has a deferred underwriting commission of $10,500,000, which will be waived if the initial Business Combination is not completed [125]. - The company entered into a Forward Purchase Agreement to purchase up to 5,000,000 Units at $11.50 per share, subject to customary closing conditions [126]. 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 on the statements of operations [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]. - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions [139]. - The Company has elected not to opt out of the extended transition period for new accounting standards, which may complicate financial statement comparisons with other public companies [140]. - Management does not anticipate that recently issued accounting standards will have a material effect on the Company's financial statements [138]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [141].
Rigel Resource Acquisition (RRAC) - 2023 Q1 - Quarterly Report