Financial Performance - For the three months ended March 31, 2024, the company reported a net loss of $3,902,244, which includes a change in fair value of warrant liabilities of $2,077,000 and operating costs of $2,408,551, offset by interest income of $583,307 [66]. - The company incurred a cash underwriting discount of $4,600,000 and a deferred fee of $8,050,000, which will be payable only upon completion of a Business Combination [72]. - The company has neither engaged in operations nor generated revenues to date, with activities focused on organizational tasks and identifying a target company for a Business Combination [357]. Cash and Liquidity - As of March 31, 2024, the company had cash of $35,147, which will be used for identifying and evaluating target businesses and performing due diligence [69]. - As of March 31, 2024, the company had cash held in the Trust Account of $46,889,042, including $3,480,568 of interest income [360]. - The company does not have sufficient liquidity to fund its working capital needs through January 7, 2025, raising substantial doubt about its ability to continue as a going concern [362]. Business Operations and Strategy - The company intends to use funds held outside the Trust Account for business due diligence and related expenses [69]. - The company completed the sale of 23,000,000 units at a price of $10.00 per unit, generating gross proceeds of $230,000,000 [359]. - The company has until January 7, 2025, to consummate a Business Combination, or it may face mandatory liquidation [362]. Debt and Financing - The company issued the Extension Note to its sponsor, agreeing to loan up to $360,000, with monthly deposits of $40,000 into the Trust Account until January 7, 2025 [65]. - The Second Promissory Note was amended to increase the principal sum from up to $300,000 to up to $1,250,000, with amounts borrowed after December 31, 2023 totaling $363,500 [356]. - Up to $2,000,000 of Working Capital Loans may be convertible into warrants at a price of $1.00 per warrant [361]. Market and Compliance Issues - The company received a Nasdaq Delisting Notice for not regaining compliance with the Minimum Total Holders Rule, with a hearing scheduled for May 23, 2024 [343]. - The company’s financial position may be adversely affected by economic uncertainties, including inflation, interest rate increases, and geopolitical instability [358]. - Approximately $21.87 million (approximately $11.13 per share) was removed from the Trust Account due to shareholders redeeming 1,964,993 Class A ordinary shares [65]. Underwriting and Options - The underwriter was granted a 45-day option to purchase up to 3,000,000 additional Units to cover over-allotments, which was fully exercised as of January 7, 2022 [363].
Cartica Acquisition p(CITE) - 2024 Q1 - Quarterly Report