Financial Performance - For the three months ended March 31, 2022, the company reported a net income of $2,488,362, primarily due to a change in fair value of warrant liabilities of $2,892,500 [108]. - The company has not generated any operating revenues to date and relies on non-operating income from interest on cash and cash equivalents [107]. IPO and Capital Structure - The company completed its IPO on October 29, 2021, raising gross proceeds of $230,000,000 from the sale of 23,000,000 units at $10.00 per unit [110]. - The company incurred transaction costs of $21,140,059 related to the IPO, with $19,774,814 recorded to additional paid-in capital [112]. - The underwriters of the IPO are entitled to a deferred fee of $8,800,000, payable only if the company completes its initial business combination [120]. Assets and Securities - As of March 31, 2022, the company had marketable securities held in the trust account amounting to $234,627,566, including approximately $27,566 of interest income [114]. - The company has no long-term debt obligations or off-balance sheet financing arrangements as of March 31, 2022 [118]. Business Strategy and Future Funding - The company intends to focus on identifying businesses that provide critical technologies in sectors such as advanced manufacturing and artificial intelligence [104]. - The company may need to raise additional funds to meet expenditures required for operating its business prior to the initial business combination [116]. - The company has an agreement to pay its sponsor a monthly fee of $10,000 for office space and administrative support until the completion of the business combination [119]. Accounting Standards and Compliance - The FASB issued ASU No. 2020-06, effective for fiscal years beginning after December 15, 2023, simplifying accounting for convertible instruments and diluted earnings per share calculations [128]. - The Company is currently assessing the impact of ASU 2020-06 on its financial position, results of operations, or cash flows [128]. - Management does not believe that any other recently issued accounting standards will have a material effect on the Company's financial statements [129]. - The Company qualifies as a smaller reporting company under Rule 12b-2, thus not required to provide certain market risk disclosures [130].
TKB Critical Technologies 1(USCT) - 2022 Q1 - Quarterly Report