Financial Performance - For the three months ended June 30, 2022, the company reported a net income of $3,995,970, primarily due to a change in fair value of warrant liabilities of $4,007,225[114]. - For the six months ended June 30, 2022, the company achieved a net income of $6,484,332, with a significant contribution from a change in fair value of warrant liabilities amounting to $6,899,725[115]. - The company incurred net cash used in operating activities of $375,235 for the six months ended June 30, 2022[120]. 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[117]. - Transaction costs associated with the IPO amounted to $21,140,059, with $19,774,814 recorded to additional paid-in capital[119]. - The Company has two classes of ordinary shares: Class A and Class B, with income and losses shared pro rata between them[134]. - As of June 30, 2022, the Company had no dilutive securities or contracts that could potentially be exercised or converted into ordinary shares[134]. Financial Position and Assets - As of June 30, 2022, the company held marketable securities in the trust account totaling $234,944,360, which included approximately $344,360 of interest income[121]. - The company had cash of $355,242 held outside the trust account as of June 30, 2022, intended for operational expenses and due diligence activities[122]. - The company has no long-term debt obligations or off-balance sheet financing arrangements as of June 30, 2022[125]. Business Combination and Future Plans - The company expects to incur significant costs related to identifying a target business and conducting due diligence prior to the initial business combination[123]. - The company has until January 29, 2023, to consummate a business combination, after which a mandatory liquidation may occur if not completed[124]. Accounting Standards and Regulations - The FASB issued ASU 2020-06, effective for fiscal years beginning after December 15, 2023, which simplifies accounting for convertible instruments and diluted earnings per share calculations[135]. - ASU 2022-03, effective for fiscal years beginning after December 15, 2023, clarifies that contractual sales restrictions are not considered in measuring equity securities at fair value[136]. - The Company is currently assessing the impact of ASU 2020-06 and ASU 2022-03 on its financial position, results of operations, or cash flows[135][136]. - Management does not believe that any other recently issued accounting standards would have a material effect on the Company's financial statements[137]. - The Company is classified as a smaller reporting company under Rule 12b-2, thus not required to provide certain market risk disclosures[138].
TKB Critical Technologies 1(USCT) - 2022 Q2 - Quarterly Report