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Yotta Acquisition Corporation(YOTAU) - 2023 Q1 - Quarterly Report
YOTAUYotta Acquisition Corporation(YOTAU)2023-05-23 20:05

IPO and Capital Raising - The Company completed its IPO on April 22, 2022, raising gross proceeds of 100millionfromthesaleof10millionunitsat100 million from the sale of 10 million units at 10.00 per unit[142]. Financial Performance - For the three months ended March 31, 2023, the Company reported a net income of 71,378,despiteincurringgeneralandadministrativeexpensesof71,378, despite incurring general and administrative expenses of 886,227[140]. - The Company has a working capital deficit of 2,028,347asofMarch31,2023,excludingincometaxandfranchisetaxpayable[146].MarketableSecuritiesandTrustAccount−AsofMarch31,2023,theCompanyhadmarketablesecuritiesheldintheTrustAccountamountingto2,028,347 as of March 31, 2023, excluding income tax and franchise tax payable[146]. Marketable Securities and Trust Account - As of March 31, 2023, the Company had marketable securities held in the Trust Account amounting to 118,558,173, with interest income used to pay taxes[145]. - A total of 7,414,905 shares were tendered for redemption during a special meeting, resulting in approximately 76.32millionwithdrawnfromtheTrustAccount[135].BusinessCombinationPlans−TheproposedbusinesscombinationwithNaturalShrimpisexpectedtocloseinthesecondquarterof2023,pendingcustomaryclosingconditions[132].−TheCompanyplanstoissue17.5millionsharesofcommonstocktoformersecurityholdersofNaturalShrimpupontheclosingofthemerger[130].−TheCompanyhasincurredsignificantcostsinpursuingacquisitionplansandcannotassurethesuccessofcompletingabusinesscombination[129].−TheCompanyissuedunsecuredpromissorynotestotaling76.32 million withdrawn from the Trust Account[135]. Business Combination Plans - The proposed business combination with NaturalShrimp is expected to close in the second quarter of 2023, pending customary closing conditions[132]. - The Company plans to issue 17.5 million shares of common stock to former security holders of NaturalShrimp upon the closing of the merger[130]. - The Company has incurred significant costs in pursuing acquisition plans and cannot assure the success of completing a business combination[129]. - The Company issued unsecured promissory notes totaling 1,025,000 to extend the time for completing the business combination[133][136][137]. - If a business combination is not completed by April 22, 2024, the Company will face mandatory liquidation and dissolution[147]. Equity and Financial Reporting - Common stock subject to possible redemption is classified as temporary equity and presented at redemption value, affecting the carrying value adjustments at the end of each reporting period[154]. - Warrants are assessed for equity or liability classification based on specific terms, with those qualifying for equity recorded as additional paid-in capital at issuance[156]. - Net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding, with redeemable and non-redeemable shares presented as one class[158]. - Offering costs related to the IPO are charged to stockholders' equity upon completion, allocated between public shares and public rights based on relative fair values[159]. Accounting Standards and Management Assessment - The company is assessing the impact of ASU 2020-06, effective for smaller reporting companies after December 15, 2023, which simplifies accounting for certain financial instruments[160]. - Management believes that no other recently issued accounting pronouncements will have a material effect on the financial statements[161].