Financial Position - As of March 31, 2023, the company had cash and marketable securities in the Trust Account totaling 70,789,924,includingapproximately409,924 of interest income and unrealized gains [125]. - As of March 31, 2023, the company had cash of 827,272availableforidentifyingandevaluatingtargetbusinesses[126].−Thecompanyhasnolong−termdebtorcapitalleaseobligations,butincursamonthlyfeeof10,000 to its Sponsor for office space and administrative services [134]. Income and Expenses - For the three months ended March 31, 2023, the company reported a net income of 251,313,drivenbyinterestincomeof354,063 and an unrealized gain of 55,861onmarketablesecurities[122].−OperatingcostsforthethreemonthsendedMarch31,2023amountedto93,460, with an additional Chinese income tax expense of 65,151[122].−CashusedinoperatingactivitiesforthethreemonthsendedMarch31,2023was159,853, compared to 1,850forthesameperiodin2022[124].−ThecompanyhasnotgeneratedanyoperatingrevenuestodateanddoesnotexpecttodosountilaftercompletingaBusinessCombination[121].BusinessCombination−ThecompanycompleteditsinitialpublicofferingonFebruary17,2023,raisinggrossproceedsof69,000,000 from the sale of 6,900,000 units at 10.00perunit[123].−ThecompanymayextendtheperiodtoconsummateaBusinessCombinationbyuptothreetimes,eachbyanadditionalthreemonths,requiringadepositof690,000 for each extension [128]. - The company has engaged I-Bankers as an advisor for its initial Business Combination, agreeing to pay a cash fee of 4.0% of the gross proceeds of the initial public offering, totaling $2,760,000 [135]. Internal Control and Compliance - The company identified material weaknesses in its internal control over financial reporting as of March 31, 2023, affecting the effectiveness of disclosure controls and procedures [146]. - The material weaknesses relate to ineffective review controls over the financial statement preparation process, including the valuation of complex financial instruments and recording of accrued expenses [146]. - Management has concluded that the current disclosure controls and procedures were not effective due to identified weaknesses [146]. - The remediation plan for the identified weaknesses will take time and there is no assurance of its ultimate effectiveness [147]. - The design of disclosure controls must consider resource constraints and the balance of benefits relative to costs [148]. - There are no changes in internal control over financial reporting during the fiscal quarter that materially affected the internal control [149]. - The company does not expect its disclosure controls and procedures to prevent all errors and instances of fraud, providing only reasonable assurance [148]. Legal Matters - There is no pending or contemplated litigation against the company or its officers and directors [151].
