Distoken Acquisition (DIST) - 2023 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2023, the company reported a net income of $391,367, consisting of interest income of$914,783 and an unrealized gain of $26,564, offset by operating costs of$428,379 and Chinese income tax of $121,601 [127]. - For the nine months ended September 30, 2023, the company had a net income of$1,080,034, with interest income of $2,143,508 and an unrealized gain of$16,128, offset by operating costs of $724,967 and Chinese income tax of$354,635 [127]. - Cash used in operating activities for the nine months ended September 30, 2023, was $637,824, with net income of$1,080,034 affected by interest earned on marketable securities [130]. - Net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of ordinary shares outstanding, with no dilutive securities affecting the calculation as of September 30, 2023 [150]. Cash and Securities - As of September 30, 2023, the company had cash and marketable securities in the Trust Account totaling $72,539,636, including$2,159,636 of interest income and unrealized gains [131]. - The company intends to use substantially all funds in the Trust Account to complete its Business Combination and may withdraw interest to pay taxes [131]. Initial Public Offering - The company completed its initial public offering on February 17, 2023, raising gross proceeds of $69,000,000 from 6,900,000 units sold at$10.00 per unit [129]. - The company incurred transaction costs of $4,366,343 related to the initial public offering, which included a cash underwriting discount of$2,070,000 [129]. - The company has engaged I-Bankers to assist in potential Business Combinations, agreeing to pay a cash fee of 4.0% of the gross proceeds of the initial public offering, totaling $2,760,000 [145]. Business Combination - The company has extended the deadline to complete a Business Combination to November 18, 2024, with shareholders approving the New Extension [137]. - The company recognizes changes in the redemption value of public shares immediately and adjusts the carrying value to equal the redemption value at the end of each reporting period [149]. Debt and Accounting Standards - The company has no long-term debt or off-balance sheet arrangements as of September 30, 2023 [142]. - Management does not anticipate that any recently issued accounting standards will have a material effect on the unaudited condensed financial statements [151]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [152]. Share Structure - The weighted average shares were reduced by 258,000 ordinary shares subject to forfeiture if the over-allotment option was not exercised [150].