Financial Performance - Net income for the three months ended March 31, 2023, was $763,803, a turnaround from a net loss of $184,444 for the same period in 2022 [19]. - Unrealized gain on marketable securities held in the trust account was $1,059,514 for the three months ended March 31, 2023, compared to a loss of $61,923 in the prior year [19]. - The company reported a loss from operations of $253,083 for the three months ended March 31, 2023, compared to a loss of $122,521 for the same period in 2022 [19]. - Net cash used in operating activities was $(284,832), an improvement from $(319,921) in the prior period [25]. - Income taxes accrued for the three months ended March 31, 2023, amounted to $208,439, compared to $165,799 for December 31, 2022 [59]. Assets and Liabilities - Total current assets increased to $309,532 as of March 31, 2023, compared to $134,534 as of December 31, 2022, reflecting a significant growth [17]. - Total liabilities increased to $4,796,981 as of March 31, 2023, from $4,614,090 as of December 31, 2022 [17]. - Cash and marketable securities held in the trust account amounted to $106,713,361 as of March 31, 2023, slightly up from $105,941,664 as of December 31, 2022 [17]. - The Company reported a working capital deficit of $864,949 as of March 31, 2023, contrasting with a working capital surplus of $758,420 as of December 31, 2022 [45]. - The Company had cash of $195,987 as of March 31, 2023, compared to $52,989 as of December 31, 2022, indicating a significant increase in cash reserves [45]. Shareholder Information - The weighted average shares outstanding increased to 3,079,525 for the three months ended March 31, 2023, compared to 2,705,131 for the same period in 2022 [19]. - The Company has 10,350,000 shares subject to possible redemption at a redemption value of $10.31 per share as of March 31, 2023 [17]. - Stockholders holding 5,289,280 shares redeemed their shares for cash at approximately $10.33 per share, resulting in $54,675,740 removed from the Trust Account [40]. - The Company is authorized to issue 100,000,000 shares of Class A common stock, with 492,025 shares issued and outstanding as of March 31, 2023 [76]. - The Class B common stock will convert into Class A common stock on a one-for-one basis at the time of a Business Combination [78]. Business Operations and Future Plans - The Company has not commenced any operations and will not generate operating revenues until after completing its initial Business Combination [28]. - The Company has extended the deadline to complete its initial Business Combination from March 29, 2023, to December 29, 2023 [40]. - The Company plans to consummate a Business Combination prior to the mandatory liquidation date due to liquidity concerns [45]. - The Merger Agreement includes a total Merger Consideration of $550,000,000, subject to adjustments for Closing Net Indebtedness [44]. - The Company has a Promissory Note allowing it to borrow up to $300,000, with no amounts outstanding as of March 31, 2023 [69]. Financial Transactions - The Company generated gross proceeds of $90,000,000 from its Initial Public Offering, with an additional $13,500,000 from the underwriter's over-allotment option [29]. - The Company sold 9,000,000 Units at a price of $10.00 per Unit during the Initial Public Offering, generating $90,000,000 in gross proceeds [64]. - The Sponsor purchased 466,150 Private Placement Units at a price of $10.00 per Unit, generating $4,661,500 in private placements [66]. - Deferred underwriting fees payable amount to $3,622,500, contingent upon the consummation of a Business Combination [31]. - The underwriters received a cash underwriting discount of $1,811,250 upon the closing of the Proposed Public Offering [74]. Risk Factors - The Company is subject to risks associated with being an early-stage and emerging growth company [27]. - The Company has no exposure to market or interest rate risk as of March 31, 2023, with net proceeds invested in U.S. government securities [89]. - The Company has not experienced losses on its cash account, which may exceed the Federal Depository Insurance Coverage of $250,000 [60]. Related Party Transactions - Related parties advanced $1,000 for working capital, with a total of $67,198 paid on behalf of the Company since inception [70]. - The Company has agreed to pay the Sponsor $10,000 per month for administrative services for up to 21 months [71]. - As of March 31, 2023, there were $140,000 outstanding under Working Capital Loans, with the potential for conversion into units at $10.00 per unit upon a Business Combination [72].
Arogo Capital Acquisition (AOGO) - 2023 Q1 - Quarterly Report