APx Acquisition I(APXI) - 2023 Q2 - Quarterly Report

Financial Performance - As of June 30, 2023, the Company reported a net income of $232,706, with operating costs of$1,362,299 and interest income of $2,566,535 from investments[128]. - The Company had a working capital deficit of$3,027,714 as of June 30, 2023, with only $91,852 in its operating bank account[129]. - The Company calculates net income per ordinary share by dividing net income by the weighted average shares outstanding for the respective period[143]. IPO and Capital Management - The Company raised gross proceeds of$172.5 million from the IPO by selling 17,250,000 units at a price of $10.00 per unit[118]. - The Company placed$175.95 million from IPO proceeds into a Trust Account, which will be invested in U.S. government securities[120]. - Following a shareholder vote, approximately $111.35 million was redeemed by holders of 10,693,417 public shares[122]. - The underwriters waived their right to a deferred fee of$6.04 million, resulting in a gain from settlement of deferred underwriting commissions[121][136]. Business Combination and Strategy - The Company has not yet identified a specific business combination target but intends to focus on companies serving Spanish-speaking markets[117]. - The Company engaged Prodi Capital as a structuring agent for a potential business combination, with customary fees due upon finalization of advisory services[137]. - The Company has until September 9, 2023, to consummate a business combination, or face mandatory liquidation[132]. - The Company issued a first promissory note of $875,000 and a second promissory note of$750,000 to facilitate extensions for business combination deadlines[124][125]. Compliance and Accounting - The Company prepares its financial statements in accordance with U.S. GAAP, requiring estimates and judgments that affect reported amounts of assets, liabilities, revenues, and expenses[138]. - The Company accounts for warrants based on specific terms and applicable guidance, assessing whether they meet liability or equity classification criteria[140]. - Issued or modified warrants that do not meet equity classification criteria are recorded at their initial fair value, with changes recognized as non-cash gains or losses[141]. - Ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value outside of shareholders' equity[142]. - As of June 30, 2023, the Company did not have any off-balance sheet arrangements or commitments[144]. - The Company is currently assessing the impact of ASU 2020-06 on its financial position, results of operations, or cash flows, effective for fiscal years beginning after December 15, 2023[145]. - The Company expects to incur increased expenses due to being a public company, particularly for legal and compliance costs[127]. - The Company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[149].