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Ace Business Acquisition (ACBA) - 2023 Q1 - Quarterly Report
ACBAAce Business Acquisition (ACBA)2023-05-18 15:51

Financial Performance - As of March 31, 2023, the company reported a net loss of 315,433,comparedtoanetlossof315,433, compared to a net loss of 309,109 for the same period in 2022[73]. - The total net loss including accretion of carrying value to redemption value was 1,294,111forthethreemonthsendedMarch31,2023,comparedto1,294,111 for the three months ended March 31, 2023, compared to 316,764 for the same period in 2022[73]. - The basic and diluted net loss per share for the three months ended March 31, 2023, was 0.07,whileforthesameperiodin2022,itwas0.07, while for the same period in 2022, it was (0.33)[74]. Shareholder Information - As of March 31, 2023, the company had 2,335,547 ordinary shares subject to possible redemption, down from 4,600,000 as of December 31, 2022[59]. - The company issued 1,454,000 ordinary shares as of March 31, 2023, excluding 2,335,547 shares subject to possible redemption[90]. - The company has 4,600,000 public warrants outstanding as of March 31, 2023, each entitling the holder to purchase one ordinary share at an exercise price of 11.50[90].FinancialPosition−ThecompanydidnothaveanycashequivalentsasofMarch31,2023,andDecember31,2022[54].−ThecompanyrecognizedzeroincometaxprovisionfortheperiodsendedMarch31,2023,and2022[69].−ThefairvalueofcertainfinancialinstrumentsapproximatesthecarryingamountsrepresentedinthebalancesheetasofMarch31,2023[63].−Thecompanyhasnotexperiencedlossesonitscashaccountandbelievesitisnotexposedtosignificantcreditrisk[64].−ThecompanyhasnotrecognizedanyunrecognizedtaxbenefitsoraccruedamountsforinterestandpenaltiesasofMarch31,2023[68].BusinessCombinationandObligations−Thecompanyisobligatedtopayamonthlyfeeof11.50[90]. Financial Position - The company did not have any cash equivalents as of March 31, 2023, and December 31, 2022[54]. - The company recognized zero income tax provision for the periods ended March 31, 2023, and 2022[69]. - The fair value of certain financial instruments approximates the carrying amounts represented in the balance sheet as of March 31, 2023[63]. - The company has not experienced losses on its cash account and believes it is not exposed to significant credit risk[64]. - The company has not recognized any unrecognized tax benefits or accrued amounts for interest and penalties as of March 31, 2023[68]. Business Combination and Obligations - The company is obligated to pay a monthly fee of 10,000 for administrative services starting from April 1, 2021, until the completion of the Business Combination[85]. - The company has the option to extend the time to consummate a Business Combination up to 30 months, with specific conditions for extensions[86]. - The company issued unsecured promissory notes totaling 2,066,865asofMarch31,2023,toextendthetimeavailableforcompletingaBusinessCombination[87].InitialPublicOffering(IPO)−Thecompanysold4,600,000PublicUnitsatapriceof2,066,865 as of March 31, 2023, to extend the time available for completing a Business Combination[87]. Initial Public Offering (IPO) - The company sold 4,600,000 Public Units at a price of 10.00 per unit during its Initial Public Offering, raising a total of 46million[79].−Thecompanyincurredanupfrontunderwritingdiscountof46 million[79]. - The company incurred an upfront underwriting discount of 920,000, which is 2% of the gross offering proceeds, with an additional deferred underwriting discount of 1,840,000,or41,840,000, or 4% of the gross offering proceeds, payable upon completion of the Business Combination[80]. - The underwriters are entitled to a deferred fee of 4.0% of the gross proceeds of the Initial Public Offering, amounting to 1,840,000[110]. Investment and Market Conditions - The company has invested the net proceeds from its Initial Public Offering in U.S. government treasury bills, notes, or bonds with a maturity of 180 days or less[112]. - The company has no material exposure to market or interest rate risk due to the short-term nature of its investments[112]. - The risk-free interest rate increased to 3.59% as of March 31, 2023, from 1.18% on December 31, 2022[105]. - The volatility of the company's shares decreased to 0.8% as of March 31, 2023, from 1% on December 31, 2022[105]. Fair Value Measurements - As of March 31, 2023, the aggregate value of Private Warrants was 14,352,adecreaseofapproximately14,352, a decrease of approximately 4,352 from December 31, 2022[105]. - The fair value of Private Warrants was initially established at 1,258,560onApril9,2021,usingaBlack−Scholesmodel[102].−ThechangeinfairvalueofPrivateWarrantsfromDecember31,2021,toMarch31,2022,wasapproximately1,258,560 on April 9, 2021, using a Black-Scholes model[102]. - The change in fair value of Private Warrants from December 31, 2021, to March 31, 2022, was approximately (80,000)[106]. COVID-19 Impact - The company is currently evaluating the impact of the COVID-19 pandemic on its future financial position and operations[108].