APx Acquisition I(APXI) - 2023 Q3 - Quarterly Report

IPO and Proceeds - The company raised gross proceeds of $172.5 million from the IPO by selling 17,250,000 units at$10.00 per unit, including 2,250,000 units from the underwriters' over-allotment option[130]. - Following the IPO, $175.95 million from the net proceeds was placed in a trust account, which will be invested in U.S. government securities[131]. - The company incurred a gain of approximately$6.04 million from the settlement of deferred underwriting commissions after the underwriters waived their right to receive the deferred fee[133]. - The underwriters from the Initial Public Offering waived their right to deferred underwriting commissions amounting to $6,037,500, which was recorded as a gain on settlement of underwriter fees[157]. Financial Position - As of September 30, 2023, the company had$63.34 million remaining in the trust account after redemptions, with 5,799,120 public shares outstanding[140]. - As of September 30, 2023, the company had $9,369 in its operating bank account and a working capital deficit of$167,889[150]. - Management believes that the company may not have sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a Business Combination or one year from the filing date[152]. Business Combination Plans - The company plans to extend the termination date for business combinations up to twelve times for an additional one month each time, with a deposit of 125,000 required for each extension[144]. - The company has not selected any specific business combination target and intends to focus on companies providing goods and services to Spanish-speaking markets[129]. - The company has entered into an engagement letter with EarlyBirdCapital, Inc. for M&A advisory services, with a transaction fee of 2 million payable upon closing a business combination[134]. - The company has until December 9, 2024, to consummate a Business Combination, or it will face mandatory liquidation and potential dissolution[153]. Revenue and Expenses - The company has not generated any operating revenues since inception and expects to incur increased expenses related to being a public company[146]. - For the three months ended September 30, 2023, the company reported a net income of $3,882,035, with operating costs of$188,108 and interest expense of $24,442[147]. - For the nine months ended September 30, 2023, the company had a net income of$4,114,741, with operating costs of $1,550,407 and interest expense of$82,345[149]. - The company expects to generate small amounts of non-operating income from interest on cash and investments[146]. Debt and Financing - The company issued a total of $1.625 million in promissory notes to facilitate extensions of the termination date for business combinations, which were paid in full on August 18, 2023[139]. - The company issued an unsecured promissory note of up to$500,000 to finance transaction costs related to a Business Combination, with an outstanding principal balance of $125,000 as of September 30, 2023[151]. Administrative and Compliance Matters - The company ended the administrative services agreement as of the end of September 2023, ceasing to pay monthly fees of up to$10,000[154]. - The company has not identified any off-balance sheet arrangements as of September 30, 2023[166]. - The company is currently assessing the impact of the new accounting standards effective after December 15, 2023, on its financial position and results of operations[167].