Financial Performance - The company reported a net income of $224,952 for the three months ended February 29, 2024, compared to a net income of $983,179 for the same period in 2023[157][158]. - Interest income on marketable securities held in the Trust Account was $409,070 for the three months ended February 29, 2024, down from $1,249,613 in the prior year[157][158]. - The company has not generated any operating revenues to date and does not expect to do so until after the completion of its Business Combination[156]. Initial Public Offering (IPO) - The company raised gross proceeds of $115,000,000 from the Initial Public Offering of 11,500,000 Units at $10.00 per Unit, including the full exercise of the over-allotment option[159]. - A total of $117,300,000 was placed in the Trust Account following the Initial Public Offering and the sale of Private Placement Warrants[160]. - The company incurred $5,724,785 in Initial Public Offering related costs, including $1,150,000 in underwriting fees[160]. - The underwriters are entitled to a deferred underwriting discount of 3.5% of the gross proceeds of the IPO, totaling $4,025,000, upon completion of the initial Business Combination[170]. Business Combination Plans - Shareholders approved a proposal allowing the company to extend the deadline for completing its initial business combination to March 18, 2024, with a total of $400,000 deposited into the Trust Account[139]. - The company plans to issue 9,200,000 Class A Ordinary Shares to Allrites shareholders as part of the Business Combination, valued at $92,000,000[144]. - If Allrites' recurring revenue exceeds $12,000,000 and $20,000,000 in the first and second Earnout Periods, respectively, the company will issue additional shares valued at $8,000,000 and $10,000,000[146]. Financial Position and Liquidity - As of February 29, 2024, the Trust Account holds marketable securities totaling $31,156,815, including $2,281,515 in interest income[163]. - The company has cash of $131,593 available outside the Trust Account for evaluating target businesses and related expenses[164]. - Up to $1,500,000 in Working Capital Loans may be convertible into warrants at a price of $1.00 per warrant at the lender's option[165]. - If additional financing is required to complete a Business Combination, the company may issue additional securities or incur debt[166]. - The company faces substantial doubt about its ability to continue as a going concern if it cannot raise additional funds or complete a Business Combination by July 18, 2023[167]. Accounting and Compliance - There are no off-balance sheet arrangements or obligations as of February 29, 2024[168]. - The company has no long-term debt or capital lease obligations, only a monthly payment of $20,000 to an affiliate for office-related services[169]. - Management has not identified any critical accounting policies that could materially affect the financial statements[172]. - Recent accounting pronouncements are not expected to have a material effect on the company's financial statements[173].
Aura FAT Projects Acquisition p(AFAR) - 2024 Q1 - Quarterly Report