UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended September 30, ~~2021~~2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-40933

EXCELFIN ACQUISITION CORP.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

86-2933776

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

~~473 Jackson St., Suite 300~~100 Kingsley Park Dr

~~San Francisco~~Fort Mill, CASC ~~94111~~29715

(Address of principal executive offices)

(917~~415~~-) ~~715-4377~~209-8581

(Issuer’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units, each consisting of one share of Class A common stock and one-half of one redeemable warrant	XFINU	The Nasdaq Stock Market
Class A common stock, par value $0.0001 per share	XFIN	The Nasdaq Stock Market
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50	XFINW	The Nasdaq Stock Market

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧☒ No ◻☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ⌧☒ No ◻☐

As of ~~December 6, 2021,~~November 20, 2023 there were ~~23,000,000~~7,951,533 shares of Class A ~~common stock, $0.0001 par value, and 5,750,000 shares of Class B~~ common stock, $0.0001 par value, issued and outstanding.

Table of Contents

EXCELFIN ACQUISITION CORP.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, ~~2021~~2023

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Condensed Financial Statements	1

	Condensed Balance ~~Sheet~~Sheets as of September 30, ~~2021~~2023 (unaudited)	1

	~~Statements of Operations for the three months ended September 30, 2021~~ and ~~for the period from March 15, 2021 (inception) through September 30, 2021 (unaudited)~~	2

	~~Statement of Changes in Stockholder’s Equity for the period from March 15, 2021 (inception) through September 30, 2021 (unaudited)~~December 31, 2022 (audited)	3

	~~Statement~~Condensed Statements of ~~Cash Flows~~Operations for the ~~period from March 15, 2021 (inception) through~~three and nine months ended September 30, ~~2021~~2023 (unaudited) and September 30, 2022 (unaudited)	4

	Condensed Statements of Changes in Stockholders’ Deficit for the three and nine months ended September 30, 2023 (unaudited) and September 30, 2022 (unaudited)	5

	Condensed Statements of Cash Flows for the nine months ended September 30, 2023 (unaudited) and September 30, 2022 (unaudited)	6

	Condensed Notes to Unaudited Financial Statements	57

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1623

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	1831

Item 4.	Controls and Procedures	1831

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	2033

Item 1A.	Risk Factors	2033

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities	2033

Item 3.	Defaults Upon Senior Securities	2033

Item 4.	Mine Safety Disclosures	2033

Item 5.	Other Information	2033

Item 6.	Exhibits	2134

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

EXCELFIN ACQUISITION CORP.

CONDENSED BALANCE ~~SHEET~~

~~(Unaudited)~~SHEETS

September 30, 2021
ASSETS

Deferred offering costs

$
439,296
Total Assets

$
439,296

LIABILITIES AND STOCKHOLDER'S DEFICIT


Current Liabilities:

Accrued offering costs

$
285,000
Accrued formation costs

5,000
Advances from related party

54,446
Note payable– Sponsor

300,000
Total Current Liabilities

644,446


Commitments and contingencies (Note 6)



Stockholder’s Deficit:


Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding

—
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; NaN issued and outstanding

—
Class B common stock, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 shares issued and outstanding ⁽¹⁾

575
Additional paid-in capital

24,425
Accumulated deficit

(230,150)
Total Stockholder's Deficit

(205,150)
Total Liabilities and Stockholder’s Deficit

$
439,296

~~(1)Includes an aggregate of up to 750,000 shares of Class B common stock subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 5).~~


	September 30,		December 31,
	2023		2022
	(unaudited)		(audited)
ASSETS
Current Assets:
Cash	$	303,100	$	351,432
Prepaid expenses		93,134		457,974
Total Current Assets		396,234		809,406

Investments held in the Trust Account		51,478,893		237,735,165

Total Assets	$	51,875,127	$	238,544,571

LIABILITIES, COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable and accrued expenses	$	5,229,943	$	310,901
Excise tax payable		1,893,966		—
Income tax payable		304,352		620,346
Unrecognized tax benefit		114,684		—
Franchise tax payable		67,600		211,090
Accrued offering costs		400,907		415,907
Due to related parties		292,724		538,558
Working capital loan - Sponsor		1,296,654		300,000
Total Current Liabilities		9,600,830		2,396,802

Deferred underwriting compensation		1,610,000		8,050,000
Total liabilities		11,210,830		10,446,802

COMMITMENTS AND CONTINGENCIES (Note 6)

Class A common stock subject to possible redemption; 4,788,792 and 23,000,000 shares (at redemption value; $10.65 and $10.30 per share at September 30, 2023 and December 31, 2022, respectively)		50,989,057		236,903,730

Stockholders’ deficit:

Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
Class A Common Stock, $0.0001 par value, 200,000,000 shares authorized, none issued and outstanding of September 30, 2023 and December 31, 2022, respectively (excluding 4,788,792 and 23,000,000 shares subject to possible redemption as of September 30, 2023 and December 31, 2022, respectively)		—		—
Class B Common Stock, $0.0001 par value, 50,000,000 shares authorized, 5,750,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively		575		575
Additional paid-in capital		—		—
Accumulated deficit		(10,325,335)		(8,806,536)
Total Stockholders’ Deficit		(10,324,760)		(8,805,961)
Total Liabilities, Common Stock Subject to Possible Redemption and Stockholders’ Deficit	$	51,875,127	$	238,544,571

The accompanying notes are an integral part of ~~the~~these unaudited condensed financial statements.

Table of Contents

EXCELFIN ACQUISITION CORP.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

For the

Period From

March 15, 2021

For the

(Inception)

Three Months Ended

Through

September 30,

September 30,

2021

2021
Formation and operating costs

$
112,530

$
230,150

Net loss

$
(112,530)

$
(230,150)

Weighted average shares outstanding, basic and diluted ⁽¹⁾

5,000,000

5,000,000

Basic and diluted net loss per common share

$
(0.02)

$
(0.05)

~~(1)~~

~~Excludes an aggregate of up to 750,000 shares of Class B common stock subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 5).~~


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
EXPENSES
Financial services and administrative fee - related party	$	30,000	$	142,500	$	90,000	$	427,500
Franchise tax		50,000		50,411		151,622		152,790
General and administrative		2,152,010		280,296		5,974,833		788,966
TOTAL EXPENSES		2,232,010		473,207		6,216,455		1,369,256

OTHER INCOME
Income earned on Investments held in Trust Account		661,355		1,078,640		4,559,078		1,229,250
TOTAL OTHER INCOME		661,355		1,078,640		4,559,078		1,229,250

Net income (loss) before income taxes		(1,570,655)		605,433		(1,657,377)		(140,006)

Income tax provision		128,385		200,896		925,566		200,896

Net income (loss)	$	(1,699,040)	$	404,537	$	(2,582,943)	$	(340,902)

Weighted average number of shares of Class A common stock outstanding, basic and diluted		4,788,792		23,000,000		11,659,687		23,000,000
Basic and diluted net income (loss) per share of Class A common stock		(0.16)		0.01		(0.15)		(0.01)

Weighted average number of shares of Class B common stock outstanding, basic and diluted		5,750,000		5,750,000		5,750,000		5,750,000
Basic and diluted net income (loss) per share of Class B common stock		(0.16)		0.01		(0.15)		(0.01)

The accompanying notes are an integral part of ~~the~~these unaudited condensed financial statements.

Table of Contents

EXCELFIN ACQUISITION CORP.

~~STATEMENT~~CONDENSED STATEMENTS OF CHANGES IN ~~STOCKHOLDER’S EQUITY~~STOCKHOLDERS’ DEFICIT

(UNAUDITED)

FOR THE ~~PERIOD FROM MARCH 15, 2021 (INCEPTION) THROUGH~~ ~~September~~THREE AND NINE MONTHS ENDED SEPTEMBER 30, ~~2021~~

~~(UNAUDITED)~~2023

Class B

Additional

Common Stock

Paid-In

Accumulated

Stockholders’


Shares

Amount

Capital

Deficit


Deficit
Balance as of January 1, 2023

5,750,000

$
575

$
—

$
(8,806,536)

$
(8,805,961)
Current period remeasurement to redemption value

—

—

—

(1,952,348)

(1,952,348)
Net income (loss)

—

—

—

1,494,391

1,494,391
Balance as of March 31, 2023

5,750,000

$
575

$
—

$
(9,264,493)

$
(9,263,918)
Current period remeasurement to redemption value

—

—

—

(1,046,571)

(1,046,571)
Excise tax on Class A common stock redemption

—

—

—

(1,893,966)

(1,893,966)
Net income (loss)

—

—

—

(2,378,294)

(2,378,294)
Balance as of June 30, 2023

5,750,000

$
575

—

$
(14,583,324)

$
(14,582,749)
Current period remeasurement to redemption value

—

—

—

(482,971)

(482,971)
Gain on forfeiture of deferred underwriting compensation payable

—

—

—

6,440,000

6,440,000
Net income (loss)

—

—

—

(1,699,040)

(1,699,040)
Balance as of September 30, 2023

5,750,000

575

—

(10,325,335)

(10,324,760)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022

Class B

Additional

Total

Common Stock

Paid-in

Stockholder

Accumulated

Stockholder's


Shares

Amount

Capital

Receivable

Deficit


Deficit
Balance, March 15, 2021 (inception)

0

$
0

$
0

$
0

$
0

$
0

Issuance of Class B common stock to Sponsor(1)

5,750,000

575

24,425

(25,000)

—

—

Net loss

—

—

—

—

(5,000)

(5,000)

Balance, March 18, 2021

5,750,000

$
575

$
24,425

$
(25,000)

$
(5,000)

$
(5,000)

Payment of stockholder receivable

—

—

—

25,000

—

25,000

Net loss

—

—

—

—

(112,620)

(112,620)

Balance, June 30, 2021

5,750,000

$
575

$
24,425

$
—

$
(117,620)

$
(92,620)

Net loss

—

—

—

—

(112,530)

(112,530)

Balance, September 30, 2021

5,750,000

$
575

$
24,425

$
—

$
(230,150)

$
(205,150)
~~(2)~~
~~Includes an aggregate of up to 750,000 shares of Class B common stock subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 5).~~

Class B

Additional

Common Stock

Paid-In

Accumulated

Stockholders’


Shares

Amount

Capital

Deficit

Deficit
Balance as of December 31, 2021

5,750,000

$
575

$
—

$
(7,125,924)

$
(7,125,349)
Net income (loss)

—

—

—

(466,315)

(466,315)
Balance as of March 31, 2022

5,750,000

575

$
—

(7,592,239)

(7,591,664)
Net income (loss)

—

—

—

(279,124)

(279,124)
Balance as of June 30, 2022

5,750,000

$
575

$
—

$
(7,871,363)

$
(7,870,788)
Current period remeasurement to redemption value

—

—

—

(678,587)

(678,587)
Net income (loss)

—

—

—

404,537

404,537
Balance as of September 30, 2022

5,750,000

575

—

(8,145,413)

(8,144,838)

The accompanying notes are an integral part of ~~the~~these unaudited condensed financial statements.

Table of Contents

EXCELFIN ACQUISITION CORP.
~~STATEMENT~~CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

For the

Period From

March 15,

2021

(Inception)

Through

September 30,

2021
Cash flows from operating activities


Net loss

$
(230,150)
Adjustments to reconcile net loss to net cash used in operating activities:

Changes in accrued formation and offering costs

5,000
Net cash used in operating activities

(225,150)

Cash flows from financing activities

Proceeds from sponsor note

225,150
Net cash provided from financing activities

225,150

Net change in cash

0
Cash at beginning of period

0
Cash at end of period

$
0

Non-cash financing activities:

Deferred offering costs paid by stockholder receivable

$
25,000
Deferred offering costs paid by Sponsor under promissory note

$
74,850
Deferred offering costs included in accrued offering costs

$
285,000

For the

For the

Nine Months

Nine Months

Ended

Ended

September 30,

September 30,


2023

2022
Cash Flows from Operating Activities:



Net loss

$
(2,582,943)

$
(340,902)
Adjustments to reconcile net loss to net cash used in operating activities:

Investment income earned on treasury securities held in Trust Account

(4,559,078)

315,000
Changes in operating assets and liabilities:

Due to related parties

(245,834)

(1,229,250)
Prepaid expenses

364,840

427,340
Income tax payable

(86,626)

—
Tax uncertainties

(114,684)

—
Franchise tax payable

(143,490)

—
Accounts payable and accrued expenses

4,919,042

263,488
Net Cash Used In Operating Activities

(2,448,773)

(564,324)

Cash Flows From Investing Activities:

Withdrawal of trust account funds for taxes

1,418,787

—
Withdrawal of trust funds in relation to redemptions of Class A common stock

189,396,563

—
Net Cash Provided by Investing Activities

190,815,350

—

Cash Flows From Financing Activities:

Proceeds from Working Capital Loan

996,654

—
Payments of offering costs

(15,000)

—
Payments made in relation to redemptions of Class A common stock

(189,396,563)

—
Net Cash Used in Financing Activities

(188,414,909)

—
Net change in cash

(48,332)

(564,324)
Cash at beginning of period

351,432

896,517
Cash at end of year period

$
303,100

$
332,193

Supplemental disclosure of cash flow information:

Cash paid for income taxes

$
1,210,898

$
—

Non-cash financing activities:

Excise tax on Class A common stock redemption

$
1,893,966

$
—
Current period remeasurement to redemption value

$
3,481,890

$
678,587
Gain on forfeiture of deferred underwriting compensation payable

$
6,440,000

$
—

The accompanying notes are an integral part of ~~the~~these unaudited Condensed financial statements.

Table of Contents

~~EXCELFIN ACQUISITION CORP.~~ExcelFin Acquisition Corp.

Notes to Unaudited Condensed Financial Statements
NOTE 1.1 — DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS AND LIQUIDITY
~~Excelfin~~ExcelFin Acquisition Corp. (the “Company”) was incorporated in Delaware on March 15, 2021. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with 1one or more businesses (the ~~"Business Combination"~~“Business Combination”).
The Company is not limited to a particular industry or sector for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of September 30, ~~2021,~~2023, the Company had not commenced any operations. All activity for the period from March 15, 2021 (inception) through September 30, ~~2021~~2023 relates to the Company’s formation and ~~the~~ initial public offering (“Initial Public Offering”), which is described below. The Company will not generate any operating revenues until after the completion of anits initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.
The registration statement for the Company’s Initial Public Offering was declared effective on October ~~20,~~21, 2021. On October 25, 2021, the Company consummated the Initial Public Offering of 20,000,000 units (“Units” and, with respect to the common stock included in the Units being offered, the “Public Shares”), generating gross proceeds of $200,000,000, which is described in Note 3.
Simultaneously with the closing of the Initial Public Offering, the Company consummated the private sale (the “Private Placement”) of an aggregate of 11,700,000 warrants (the “Private Placement Warrants”) to ExcelFin SPAC LLC (the “Sponsor”) at a purchase price of $1.00 per Private Placement Warrant, ~~in private placements to ExcelFin SPAC LLC (the “Sponsor”),~~ generating gross proceeds to the Company in the amount of $11,700,000.
On October 25, 2021, the underwriters purchased an additional 3,000,000 Option Units pursuant to the full exercise of the over-allotment option. The Option Units were sold at an offering price of $10.00 per Unit, generating additional gross proceeds to the Company of $30,000,000.
As of October 25, 2021, transaction costs amounted to $22,726,465 consisting of $4,600,000 of underwriting fees paid in cash, $8,050,000 of deferred underwriting fees payable (which are held in a trust account with U S Bank acting as trustee (the “Trust Account”)), $9,200,000 funded to the trust account and $876,465 of costs related to the Initial Public Offering. Cash of $351,432 was held outside of the Trust Account on December 31, 2022 and was available for working capital purposes. As described in Note 6, the $8,050,000 deferred underwriting fees are contingent upon the consummation of the Business Combination. The Company entered into fee waiver agreements with KeyBanc Capital Markets Inc. and UBS Securities LLC on August 7, 2023 and August 11, 2023, respectively. Eighty percent (80%), or $6,440,000 in the aggregate, of the deferred underwriting fees have been waived, leaving $1,610,000 of deferred underwriting fees payable to EXOS Securities LLC upon closing pursuant to the Business Combination Agreement. The Company recorded a reduction of $6,440,000 of deferred underwriting fees payable and a gain on forfeiture of deferred underwriting compensation payable in the period ending September 30, 2023. Although the UBS Securities LLC waiver of $6,037,500 relates only to the business combination that may be consummated pursuant to the Business Combination Agreement with Baird Medical, the Company believes that there is only a remote possibility that the Company could consummate another business combination if the Business Combination Agreement with Baird Medical were to be terminated for any reason.
Following the closing of the Initial Public Offering on October 25, 2021, an amount of $234,600,000 ($10.20 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the Private Placement was placed in a trust account (“Trust Account”) which may be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the Trust Account, as described below.

~~While~~7

Table of Contents

On April 13, 2023, the Company held a special meeting of stockholders (the “First Extension Meeting”) to vote on a proposal to extend the date by which the Company must complete its initial business combination from April 25, 2023 to October 25, 2023 (the “First Extension Amendment Proposal”), and the stockholder approved the First Extension Amendment Proposal at that meeting. Upon vote at the First Extension Meeting, stockholders approved extending the initial business combination period from April 25, 2023 to October 25, 2023, waiving the prior requirement of the Sponsor to purchase up to an additional 2,300,000 private placement warrants at $1.00 per warrant and depositing $2,000,000 into the Trust Account. In connection with the vote to approve the First Extension Amendment Proposal, the holders of 18,211,208 shares of Class A common stock properly exercised their rights to redeem their shares for cash. In connection with that redemption, approximately $189.4 million was withdrawn from the trust account to fund such redemptions, leaving a balance of approximately $50.6 million.

In connection with the redemption, the Company recorded excise tax liability of $1.9 million. To the extent the Company issues shares during the year ended December 31, 2023, including in connection with the business combination noted below, it likely will reduce the excise tax liability.

In connection with the First Extension Meeting, the Company and the Sponsor, entered into non-redemption agreements (the “Non-Redemption Agreements”) with unaffiliated third parties, pursuant to which such third parties agreed not to redeem (or to validly rescind any redemption requests on) an aggregate of 5,020,000 Class A common shares of the Company (“Non-Redeemed Shares”) in connection with the First Extension Meeting. In exchange for the foregoing commitments, the Sponsor has agreed to transfer an aggregate of 1,255,000 Class B common shares of the Company held by the Sponsor to such third parties immediately following consummation of an initial business combination provided such parties continue to hold such Non-Redeemed Shares through the First Extension Meeting.

The Company’s management has broad discretion with respect to the specific application ~~of the cash held outside of the Trust Account, substantially all~~ of the net proceeds of the Initial Public Offering and the sale of Private Placement Warrants, ~~which are held in a Trust Account,~~although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete one or more initial Business Combinations with one or more operating businesses or assets with a fair market value equal to at least 80% of the value of the net assets held in the Trust Account (as defined below) (excluding the deferred underwriting commissions and taxes payable on the interest earned on the Trust Account). The Company will only complete a Business Combination if the post transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). Upon the closing of the Initial Public Offering, management has agreed that an amount equal to at least $10.20 per Unit sold in the Initial Public Offering, including proceeds of the Private Placement Warrants, will be held in a trust account (“Trust Account”), located in the ~~Trust Account~~United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting certain conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the funds held in the Trust Account, as described below.

5Business Combination Agreement

~~Table~~On June 26, 2023, the Company, Betters Medical Investment Holdings Limited, a Cayman Islands exempted company (“Betters”), Baird Medical Investment Holdings Limited, a Cayman Islands exempted company and a direct, wholly owned subsidiary of ~~Contents~~Betters (“PubCo”), Betters Medical Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of PubCo (“Merger Sub” and, together with PubCo, each, individually, an “Acquisition Entity” and, collectively, the “Acquisition Entities”), and Tycoon Choice Global Limited, a business company limited by shares incorporated under the Laws of the British Virgin Islands and a direct, wholly owned subsidiary of Betters (“Tycoon”), entered into a Business Combination Agreement (the “Business Combination Agreement”). The Business Combination Agreement and the transactions contemplated thereby (the “Transactions”) were unanimously approved by the Company’s board of directors. The Transactions were also unanimously approved by the board of directors of each of PubCo, Merger Sub, Betters and Tycoon, approved by the stockholders of Betters, approved by the sole stockholder of Tycoon and approved by the sole stockholder of Merger Sub.

The Company will provide the holders of the outstanding Public Shares (the “Public ~~Shareholders”~~Stockholders”) with the opportunity to redeem all or a portion of their Public Shares either (i) in connection with a ~~shareholders~~stockholders meeting called to approve the Business Combination or (ii) by means of a tender offer in connection with the Business Combination. The decision as to whether the Company will seek ~~shareholder~~

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stockholder approval of a Business Combination or conduct a tender offer will be made by the Company. The Public ~~Shareholders~~Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.20 per Public Share, plus any pro rata interest then in the Trust Account, net of taxes payable). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Public Shares subject to redemption ~~will be~~are recorded at a redemption value and classified as temporary equity ~~upon the completion of the Initial Public Offering~~ in accordance with the Accounting Standards Codification (“ASC”) Topic 480 ~~“Distinguishing~~“Distinguishing Liabilities from ~~Equity”~~Equity” (“ASC 480”).

The Company will not redeem Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001 (so that it does not then become subject to the SEC’s “penny stock” rules) or any greater net tangible asset or cash requirement which may be contained in the agreement relating to the Business Combination. If the Company seeks ~~shareholder~~stockholder approval of the Business Combination, the Company will proceed with a Business Combination if a majority of the outstanding shares voted are voted in favor of the Business Combination, or such other vote as required by law or stock exchange rule. If a ~~shareholder~~stockholder vote is not required by applicable law or stock exchange listing requirements and the Company does not decide to hold a ~~shareholder~~stockholder vote for business or other reasons, the Company will, pursuant to its second amended and restated certificate of incorporation (the “Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, ~~shareholder~~stockholder approval of the transaction is required by applicable law or stock exchange listing requirements, or the Company decides to obtain ~~shareholder~~stockholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks ~~shareholder~~stockholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares (as defined in Note 5) and any Public Shares purchased during or after the Public Offering in favor of approving a Business Combination. Additionally, each Public ~~Shareholder~~Stockholder may elect to redeem ~~its~~their Public Shares without voting, and if ~~it does~~they do vote, irrespective of whether ~~it votes~~they vote for or against the proposed transaction.

Notwithstanding the foregoing, if the Company seeks ~~shareholder~~stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Certificate of Incorporation ~~will provide~~provides that a Public ~~Shareholder,~~Stockholder, together with any affiliate of such ~~shareholder~~stockholder or any other person with whom such ~~shareholder~~stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% of the Public Shares, without the prior consent of the Company.

The holders of the Founder Shares have agreed (a) to waive their redemption rights with respect to the Founder Shares and Public Shares held by them in connection with the completion of a Business Combination and (b) not to propose an amendment to the Certificate of Incorporation (i) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with a Business Combination or to redeem 100% of its Public Shares if the Company does not complete a Business Combination within the Combination Period (as defined below) or (ii) with respect to any other provision relating to stockholders’ rights or pre-business combination activity, unless the Company provides the Public ~~Shareholders~~Stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment.

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If the Company is unable to complete its initial business combination within 18 months from the closing of the initial public offering (April 25, 2023), the time period to complete an initial business combination can be extended in two ways: (i) the Sponsor can extend the time period to complete an initial business combination by an additional three months (July 25, 2023) by purchasing additional private placement warrants with an aggregate purchase price of $2,300,000 and (ii) the Company’s shareholders can also vote at any time to amend the Company’s amended and certificate of incorporation to modify the amount of time the Company will have to complete an initial business combination. The time period the Company has to complete an initial business combination, as it may be extended as described above, is referred to as the “Combination Period”. If the Company has not completed a Business Combination ~~within the Combination Period,~~by April 25, 2024, as such date may be extended (the “Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to pay taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public Stockholders’ rights as ~~shareholders~~stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining ~~shareholders~~stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Period.

The holders of the Founders Shares have agreed to waive their liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the holders of Founder Shares acquire Public Shares in or after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 6) held in the Trust Account in the event the Company does not complete a Business

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Combination within the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00).

In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (i) $10.20 per Public Share or (ii) such lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.20 per Public Share due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except for the Company’s independent registered accounting firm), prospective target businesses and other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.

~~Liquidity~~Going Concern and Management’s Plan

As of September 30, 2023, the Company had cash of $303,100 and working capital deficit of $9,204,596.

The Company ~~had~~has incurred and expects to continue to incur significant costs in pursuit of its acquisition plans and while the Company believes it has sufficient access to additional sources of capital, if necessary, there is no current commitment on the part of any financing source to provide additional capital and no assurances can be provided that such additional capital will ultimately be available. In addition, the Company currently has less than 12 months from the date these unaudited condensed financial statements were issued to complete a ~~working capital deficiency as~~Business Combination and if the Company is unsuccessful in consummating an Initial Business Combination by the end of ~~September 30, 2021 of $644,446.~~the Combination Period, which is less than twelve months from the date these unaudited condensed financial statements were issued, it is required to liquidate and dissolve. In connection with the Company’s assessment of going concern considerations in accordance with Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management ~~believes~~has determined that ~~the funds which the Company has available following the completion of the Initial Public Offering will enable it to sustain operations for a period of at least one-year from the issuance date of~~ these ~~financial statements. Accordingly,~~factors raise substantial doubt about ~~the Company’s~~its ability to continue as a going ~~concern as disclosed in previously issued~~concern. The unaudited condensed financial statements ~~has been alleviated.~~

do not include any adjustments that might result from the outcome of this uncertainty. As ~~noted above, on October 25, 2021,~~is customary for a special purpose acquisition company, if the Company ~~consummated~~is not able to consummate a Business Combination during the Combination Period, it will cease all operations and redeem the Public ~~Offering generating gross proceeds of $230,000,000. Simultaneously with~~Shares. Management plans to continue its efforts to consummate a Business Combination during the closing of the Public Offering, the Company consummated the sale of Private Placement Warrants to the Sponsor generating gross proceeds of $11,700,000. As of October 25, 2021, $2,500,000 of the proceeds were held in cash outside of the Trust Account and available for working capital purposes.Combination Period.

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Risks and Uncertainties

Management is currently evaluating the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these unaudited condensed financial statements. ~~The~~These unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Also, on October 7, Hamas launched an attack on Israel resulting in Israel declaring war on Hamas. It is Hamas’s announced intent to instigate a regional war on Israel by those countries sympathetic to its cause. Additionally, the Russian Federation and Ukraine remain at war. The Company’s ability to consummate a Business Combination, or the operations of a target business with which the Company ultimately consummates a Business Combination, may be materially and adversely affected by these military actions and related sanctions. In addition, the Company’s ability to consummate a transaction may be dependent on the ability to raise equity and debt financing which may be impacted by these events, including as a result of increased market volatility, or decreased market liquidity in third-party financing being unavailable on terms acceptable to the Company or at all. The impact of this action and related sanctions on the world economy and the specific impact on the Company’s financial position, results of operations or ability to consummate a Business Combination are not yet determinable. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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Inflation Reduction Act of 2022

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its stockholders from whom shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases made during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “U.S. Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax.

Any redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the U.S. Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company’s ability to complete a Business Combination.

The Company determined that the $189,396,563 in trust account value relating to the Class A common stock redeemed (as noted above) is subject to the excise tax. Accordingly, an excise tax payable of $1,893,966 was recognized upon the redemptions and was recorded as a liability on the unaudited condensed balance sheet and as a charge to Accumulated Deficit. The Company will continue to assess the excise tax payable recognizing an additional excise tax liability for any future stock repurchases/redemptions and netting such liability for any future stock issuances within the same annual period.

NOTE 2.2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited condensed financial statements ~~have been prepared~~are presented in ~~accordance~~conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the ~~Securities~~SEC.

Certain information and ~~Exchange Commission (“SEC”). The accompanying~~note disclosures normally included in the unaudited condensed financial statements prepared in accordance with US GAAP have been condensed. As such, except as disclosed herein, the information included in these unaudited condensed financial statements should be read in conjunction with the ~~Company’s final prospectus for its Initial Public Offering,~~audited condensed financial statements as of December 31, 2022 filed with the SEC on ~~October 22, 2021, as well as~~ the ~~Company’s Current Report on~~ Form ~~8-K, as filed with the SEC on October 29, 2021.~~

10-K. In the opinion of the Company’s management, ~~the~~these unaudited condensed financial statements ~~as of September 30, 2021 and for the period from March 15, 2021 (inception) through September 30, 2021~~ include all adjustments, which are only of a normal and recurring nature, necessary for a fair statement of the Company’s financial position ~~of the Company~~ as of September 30, ~~2021~~2023 and ~~its~~the Company’s results of operations and cash flows for the ~~period from March 15, 2021 (inception) through September 30, 2021.~~periods presented. The results of operations for the ~~period from March 15, 2021 (inception) through~~three and nine months ended September 30, ~~2021~~2023 are not necessarily indicative of the results to be expected for the ~~period from March 15, 2021 (inception) through~~full year ending December 31, ~~2021.~~2023.

Emerging Growth Company

The Company is an “emerging growth ~~company,”~~company”, as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic

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reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s unaudited condensed financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of the unaudited condensed financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements and the reported amounts of expenses during the reporting period.

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Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the balance sheet, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution which, at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts, however, in the event of a financial institution failure, cash balances in excess of $250,000 may be unrecoverable to the Company.

Cash and ~~Cash Equivalents~~cash equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash ~~and cash~~ equivalents as of September 30, ~~2021.~~2023 and December 31, 2022.

~~Deferred~~ Investments held in Trust Account

At September 30, 2023 and December 31, 2022, the Company had approximately $51.5 million and $237.7 million in investments held in the Trust Account, respectively. In the three and nine months ended September 30, 2023, the Company withdrew $1.2 million and $1.4 million, respectively, from interest earned on the Trust Account to pay Federal, State, and Delaware franchise taxes.

Offering Costs associated with an Initial Public Offering

The Company complies with the requirements of the Financial Accounting Standards Board (“FASB”) ASC ~~Topic~~ 340-10-S99-1 and SEC Staff Accounting Bulletin (“~~SAB~~”SAB”) Topic 5A, “Expenses of Offering.” ~~Deferred offering~~Offering costs ~~consist~~associated with the Units were allocated between temporary equity and the Public Warrants by the relative fair value method. Offering costs of $876,465 consisted principally of costs incurred in connection with preparation for the Initial Public ~~Offering.~~Offering such as professional fees and listing and filing fees. These offering costs, together with the ~~underwriting discounts~~underwriter fees of $12,650,000, were allocated between temporary equity and ~~commissions, will be charged to additional paid~~the Public Warrants in ~~capital~~a relative fair value method upon completion of the Initial Public ~~Offering or charged to operations if the Initial Public Offering is not completed. At September 30, 2021, the Company had deferred offering costs~~Offering.

Table of ~~$439,296.~~Contents

Class A ~~Common Stock Subject~~common stock subject to ~~Possible Redemption~~possible redemption
The Company accounts for its common stock subject to possible redemption in accordance with the guidance enumerated in ASC ~~480~~ ~~“Distinguishing Liabilities from Equity”.~~480. Common stock subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable common stock (including common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, common stock are classified as ~~shareholders’~~stockholders’ equity. The Company’s Class A common stock feature certain redemption rights that are considered by the Company to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, at September 30, 2023 and December 31, 2022, the Class A common stock subject to possible redemption in the amount of $50,989,057 and $236,903,730 is presented as temporary equity, outside of the stockholders equity section of the Company’s balance sheets, respectively. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid-in capital and accumulated deficit.
At September 30, 2023 and December 31, 2022, the Class A common stock reflected in the balance sheets is reconciled in the following table:

Class A common stock subject to possible redemption – December 31, 2021

$
234,600,000
Remeasurement adjustment of carrying value to redemption value

2,303,730
Class A common stock subject to possible redemption – December 31, 2022

236,903,730
Remeasurement adjustment of carrying value to redemption value

3,481,890
Redemptions and withdrawals

(189,396,563)
Class A common stock subject to possible redemption – September 30, 2023

$
50,989,057

Net income (loss) per share
Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The Company applies the two-class method in calculating earnings and losses per share. Earnings and losses are shared pro rata between the two classes of shares. The calculation of diluted income (loss) per share of common stock does not consider the effect of the warrants issued in connection with the (i) Public Offering and (ii) Private Placement, since their inclusion would be anti-dilutive under the two-class method. As a result, diluted earnings and losses per share of common stock is the same as basic earnings and losses per share of common stock for the periods presented. The warrants are exercisable to purchase shares of 11,500,000 Class A common stock in the aggregate.
The following table reflects the calculation of basic and diluted net income (loss) per common share (in dollars, except per share amounts):

Three Months Ended

Three Months Ended

September 30,

September 30,


2023

2022
Class A Common Stock

Numerator: Income (Loss) allocable to Class A common stock

$
(772,038)

323,630
Denominator: Basic and diluted weighted average shares outstanding

4,788,792

23,000,000
Basic and diluted net income (loss) per share, Class A Common Stock

(0.16)

0.01

Class B Common Stock

Numerator: Income (Loss) allocable to Class B common stock

$
(927,002)

$
80,907
Denominator: Basic and diluted weighted average shares outstanding

5,750,000

5,750,000
Basic and diluted net income (loss) per share, Class B Common Stock

(0.16)

0.01

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Nine Months Ended

Nine Months Ended

September 30,

September 30,


2023

2022
Class A Common Stock




Numerator: Income (Loss) allocable to Class A Common Stock

$
(1,729,859)

(272,722)
Denominator: Basic and diluted weighted average shares outstanding

11,659,687

23,000,000
Basic and diluted net income (loss) per share, Class A Common Stock

(0.15)

(0.01)

Class B Common Stock

Numerator: Income (Loss) allocable to Class B Common Stock

$
(853,084)

(68,180)
Denominator: Basic and diluted weighted average shares outstanding (1)

5,750,000

5,750,000
Basic and diluted net income (loss) per share, Class B Common Stock

(0.15)

(0.01)

Income Taxes
The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.”” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the unaudited condensed financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
ASC 740 prescribes a recognition threshold and a measurement attribute for the unaudited condensed financial ~~statement~~statements recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. ~~There were 0~~The Company accrued $114,684 unrecognized tax ~~benefits and 0~~benefit related to amortizing startup costs for the period ending September 30, 2023. No amounts have been accrued for interest and penalties as of September 30, ~~2021.~~2023 and 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.
The Company’s effective tax rate was (8.2)% and (55.8)% for the three and nine months ended September 30, 2023, respectively. The Company’s effective tax rate was 33.2% and (143.5%) for the three and nine months ended September 30, 2022, respectively. The effective tax rate differs from the statutory tax rate of 21.0% for the three months ended September 30, 2023 and 2022, due to changes in the valuation allowance on the deferred tax assets.
While ASC 740 identifies usage of the effective annual tax rate for purposes of an interim provision, it does allow for estimating individual elements in the current period if they are significant unusual or infrequent. Computing the ETR for the Company is complicated due to the potential impact of the Company’s change in fair value of warrants for any other change in fair value of a complex financial instrument), the timing of any potential Business Combination expenses and the actual interest income ~~taxes was deemed~~that will be recognized during the year. The Company has taken a position as to the calculation of income tax expenses in the current period based on 740-270-25-3 which states, “if an entity is unable to estimate a part of its ordinary income (or loss) or the related tax (or benefit) but is otherwise able to make a reliable estimate, the tax (or benefit) applicable to the item that cannot be estimated shall be reported in the interim period in which the item is reported.” The Company believes its calculation to be ~~de minimis for~~a reliable estimate and allows it to properly take into account the ~~period from March 15, 2021 (inception)~~unusual elements that can impact its annualized book income and its impact on ETR. As such, the Company is computing its taxable income (loss) and associated income tax provision based on actual results through September 30, ~~2021. The Company’s deferred tax assets were deemed to be de minimis as of September 30, 2021.~~2023.

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Fair Value of Financial Instruments

Fair value ~~of financial instruments~~

~~The fair value of~~is defined as the ~~Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “~~~~Fair Value Measurement~~~~,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. The Company determines fair value based on assumptions~~price that ~~market participants~~ would ~~use in pricing~~be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the ~~principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following~~measurement date. US GAAP establishes a three-tier fair value hierarchy, ~~distinguishes between observable and unobservable~~which prioritizes the inputs ~~which are categorized~~used in ~~one of~~measuring fair value. The hierarchy gives the ~~following levels:~~

~~Level 1 Inputs: Unadjusted~~highest priority to unadjusted quoted prices in active markets for identical assets or ~~instruments in active markets.~~

~~Level 2 Inputs: Quoted prices for similar instruments in active markets~~liabilities (Level 1 measurements) and ~~quoted prices for identical or similar instruments in markets that are not active and model derived valuations whose~~the lowest priority to unobservable inputs ~~are observable or whose significant value drivers are observable.~~

~~Level~~(Level 3 ~~Inputs: Significant inputs into the valuation model are unobservable.~~measurements). These tiers include:

●

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

●

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The Company does not have any recurring Level 2 or Level 3 assets or liabilities. The carrying value of the Company’s financial instruments including its cash and accrued liabilities approximate their fair values principally because of their short-term nature.

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, ““Derivatives and Hedging” (“ASC 815”). For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not ~~net~~net- cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

~~Net Loss per Common Share~~Warrants

~~Net loss per share is computed by dividing net loss by~~The Company accounts for warrants as equity-classified instruments based on an assessment of the ~~weighted average number~~warrant’s specific terms and applicable authoritative guidance in ASC 480 and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common shares ~~of common stock outstanding during~~and whether the period, excluding shares of common stock subject to forfeiture. Weighted average shares were reduced for the effect of an aggregate of 750,000 shares of Common stock that are subject to forfeiture if the over-allotment option is not exercised by the underwriters (see Note 5). At September 30, 2021 the Company did not have any dilutive securities and other contracts thatwarrant holders could potentially ~~be exercised or converted into shares of common stock and then share~~require “net cash settlement” in ~~the earnings~~a circumstance outside of the ~~Company. As~~Company’s control, among other conditions for equity classification. This assessment is conducted at the time warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a ~~result, diluted loss per share is~~component of additional paid-in capital at the ~~same as basic loss per share~~time of issuance. For issued or modified warrants that do not meet all of the criteria for equity classification, the ~~period presented.~~warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter.

Recent Accounting Standards

~~In August 2020, the FASB issued ASU No. 2020-06,~~ ~~“Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”.~~ ~~The update simplifies the accounting for convertible instruments by removing certain separation models in Subtopic 470-20,~~ ~~Debt—Debt with Conversion and Other Options~~ for convertible instruments and introducing other changes. As a result of ASU No. 2020-06, more convertible debt instruments will be accounted for as a single liability measured at its amortized cost and more convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no features require bifurcation and recognition as derivatives. The amendments are effective for smaller reporting companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted ASU No. 2020-06 upon its incorporation. The impact to our balance sheet, statement of operations and cash flows was not material.

Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed financial statements.

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NOTE 3.3 — INITIAL PUBLIC OFFERING

Pursuant to the Initial Public Offering, ~~on October 25, 2021,~~ the Company sold 20,000,000 Units at a purchase price of $10.00 per Unit generating gross proceeds to the Company in the amount of $200,000,000. Each Unit consists of 1one share of the Company’s Class A common stock, par value $0.0001 per share (the “Class A ~~Common Stock”~~common stock”), and ~~one-half~~of ~~one~~ redeemable warrant of the Company (each whole warrant, a “Warrant”), with each whole Warrant entitling the holder thereof to purchase one whole share of Class A ~~common stock~~Common Stock at a price of $11.50 per share, subject to adjustment.

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On October 25, 2021, the underwriters purchased an additional 3,000,000 Option Units pursuant to the full exercise of the over-allotment option. The Option Units were sold at an offering price of $10.00 per Unit, generating additional gross proceeds to the Company of $30,000,000.

NOTE 4.4 — PRIVATE PLACEMENT

Simultaneously with the closing of the Initial Public Offering, the Company consummated the private sale (the “Private Placement”) ~~to the Sponsor~~ of an aggregate of 11,700,000 ~~Private~~warrants (the “Private Placement ~~Warrants~~Warrants”) to the Sponsor at a purchase price of $1.00 per Private Placement Warrant, generating gross proceeds to the Company in the amount of $11,700,000. ~~Each Private Placement Warrant is exercisable to purchase 1 share of Class A common stock at a price of $11.50 per share, subject to adjustment.~~

A portion of the proceeds from the Private Placement ~~Warrants~~Units was added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Placement ~~Warrants~~Units held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement ~~Warrants~~Units will be worthless.

The Private Placement Warrants (including the Class A common stock issuable upon exercise of the Private Placement Warrants) will not be transferable, assignable or salable until 30 days after the completion of an Initial Business Combination, subject to certain exceptions.

NOTE 5.5 — RELATED PARTY TRANSACTIONS

Founder Shares

In March 2021, the Sponsor purchased 5,750,000 shares of the Company’s Class B common stock (the “Founder Shares”) in exchange for $25,000. The Founder Shares include an aggregate of up to 750,000 shares subject to forfeiture to the extent that the underwriters’ ~~over-allotment~~overallotment is not exercised in full or in part, so that the number of Founder Shares will equal, on an as-converted basis, approximately 20% of the Company’s issued and outstanding shares of common stock after the Initial Public Offering. The Founder Shares are no longer subject to forfeiture due to full exercise of the over-allotment by the ~~underwriter on October 25, 2021.~~underwriter.

The holders of the Founder Shares have agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last sale reported ~~sale~~ price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for share splits, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital share exchange or other similar transaction that results in all of the Public ~~Shareholders~~Stockholders having the right to exchange their shares of common stock for cash, securities or other property.

In May 2021, each of our independent directors and advisors acquired an equity interest in our sponsor, which owns all of the founder shares. The founder shares are subject to lockup restrictions and will become worthless unless the Company completes a business combination prior to the time the Company is obligated to redeem all of the outstanding Class A common stock. The aggregate fair value of the equity interests in our sponsor transferred to the independent directors and advisors at the date of such transfer was estimated to be $171,000, which was calculated using a valuation model that takes into account various assumptions such as the probability of successfully completing the initial public offering, the probability of successfully completing a business combination, marketability and various other factors. Since the equity interests in the sponsor transferred to each of the independent directors and advisors will be

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~~Borrowings~~worthless unless a business combination is consummated, compensation expense will not be recognized regarding this issuance until consummation of the business combination.

Working Capital Loan - Related Party

On March 18, 2021, the Sponsor issued an unsecured promissory note to the Company (the “Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $300,000. The Promissory Note iswas non-interest bearing and payable on the earlier of (i) December 31, 2021 or (ii) the consummation of the Initial Public Offering. AsOn October 25, 2021 this obligation was exchanged for a non-interest bearing Working Capital Loan of $300,000. On February 28, 2023, the Company borrowed an additional $502,450 under the Working Capital Loan. On May 3, 2023, the Company and the Sponsor entered into the Amended and Restated Promissory Note to amend and restate the terms of the Working Capital Loan. The sole purpose of this amendment was to extend the maturity date of the Working Capital Loan from the previous business combination deadline of April 25, 2023 to the new business combination deadline of October 25, 2023. On October 31, 2023, the Company and the Sponsor entered into the Amended and Restated Promissory Note to amend and restate the terms of the Working Capital Loan. The sole purpose of this amendment was to extend the maturity date of the Working Capital Loan from the previous business combination deadline of October 25, 2023 to the new business combination deadline of April 25, 2024. The maturity date of the Working Capital Loan is the earlier of (i) April 25, 2024 or (ii) the date on which the Company consummates its initial business combination. At September 30, ~~2021, there~~2023 and December 31, 2022, the amount outstanding on the Working Capital Loan was $1,296,654 and $300,000, respectively.

The Sponsor has agreed that at the Closing of the Business Combination, all amounts outstanding under the ~~Promissory Note. In order~~Working Capital Loan will be converted into PubCo Ordinary Shares at a price of $10.20 per share.

Administrative Services Agreement

Commencing on the date the Units are first listed on the New York Stock Exchange, the Company has agreed to ~~finance transaction costs in connection with a Business Combination, the Sponsor or~~pay an affiliate of the Sponsor ~~or certain~~a total of $10,000 per month for office space and administrative and support services. Upon completion of the Initial Business Combination or the Company’s ~~officers and directors may, but are not obligated to, loan~~liquidation, the Company funds as may be required (“Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes may be repaid upon completion of a Business Combination, without interest, or, atwill cease paying these monthly fees. During the lender’s discretion, up to $1,500,000 of the notes may be converted upon completion of a Business Combination into warrants at a price of $1.00 per warrant. Such warrants would be identical to the Private Placement Warrants. In the event that a Business Combination does not close,three and nine months ended September 30, 2023 and 2022, the Company ~~may use a portion of proceeds held outside~~recorded $30,000 and $90,000, respectively, for services under the ~~Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans.~~administrative services agreement.

As of ~~October 25, 2021,~~September 30, 2023 and December 31, 2022, $200,000 and $140,000, respectively, was outstanding and is included in due to related parties on the ~~Promissory Note was converted into a Working Capital Loan, payable upon~~accompanying balance sheets related to the ~~earlier~~administrative services agreement and an additional $92,724 due to the same related party for other miscellaneous operating expenses paid by affiliates of the ~~closing~~Company on behalf of ~~a Business Combination or April 25, 2023. In~~ the ~~event that a Business Combination does not close,~~entity. As of September 30, 2023 and December 31, 2022, the ~~Company may use a portion of proceeds held outside the Trust Account~~total outstanding amounts due to ~~repay the Working Capital Loan but no proceeds held in the Trust Account would be used to repay the Working Capital Loan.~~this related party was $292,724 and $538,558, respectively.

Financial Services Agreement — Related Party

The Company ~~has an arrangement with~~was obligated to pay Fin ~~VC,~~Capital, an affiliate of our Sponsor, ~~to pay,~~ a total of ~~$112,000~~$112,500 per quarter for consulting, legal, accounting and diligence ~~services. Upon completion~~services beginning at the date of ~~our initial~~formation of the Company through the earlier of December 31, 2022 or the closing of the business ~~combination, or our liquidation,~~combination. Accordingly, during the ~~agreement will terminate~~three and ~~we will cease paying these quarterly fees. The Company incurred $224,000 of operating costs under this agreement through~~nine months ended September 30, ~~2021. In~~2023, $0 has been incurred as an expense to related party Fin Capital for these services, respectively. During the ~~event~~three and nine months ended September 30, 2022, $112,500 and $337,500 has been incurred as an expense to related party Fin Capital for these services, respectively. As of September 30, 2023 and December 31, 2022, there was $0 and $337,500 due to Fin Capital and is included in due to related parties on the consummation of our initial business combination takes 18 months, an affiliate of our sponsor will be paid an additional $672,000 ($112,000 per quarter) for consulting, legal, accounting and diligence services.accompanying balance sheets.

Forward Purchase Agreements

Two affiliates of the Sponsor (the “Sponsor Affiliates”) have agreed to purchase up to 6,500,000 units, each consisting of 1one share of Class A common stock and ~~one~~-third~~-half~~ of a warrant, for an aggregate purchase price of up to $65,000,000, in a private placement that will close simultaneously with the closing of our initial business combination. The proceeds from the sale of these forward purchase units, together with the amounts available to the Company from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by the Company in connection with the business combination, will be used to satisfy the

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cash requirements of the business combination, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-business combination company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, the Sponsor Affiliates may purchase less than 6,500,000 forward purchase units. In addition, each affiliate’s commitment under the forward purchase agreement will be subject to approval of its investment committee as well as customary closing conditions under the forward purchase agreement.

The forward purchase shares will be identical to the Class A common stock included in the units being sold in this offering, except that pursuant to the forward purchase agreement, they will not be transferable, assignable or salable until 30 days after the completion of our initial business combination, subject to limited exceptions. The forward purchase warrants will have the same terms as the private placement warrants.

The Company ~~will account~~accounts for the forward purchase agreements (FPA) in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the FPA meets the criteria for equity treatment thereunder, each FPA will be recorded as equity.

~~Table~~Sponsor Funding of ~~Contents~~Trust Account

In order to fund the trust to the required level, the Sponsor purchased, 11,700,000 private placement warrants upon the closing of our initial public offering for a purchase price of $11,700,000, of which $9,200,000 was deposited into the trust account.

NOTE 6.6 — COMMITMENTS AND CONTINGENCIES

Registration Rights

The holders of the Founder Shares, Private Placement ~~Warrants~~Units and warrants that may be issued upon conversion of Working Capital Loans (and any shares of common stock issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of Initial Public Offering requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to shares of Class A common stock). The holders of these securities will be entitled to make up to 3three demands, excluding short form registration demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not be required to effect or permit any registration or cause any registration statement to become effective until the securities covered thereby are released from their lock-up restrictions. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriters were paid a cash underwriting discount of $0.20 per Unit, or $4,600,000, upon the closing of the Initial Public Offering. In addition, the underwriters are entitled to a deferred fee of $0.35 per Unit, or $8,050,000. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. The Company entered into fee waiver agreements with KeyBanc Capital Markets Inc. and UBS Securities LLC on August 7, 2023 and August 11, 2023, respectively. Eighty percent (80%), or $6,440,000 in the aggregate, of the deferred underwriting fees have been waived, leaving $1,610,000 of deferred underwriting fees payable to EXOS Securities LLC upon closing pursuant to the Business Combination Agreement. The Company recorded a reduction of $6,440,000 of deferred underwriting fees payable and a gain on forfeiture of deferred underwriting compensation payable in the period ending September 30, 2023. Although the UBS Securities LLC waiver of $6,037,500 relates only to the business combination that may be consummated pursuant to the Business Combination Agreement with Baird Medical, the Company believes that there is only a remote possibility that the Company could consummate another business combination if the Business Combination Agreement with Baird Medical were to be terminated for any reason.

The Company granted the underwriters a 45-day option from the date of Initial Public Offering to purchase up to 3,000,000 additional Units to cover over-allotments, if any, at the Initial Public Offering price less the underwriting discounts and commissions.

The underwriters were entitled to a cash underwriting discount of $0.20 per Unit, or $4,000,000 in the aggregate (or $4,600,000 in the aggregate if the underwriters’ over-allotment option was exercised in full), payable upon the closing of the Initial Public Offering. In addition, the underwriters were entitled to a deferred fee of $0.35 per Unit, or $7,000,000 in the aggregate (or $8,050,000 in the aggregate if the underwriters’ over-allotment option was exercised in full). The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.

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Business Combination Related Agreement

On February 23, 2023, the Company entered into a capital markets and advisory agreement. Fees are earned and payable on closing of the business combination. The fee is 0.4% of the target’s enterprise value. There is also a discretionary fee, the amount of which is determined by the Company.

On July 18, 2023, the Company engaged Roth Capital Partners, LLC (“Roth”) to serve as a capital markets advisor. On September 7, 2023, the Company engaged Haitong International Securities (USA) Inc. (“HTI-USA”) to act as a placement agent in connection with a potential PIPE Investment. Upon the consummation of the Business Combination, each of Roth and HTI-USA will be paid an advisory fee of $500,000 and a placement agent fee equal to 6.0% of gross proceeds raised by the respective advisor., and will also be entitled to reimbursement for certain of their out-of-pocket expenses.

NOTE ~~7. STOCKHOLDER’S~~7 — STOCKHOLDERS’ DEFICIT
Preferred Stock—The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, ~~2021,~~2023 and December 31, 2022, there were 0no shares of preferred stock issued or ~~outstanding~~.outstanding.
Class A Common Stock—The Company is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to 1one vote for each share. As of September 30, ~~2021,~~2023 and December 31, 2022, there were 0no shares of Class A common stock issued or ~~outstanding~~.outstanding. As of September 30, 2023 and December 31, 2022, 4,788,792 and 23,000,000 shares, respectively, of Class A common stock subject to possible redemption are presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheets.
Class B Common Stock—The Company is authorized to issue 50,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders of Class B common stock are entitled to 1one vote for each share. As of September 30, ~~2021,~~2023 and December 31, 2022, there were 5,750,000 shares of Class B common stock issued and ~~outstanding~~, of which an aggregate of up to 750,000 shares of Class B common stock are subject to forfeiture to the extent that the underwriters’ over-allotment option is not exercised in full or in part so that the number of Founder Shares will equal 20% of the Company’s issued and outstanding common stock after the Initial Public Offering.outstanding.

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On October 25, 2021, the underwriters exercised the over-allotment option in full to purchase 3,000,000 Public Units. As a result, 750,000 founder shares are no longer subject to forfeiture. Holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters submitted to a vote of our ~~shareholders~~stockholders except as otherwise required by law. In connection with our initial business combination, wethe Company may enter into a stockholders’ agreement or other arrangements with the stockholders of the target or other investors to provide for voting or other corporate governance arrangements that differ from those in effect upon completion of this offering.

The shares of Class B common stock will automatically convert into Class A common stock at the time of a Business Combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the then-outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination ~~excluding~~(net of the ~~forward purchase units and~~number of shares of Class A common stock redeemed in connection with a Business Combination), excluding any shares or equity-linked securities issued or issuable to any seller of an interest in the target to us in a Business Combination.

Warrants - —Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation.

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The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of residence of the exercising holder, or an exemption from registration is available.

The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of a Business Combination, the Company will use its commercially reasonable efforts to file, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

Redemption of Warrants When the Price per Share of Class A Common Stock Equals or Exceeds $18.00—Once the warrants become exercisable, the Company may redeem the outstanding Public Warrants:

●

in whole and not in part;

●

at a price of $0.01 per Public Warrant;

●

upon a minimum of 30 ~~days'~~days’ prior written notice of redemption, or the 30-day redemption period to each warrant holder; and

●

if, and only if, the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganization, recapitalizations and the like) for any 20 trading days within a ~~30-trading~~30-trading day period ending on the ~~third~~trading ~~trading~~ day prior to the date on which the Company sends the notice of redemption to warrant holders.

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If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

If the Company calls the Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of common stock issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of Public Warrants will not receive any of such funds with respect to their Public Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such Public Warrants. Accordingly, the Public Warrants may expire worthless.

Our Sponsor has purchased an aggregate of 11,700,000 Private Placement Warrants at a price of $1.00 per warrant ($11,700,000 in the aggregate) in a private placement that occurred simultaneously with the closing of our IPO. Each Private Placement Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as provided herein. The Private Placement Warrants are identical to the ~~Public Warrants underlying~~warrants sold as part of the ~~Units being~~units in our IPO except that: (1) they will not be redeemable by us; (2) they (including the shares of Class A common stock issuable upon exercise of these warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold inby our Sponsor until 30 days after the ~~Public Offering.~~completion of our initial business combination; (3) they may be exercised by the holders on a cashless basis; and (4) they (including the shares of Class A common stock issuable upon exercise of these warrants) are entitled to registration rights.

The Company ~~accounted~~accounts for the 23,200,000 warrants ~~to be~~ issued in connection with the Initial Public Offering (including 11,500,000 Public

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Warrants and 11,700,000 Private Placement Warrants assuming the underwriters’ over-allotment option iswas not exercised) in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the warrants meet the criteria for equity treatment thereunder, each warrant will be recorded as equity.

NOTE 8 — FAIR VALUE MEASUREMENTS
The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.
The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:
Level 1—quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2—observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
Level 3—unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.
The Company’s portfolio of investments is comprised of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less and generally have a readily determinable fair value. Such investments are classified as trading securities. Trading securities are presented on the balance sheet at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in net gain on investments held in Trust Account in the accompanying statement of operations. The estimated fair values of investments held in the Trust Account are determined using available market information. At September 30, 2023 and December 31, 2022, the Company had $51.5 million and $237.7 million, respectively, in investments held in the Trust Account.
The following table presents information about the Company’s assets and liabilities that are measured at fair value as of September 30, 2023 and December 31, 2022:

September 30,

December 31,
Description

Level

2023

2022
Assets:

Investments held in Trust Account

1

$
51,478,893

$
237,735,165

NOTE 8.9 — SUBSEQUENT EVENTS
~~Management~~The Company’s management has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the unaudited condensed financial ~~statement was~~statements were issued. Based upon this review, ~~except as noted below,~~ the Company did not identify any subsequent events that would have required adjustment or disclosure in the unaudited condensed financial ~~statements.~~statements, except for the following matters.
On October 20, 2023, the Company held a special meeting of stockholders (the “Second Extension Meeting”) to vote on a proposal to extend the date by which the Company must complete its initial business combination from October 25, 2023 to April 25, 2024 (the “Second Extension Amendment Proposal”), and the stockholders approved the Second Extension Amendment Proposal at that meeting. In connection with the vote to approve the Second Extension Amendment Proposal, the holders of 2,587,259 shares of Class A Common Stock (representing 54% of the shares of Class A Common Stock then outstanding) properly exercised their rights to redeem their shares for cash. In connection with the redemption, approximately $27.6 million was withdrawn from the trust account to fund such

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redemptions, leaving a balance of approximately $23.5 million. Prior to that redemption, approximately $0.4 million was withdrawn from the trust account to pay income and franchise taxes.

On October 25, ~~2021,~~2023, all outstanding shares of the Company’s Class B Common Stock were converted into an equal number of shares of ExcelFin Class A Common Stock.

As of September 30, 2023, funds in the Trust Account held only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds investing solely in U.S. government treasury obligations and meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940, as amended (the “Investment Company Act”). However, to mitigate the risk of us being deemed to have been operating as an unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the Investment Company Act), prior to the 24-month anniversary of the effective date of the registration statement relating to the Company’s initial public offering, the Company ~~consummated~~instructed American Stock Transfer & Trust Company, the ~~Initial Public Offering of 20,000,000 units (“Units” and,~~trustee with respect to the ~~common stock included~~Trust Account (the “Trustee”), to liquidate the U.S. government treasury obligations or money market funds held in the ~~Units being offered,~~Trust Account and to hold all funds in the ~~“Public Shares”), generating gross proceeds~~Trust Account in cash in an interest bearing account until the earlier of ~~$200,000,000, which is described in Notes 1 and 3.~~

~~Simultaneously~~consummation of our initial business combination or liquidation. In connection with ~~the closing of the Initial Public Offering,~~such instructions, on October 26, 2023, the Company ~~consummated~~and the ~~sale~~Trustee entered into an amendment to the Investment Management Trust Agreement dated October 25, 2021, which governs the investment of ~~11,700,000 warrants (the “Private Placement Warrants”) at a price~~monies held in the Trust Account, to specifically allow the investment of ~~$1.00 per Private Placement Warrant in private placements to ExcelFin SPAC LLC (the “Sponsor”) for gross proceeds of $11,700,000, which is described in Notes 1 and 4.~~those funds into an interest bearing account.

On October ~~25, 2021, the underwriters notified~~31, 2023, the Company ~~of their exercise~~and the Sponsor entered into the Amended and Restated Promissory Note to amend and restate the terms of the ~~over-allotment option in full and purchased 3,000,000 additional Units at $10.00 per Unit upon~~Working Capital Loan. The sole purpose of this amendment was to extend the ~~closing~~maturity date of the over-allotment option, generating gross proceeds of $30,000,000. The over-allotment option closed on October 25, 2021. Due to the full exercise of the underwriter’s over-allotment option, 750,000 shares of Class B common stock that were previously subject to forfeiture are no longer subject to forfeiture.

~~On October 25, 2021, the Promissory Note was converted into a~~ Working Capital Loan ~~payable upon~~from the ~~earlier~~previous business combination deadline of October 25, 2023 to the ~~closing~~new business combination deadline of ~~a Business Combination or~~ April 25, ~~2023.~~

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
References in this Quarterly Report on Form 10-Q (this “Quarterly Report”) to “we,” “us” or the “Company” refer to Excelfin Acquisition Corp. References to our “management” or our “management team” refer to our officers and directors, and references to the “Sponsor” refer to ExcelFin SPAC LLC. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.
~~Note Regarding Forward-Looking Statements~~
This quarterly report on Form 10-Q includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings.
Overview
We ~~were~~are a blank check company incorporated as a Delaware corporation and formed ~~on March 15, 2021~~ for the purpose of ~~entering into~~effecting a merger, ~~share~~capital stock exchange, asset acquisition, ~~share~~stock purchase, ~~recapitalization,~~ reorganization or ~~other~~ similar business combination with one or more ~~target~~ businesses. ~~Our efforts to identify a prospective target business will not be limited to any particular industry or geographic region.~~ We intend to ~~utilize~~effectuate our initial business combination using cash ~~derived~~ from the proceeds of our ~~initial public offering in effecting our initial business combination.~~
~~We are an emerging growth company~~IPO and ~~as such, we are subject to all~~the sale of the ~~risks associated with emerging growth companies.~~private placement warrants and forward purchase units, our shares, debt or a combination of cash, shares and debt.
~~We presently have no revenue.~~The Issuance of additional shares of our common stock or preferred stock in a business combination:
● may significantly dilute the equity interest of investors in our IPO, which dilution would increase if the anti-dilution provisions in the Class B common stock resulting in the issuance of shares of Class A common stock on a greater than one-to-one basis upon conversion of the Class B common stock;
● may subordinate the rights of holders of common stock if shares of preferred stock are issued with rights senior to those afforded our common stock;
● could cause a change of control if a substantial number of shares of our common stock is issued, which could result in the resignation or removal of our present directors and officers;
● may have the effect of delaying or preventing a change of control of us by diluting the stock ownership or voting rights of a person seeking to obtain control of us;
● may adversely affect prevailing market prices for our units, Class A common stock and/or warrants; and
● may not result in adjustment to the exercise price of our warrants.
Similarly, if we issue debt or otherwise incur significant indebtedness, it could result in:
● default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations;
● acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;
● our immediate payment of all principal and accrued interest, if any, if the debt is payable on demand;
● our inability to obtain necessary additional financing if the debt contains covenants restricting our ability to obtain such financing while the debt is outstanding;
● our inability to pay dividends on our common stock;
● using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our common stock, expenses, capital expenditures, acquisitions and other general corporate purposes;
● limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;
● increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and
● limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt.

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RESULTS OF OPERATIONS AND KNOWN TRENDS OR FUTURE EVENTS

As of September 30, 2023, the Company had not commenced any operations. All ~~activities~~activity for the period from March 15, 2021 (inception) through September 30, ~~2021, relate~~2023 relates to the Company’s formation and ~~the IPO. We will have no operations other than the active solicitation of a target business with which to complete a business combination, and we~~initial public offering (“Initial Public Offering”). The Company will not generate any operating ~~revenue~~revenues until after ~~our~~the completion of its initial ~~business combination,~~Business Combination, at the earliest. WeThe Company will ~~have~~generate non-operating income in the form of interest income ~~on cash and cash equivalents~~ from the proceeds derived from the Initial Public Offering.

For the three months ended September 30, 2023, we had net loss of $1,699,040, which consists of operating costs of $2,232,010 and tax expenses of $128,385, partially offset by interest income on marketable securities held in trust account of $661,355.

For the three months ended September 30, 2022, we had net income of $404,537 which consists of operating expenses of $473,207 offset by interest income on marketable securities held in trust account of $1,078,640. In addition, the Company recorded an income tax provision of $200,896.

For the nine months ended September 30, 2023, we had a net loss of $2,582,943 which consists of operating expenses of $6,216,455 and tax expenses of $925,566 partially offset by interest income on marketable securities held in trust account of $4,559,078.

For the nine months ended September 30, 2022, we had a net loss of $340,902 which consists of operating expenses of $1,369,256 offset by interest income on marketable securities held in trust account of $1,229,250. In addition, the Company recorded an income tax provision of $200,896.

LIQUIDITY, CAPITAL RESOURCES AND GOING CONCERN

Our liquidity needs have been satisfied prior to the completion of our IPO through receipt of $25,000 from the sale of the founder shares to our sponsor and the borrowing of $300,000 under a non-interest bearing unsecured promissory note prior to the IPO. On October 25, 2021 this obligation was exchanged for a non-interest bearing Working Capital Loan of $300,000 due upon the earlier of (i) the date on which a Business Combination is consummated, or (ii) April 25, 2023, later amended to April 25, 2024. At September 30, 2023, the amount outstanding on this Working Capital Loan was $1,296,654.

On October 25, 2021, we consummated the ~~IPO~~Initial Public Offering of 23,000,000 ~~Public~~ Units at a price of $10.00 per ~~Public~~ Unit, which includes the exercise by the underwriters of the over-allotment option to purchase an additional 3,000,000 Units, generating gross proceeds of $230,000,000. Simultaneously with the closing of the ~~IPO,~~Initial Public Offering, the Company consummated athe private ~~placement~~sale (the “Private Placement”) ~~in which the Sponsor, ExcelFin SPAC LLC, purchased~~of an aggregate of 11,700,000 ~~private~~ warrants (the “Private Placement Warrants”) to the Sponsor at a purchase price of $1.00 per Private Placement Warrant, generating ~~total~~gross proceeds to the Company in the amount of $11,700,000.

~~Upon~~Following the ~~consummation~~Initial Public Offering, the exercise of the ~~IPO~~over-allotment option by the underwriters’ and ~~associated private placements,~~the sale of the Private Placement Warrants, a total of $234,600,000 ~~of cash~~ was placed in the ~~Trust Account, $4,600,000 was paid in underwriter’s commissions~~trust account and we had $2,500,000 of cash ~~was~~ held outside of the ~~Trust Account and was available for the repayment of advances from the Sponsor,~~trust account, after payment of ~~expenses~~costs related to the ~~IPO~~Initial Public Offering, and ~~subsequent~~available for working capital purposes. The Company incurred transaction costs amounted to $22,726,465 consisting of $4,600,000 of underwriting fees paid in cash, $8,050,000 of deferred underwriting fees payable, $9,200,000 funded to the trust account and $876,465 of costs related to the Initial Public Offering. As of September 30, 2023, we had cash of $303,100 held outside of the trust account.

On April 13, 2023, we held a special meeting of stockholders (the “First Extension Meeting”) to vote on a proposal to extend the date by which we must complete its initial business combination from April 25, 2023 to October 25, 2023 (the ��First Extension Amendment Proposal”), and the stockholder approved the First Extension Amendment Proposal at that meeting. Upon vote at the First Extension Meeting, stockholders approved extending the initial business combination period from April 25, 2023 to October 25, 2023, waiving the prior requirement of the Sponsor to purchase up to an additional 2,300,000 private placement warrants at $1.00 per warrant and depositing $2,000,000 into the Trust Account. In connection with the vote to approve the First Extension Amendment Proposal, the holders of 17,900,218 shares of Class A common stock properly exercised their rights to redeem their shares for cash. In connection with that redemption, approximately $189.4 million was withdrawn from the trust account to fund such redemptions, leaving a balance of approximately $50.6 million.

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~~We cannot assure you~~On October 20, 2023, the Company held a special meeting of stockholders (the “Second Extension Meeting”) to vote on a proposal to extend the date by which the Company must complete its initial business combination from October 25, 2023 to April 25, 2024 (the “Second Extension Amendment Proposal”), and the stockholders approved the Second Extension Amendment Proposal at that ~~our plans~~meeting. In connection with the vote to ~~complete our Initial~~approve the Second Extension Amendment Proposal, the holders of 2,587,259 shares of Class A Common Stock (representing 54% of the shares of Class A Common Stock then outstanding) properly exercised their rights to redeem their shares for cash. In connection with the redemption, approximately $27.6 million was withdrawn from the trust account to fund such redemptions, leaving a balance of approximately $23.5 million. Prior to that redemption, approximately $0.4 million was withdrawn from the trust account to pay income and franchise taxes.

On June 26, 2023, we, Betters Medical Investment Holdings Limited, a Cayman Islands exempted company (“Betters”), Baird Medical Investment Holdings Limited, a Cayman Islands exempted company and a direct, wholly owned subsidiary of Betters (“PubCo”), Betters Medical Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of PubCo (“Merger Sub” and, together with PubCo, each, individually, an “Acquisition Entity” and, collectively, the “Acquisition Entities”), and Tycoon Choice Global Limited, a business company limited by shares incorporated under the Laws of the British Virgin Islands and a direct, wholly owned subsidiary of Betters (“Tycoon”), entered into a Business Combination Agreement (the “Business Combination Agreement”).

Pursuant to the Business Combination Agreement (a) on August 2, 2023, Betters contributed all of the issued shares of Tycoon held by Betters (“Company Shares”) to PubCo in exchange for PubCo Ordinary Shares such that Tycoon became a wholly-owned subsidiary of PubCo and Betters received in exchange therefor 29,411,764 PubCo Ordinary Shares (the “Share Contribution”) that have an aggregate value equal to Three Hundred Million Dollars ($300,000,000); and (b) after a special meeting of the stockholders of the Company approving the transactions, Merger Sub will merge with and into ExcelFin, with ExcelFin continuing as the surviving entity and wholly-owned subsidiary of PubCo (the “Merger”).

The Business Combination Agreement provides that at the effective time of the Business Combination (the “Effective Time”):

(i)

each unit that is issued and outstanding shall be automatically divided, and the holder thereof shall be deemed to hold one share of Class A common stock and one-half of one public warrant;

(ii)

each outstanding share of Class A common stock will be exchanged for one PubCo Ordinary Share; and, subject to a vesting requirement for 1,350,000 of such shares held by the Sponsor, each outstanding share of Class B common stock will be cancelled in exchange for one PubCo Ordinary Share; and

(iii)

the registered holder of each outstanding public warrant to purchase one share of Class A common stock will receive, in exchange for such warrants, an equal number of warrants to purchase one PubCo Ordinary Share upon the same terms as were applicable to the public warrants.

There are currently 5,750,000 shares of Class B Common Stock outstanding. The Business Combination Agreement provides that each of these shares of Class B Common Stock will be ~~successful. If~~cancelled in exchange for one PubCo Ordinary Share upon the Closing of the Business Combination. However, 1,350,000 of the PubCo Ordinary Shares issued to the Sponsor in the Business Combination in exchange for Class B Common Stock (the “Earnout Shares”) will not vest unless and until within the fifth anniversary of the closing of the Business Combination (a) the volume weighted average price of the PubCo Ordinary Shares on Nasdaq is greater than or equal to $12.50 per share over any 20 trading days within any 30-day trading period or (b) a change of control of PubCo occurs.

Closing of the Business Combination is subject to the satisfaction of customary closing conditions, including the filing of a registration statement registering the PubCo Ordinary Shares issuable in the Business Combination and a vote of a majority of the Company’s outstanding shares of common stock in favor thereof.

As of September 30, 2023, we ~~are unable~~had cash and marketable securities held in the trust account of $51,478,893. We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account (which interest shall be net of taxes payable and excluding deferred underwriting commissions) plus the proceeds from the sale of the forward purchase units to complete our initial business ~~combination within 18 months from~~combination. We may withdraw interest to pay taxes, if any. Delaware franchise tax is based on our authorized shares or on our assumed par and non-par capital, whichever yields a lower result. Based on the ~~closing~~number of shares of our initial public offering (April 25, 2023), the time period to complete an initial business combination can be extended in two ways: (i) our Sponsor can extend the time period to complete an initial business combination by an additional three months (July 25, 2023) by purchasing additional private placement warrants with an aggregate purchase price of $2,300,000 and (ii) our shareholders can also vote at any time to amend our amended and certificate of incorporation to modify the amount of time we will have to complete an initial business combination. The time period we have to complete an initial business combination, as it may be extended as described above, is referred to as the “Combination Period”. If we have not completed a Business Combination within the Combination Period, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than five business days thereafter, redeem 100% of the outstanding public shares and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining holders of common stock authorized and outstanding and our board of directors, liquidate and dissolve. In the event of liquidation, the holders of the founder shares and Private Warrants will not participate in any redemption distribution with respect to their founder shares or Private Warrants, until all of the claims of any redeeming shareholders and creditors are fully satisfied (and then only from funds held outside the Trust Account).

~~Results of Operations~~

We have neither engaged in any operations nor generated any revenues to date. Our only activities through September 30, 2021 were organizational activities, those necessary to prepare for the Public Offering, described below, and, after our Public Offering, day-to-day operations and identifying a target company for an Initial Business Combination. We do not expect to generate any operating revenues untilestimated total gross proceeds after the completion of our ~~Initial Business Combination. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.~~

~~For the period March 15, 2021 (inception) through September 30, 2021, we had a net loss of $230,150, consisting of operating and formation costs.~~

~~Liquidity and Capital Resources~~

~~As of September 30, 2021, we had no cash.~~

For the period from March 15, 2021 (inception) through September 30, 2021, the net change in cash was $-0-. For the period from March 15, 2021 (inception) through September 30, 2021, cash used in operating activities was $(225,150). For the period from March 15, 2021 (inception) through September 30, 2021, cash provided by financing activities was $225,150.

On October 25, 2021, we consummated the Public Offering of 23,000,000 units (the “Units”), at $10.00 per Unit, generating gross proceeds of $230,000,000. Simultaneously with the closing of the Public Offering, we consummated the sale of 11,700,000 Private Placement Warrants, at $1.00 per Private Placement Warrant, toIPO, our ~~sponsor, generating gross proceeds of $11,700,000. Approximately $2,500,000 of the proceeds is held in cash and available for our general use.~~

~~Off-Balance Sheet Arrangements~~

~~We did not have any off-balance sheet arrangements as of September 30, 2021.~~

~~Contractual obligations~~

~~As of September 30, 2021, we did not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities.~~

The underwriters are entitled to a deferred fee of $8,050,000 in the aggregate. The deferred fee will be waived by the underwriters in the event that we do not complete an Initial Business Combination, subject to the terms of the underwriting agreement.annual franchise

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~~Critical Accounting Policies~~tax obligation is expected to be capped at the maximum amount of annual franchise taxes payable by us as a Delaware corporation of $200,000. Our annual income tax obligations will depend on the amount of interest and ~~Estimates~~

~~This management’s discussion~~other income earned on the amounts held in the trust account. We expect the interest earned on the amount in the trust account will be sufficient to pay our taxes. We expect the only taxes payable by us out of the funds in the trust account will be income and ~~analysis~~franchise taxes, if any. To the extent that shares of our ~~financial condition~~common stock or debt is used, in whole or in part, as consideration to complete our initial business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and ~~results~~pursue our growth strategies.

For the nine months ended September 30, 2023, the decrease in cash was $48,332. For the nine months ended September 30, 2023, cash used in operating activities was $2,448,773. The net loss of ~~operations~~$2,582,943 was affected by interest earned on investments held in the trust account of $4,559,078 and changes in operating assets and liabilities provided by $4,693,248 of cash for operating activities.

For the nine months ended September 30, 2023, cash provided by investing was $190,815,350 due to cash withdrawn from the Trust account.

For the nine months ended September 30, 2023, cash used in financing was $188,414,909 due to proceeds from the issuance of Class A ordinary shares of $189,396,563 and $15,000 in payments of offering costs, partially offset by $996,654 from proceeds from the Working Capital Loan.

For the nine months ended September 30, 2022, cash used in operating activities was $564,324. The net loss of $340,902 was affected by interest earned on investments held in the trust account of $1,229,250 operating costs paid by related parties of $315,000 and changes in operating assets and liabilities provided $690,828 of cash for operating activities.

As of September 30, 2023, we have available to us $303,100 of proceeds held outside the trust account. We will use these funds primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, structure, negotiate and complete a business combination, to pay general and administrative expenses and to pay taxes to the extent the interest earned on the trust account is ~~based~~not sufficient to pay our taxes.

The Company has incurred and expects to continue to incur significant costs in pursuit of its acquisition plans and while the Company believes it has sufficient access to additional sources of capital, if necessary, there is no current commitment on ~~our~~the part of any financing source to provide additional capital and no assurances can be provided that such additional capital will ultimately be available. In addition, the Company currently has less than 12 months from the date these unaudited condensed financial statements ~~which have been prepared~~were issued to complete a Business Combination and if the Company is unsuccessful in consummating an Initial Business Combination, it is required to liquidate and dissolve. In connection with the Company’s assessment of going concern considerations in accordance with ~~United States generally accepted~~Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that these factors raise substantial doubt about its ability to continue as a going concern. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty. As is customary for a special purpose acquisition company, if the Company is not able to consummate a Business Combination during the Combination Period, it will cease all operations and redeem the Public Shares. Management plans to continue its efforts to consummate a Business Combination during the Combination Period.

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In order to fund working capital deficiencies or finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of our directors and officers may, but are not obligated to, loan us funds as may be required. If we complete our initial business combination, we may repay such loaned amounts out of the proceeds of the trust account released to us. Otherwise, such loans may be repaid only out of funds held outside the trust account. In the event that our initial business combination does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such loaned amounts. On October 25, 2021, we exchanged a $300,000 non-interest bearing unsecured promissory note for a non-interest-bearing Working Capital Loan of $300,000 due upon the earlier of (i) the date on which a Business Combination is consummated, or (ii) April 25, 2023, later amended to April 25, 2024. At September 30, 2023, the amount outstanding on this Working Capital Loan was $1,296,654. Up to $1,500,000 of such working capital loans may be convertible into warrants at a price of $1.00 per warrant at the option of the lender. The warrants would be identical to the private placement warrants issued to our sponsor. The terms of such loans, if any, will be subject to the approval of our audit committee. We do not expect to seek loans from parties other than our sponsor or an affiliate of our sponsor as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account. The Sponsor has agreed that at the Closing of the Business Combination, all amounts outstanding under the Working Capital Loan will be converted into PubCo Ordinary Shares at a price of $10.20 per share.

We do not believe we will need to raise additional funds following our IPO in order to meet the expenditures required for operating our business. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial business combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our initial business combination. Moreover, we may need to obtain additional financing either to complete our initial business combination or because we become obligated to redeem a significant number of our public shares upon completion of our initial business combination, in which case we may issue additional securities or incur debt in connection with such business combination. There is no assurance that the Company’s plans to raise additional capital (to the extent ultimately necessary) or to consummate a Business Combination will be successful or successful within the Combination Period.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The net proceeds of our IPO and the sale of the private placement warrants held in the trust account will be invested in U.S. government treasury bills with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. Due to the short-term nature of these investments, we believe there will be no associated material exposure to interest rate risk.

RELATED PARTY TRANSACTIONS

In March 2021, our sponsor purchased an aggregate of 5,750,000 Founder Shares for $25,000, or approximately $0.004 per share. The purchase price of the founder shares was determined by dividing the amount of cash used to purchase such shares by the number of founder shares issued. In connection with the First Extension Meeting, the Company and the Sponsor, entered into non-redemption agreements (the “Non-Redemption Agreements”) with unaffiliated third parties, pursuant to which such third parties agreed not to redeem (or to validly rescind any redemption requests on) an aggregate of 5,020,000 Class A common shares of the Company (“Non-Redeemed Shares”) in connection with the First Extension Meeting. In exchange for the foregoing commitments, the Sponsor has agreed to transfer an aggregate of 1,255,000 Founder Shares held by the Sponsor to such third parties immediately following consummation of an initial business combination provided such parties continue to hold such Non-Redeemed Shares through the First Extension Meeting.

We have entered into an Administrative Services Agreement pursuant to which we will also pay an affiliate of our sponsor a total of $10,000 per month for office space, administrative and support services. Upon completion of our initial business combination or our liquidation, the Administrative Services Agreement will terminate, and we will cease paying these monthly fees.

The Company was obligated to pay Fin Capital, an affiliate of our Sponsor, a total of $112,500 per quarter for consulting, legal, accounting ~~principles.~~ and diligence services until the earlier of December 31, 2022 or the closing of the business combination.

Our audit committee will review and approve all payments that were made by us to our sponsor, directors, officers or our or any of their respective affiliates, which may include reimbursement of any out-of-pocket expenses incurred in connection with activities on our

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behalf such as identifying potential target businesses and performing due diligence on suitable business combinations. There is no cap or ceiling on the reimbursement of out-of-pocket expenses incurred by such persons in connection with activities on our behalf.

On March 18, 2021, our sponsor issued an unsecured promissory note to us (the “promissory note”), pursuant to which we may borrow up to an aggregate principal amount of $300,000. The promissory note is non-interest bearing and payable on the earlier of (i) December 31, 2021 or (ii) the consummation of the IPO. On October 25, 2021, we exchanged a $300,000 the unsecured promissory note for a non-interest-bearing Working Capital Loan of $300,000 due upon the earlier of (i) the date on which a Business Combination is consummated, or (ii) April 25, 2023, later amended to April 25, 2024. As of September 30, 2023 and December 31, 2022, there was $1,296,654 and $300,000 outstanding under the Working Capital Loan. In order to finance transaction costs in connection with a business combination, the sponsor or an affiliate of the sponsor, or certain of our officers and directors may, but are not obligated to, loan us funds as may be required (“working capital loans”). Such working capital loans would be evidenced by promissory notes. The notes may be repaid upon completion of a business combination, without interest, or, at the lender’s discretion, up to $1,500,000 of the notes may be converted upon completion of a business combination into warrants at a price of $1.00 per warrant. Such warrants would be identical to the private placement warrants. In the event that a business combination does not close, we may use a portion of proceeds held outside the trust account to repay the working capital loans but no proceeds held in the trust account would be used to repay the working capital loans.

Our sponsor has purchased an aggregate of 11,700,000 private placement warrants at a price of $1.00 per warrant ($11,700,000 in the aggregate) in a private placement that occurred simultaneously with the closing of our IPO. Each private placement warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as provided herein. The private placement warrants are identical to the warrants sold as part of the units in our IPO except that: (1) they will not be redeemable by us; (2) they (including the shares of Class A common stock issuable upon exercise of these warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold by our sponsor until 30 days after the completion of our initial business combination; (3) they may be exercised by the holders on a cashless basis; and (4) they (including the shares of Class A common stock issuable upon exercise of these warrants) are entitled to registration rights. In order to extend the completion window from 18 to 21 months, our sponsor has the option to purchase 2,300,000 private placement warrants at any time following the closing of our IPO and prior to the consummation of our initial business combination at a purchase price of $1.00 per private placement warrant. These warrants will have the same terms and conditions as the private placement warrants issued at the closing of our IPO.

We entered into a forward purchase agreement with the two Sponsor Affiliates, pursuant to which such affiliates committed that they will purchase from us up to 6,500,000 forward purchase units, consisting of one share of Class A common stock (the “forward purchase shares”) and one-half of one warrant to purchase one share of Class A common stock (the “forward purchase warrants”), for $10.00 per unit, or an aggregate amount of up to $65,000,000, in a private placement that will close concurrently with the closing of our initial business combination. The proceeds from the sale of these forward purchase units, together with the amounts available to us from the trust account (after giving effect to any redemptions of public shares) and any other equity or debt financing obtained by us in connection with the business combination, will be used to satisfy the cash requirements of the business combination, including funding the purchase price and paying expenses and retaining specified amounts to be used by the post-business combination company for working capital or other purposes. To the extent that the amounts available from the trust account and other financing are sufficient for such cash requirements, the Sponsor Affiliates may purchase less than 6,500,000 forward purchase units. In addition, each Sponsor Affiliate’s commitment under the forward purchase agreement will be subject to approval, prior to our entering into a definitive agreement for our initial business combination, of its investment committee as well as customary closing conditions under the forward purchase agreement. The forward purchase shares will be identical to the Class A common stock included in the units sold in our IPO, except that they will be subject to transfer restrictions and registration rights, as described herein. The forward purchase warrants will have the same terms as the private placement warrants.

The forward purchase agreement also provides that the Sponsor Affiliates are entitled to certain registration rights with respect to their forward purchase units, including the Class A common stock underlying their forward purchase warrants.

The proceeds from the sale of the forward purchase units may be used as part of the consideration to the sellers in the initial business combination, expenses in connection with our initial business combination or for working capital in the post-transaction company. These purchases will be required to be made regardless of whether any shares of Class A common stock are redeemed by our public stockholders in connection with our initial business combination and are intended to provide us with a minimum funding level for our initial business combination.

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Pursuant to a registration rights agreement that we entered into with our initial stockholders upon the closing of our IPO, we may be required to register certain securities for sale under the Securities Act. These holders, and holders of warrants issued upon conversion of working capital loans, if any, are entitled under the registration rights agreement to make up to three demands that we register certain of our securities held by them for sale under the Securities Act and to have the securities covered thereby registered for resale pursuant to Rule 415 under the Securities Act. In addition, these holders have the right to include their securities in other registration statements filed by us. However, the registration rights agreement provides that we will not be required to effect or permit any registration or cause any registration statement to become effective until the securities covered thereby are released from their lock-up restrictions, as described herein. We will bear the costs and expenses of filing any such registration statements.

OFF-BALANCE SHEET ARRANGEMENTS; COMMITMENTS AND CONTRACTUAL OBLIGATIONS; QUARTERLY RESULTS

As of September 30, 2023, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K and did not have any commitments or contractual obligations. No unaudited quarterly operating data is included in this report as we have conducted no operations to date.

Critical Accounting estimates and policies

The preparation of ~~these~~ unaudited condensed financial statements and related disclosures in conformity with U.S. GAAP requires usmanagement to make estimates and ~~judgments~~assumptions that affect the reported amounts of assets ~~liabilities, revenues~~ and ~~expenses and the~~liabilities, disclosure of contingent assets and liabilities inat the date of the unaudited condensed financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. The Company has identified the following as its critical accounting estimates and policies:

A critical accounting estimate to our unaudited condensed financial ~~statements. On an ongoing basis, we evaluate our estimates and judgments, including those related to~~statements is the estimated fair value of ~~financial instruments~~our assets and ~~accrued expenses. We base our estimates~~liabilities. Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●

In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on ~~historical experience, known trends~~the lowest level input that is significant to the fair value measurement.

Class A ordinary shares subject to possible redemption

In connection with the vote to approve the First Extension Amendment Proposal, the holders of 17,900,218 shares of Class A common stock properly exercised their rights to redeem their shares for cash. In connection with that redemption, approximately $189.4 million was withdrawn from the trust account to fund such redemptions, leaving a balance of approximately $50.6 million.

The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance enumerated in ASC 480 “Distinguishing Liabilities from Equity”. Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events ~~and various~~not solely within the Company’s

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control) are classified as temporary equity. At all other ~~factors~~times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that ~~we believe~~are considered by the Company to be ~~reasonable under~~outside of the ~~circumstances,~~Company’s control and subject to the ~~results~~occurrence of ~~which form~~uncertain future events. Accordingly, at September 30, 2023 and December 31, 2022, the ~~basis for making judgments about~~Class A common stock subject to possible redemption in the amount of $50,989,057 or $10.65 per share and $234,600,000 or $10.26 per share, respectively, are presented as temporary equity, outside of the stockholders’ deficit section of the Company’s balance sheets.

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying ~~values~~value of ~~assets~~redeemable shares of Class A common stock to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized a measurement adjustment from initial book value to redemption amount value. The change in the carrying value of the redeemable Class A common stock resulted in charges against additional paid-in capital and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. There were no critical estimates as of September 30, 2021 in preparing the Company’s financial statements. Our most critical accounting policy as of September 30, 2021 was as follows:accumulated deficit.

Net ~~Loss Per Common Share~~income (loss) per share

Net ~~loss~~income (loss) per ~~common~~ share is computed by dividing net ~~loss~~income by the weighted average number of shares of common stock ~~outstanding~~ during the ~~period, excluding~~period. The Company applies the two-class method in calculating earnings (losses) per share. Earnings and losses are shared pro rata between the two classes of shares. The calculation of diluted income (loss) per share of common stock ~~previously subject to forfeiture. Weighted average shares were reduced for~~does not consider the effect of ~~an aggregate of 750,000 Class B common stock that were previously subject to forfeiture if~~ the ~~over-allotment option was not exercised by~~warrants issued in connection with the ~~underwriters. As of September 30, 2021, we did not have any dilutive securities~~(i) Public Offering and ~~other contracts that could, potentially,~~(ii) Private Placement, since their inclusion would be ~~exercised or converted into common stock and then share in~~anti-dilutive under the ~~earnings of the Company.~~two-class method. As a result, diluted ~~loss~~net income (loss) per ordinary share is the same as basic ~~loss~~earnings (losses) per ordinary share for the ~~period~~periods presented. The warrants are exercisable to purchase 11,500,000 Class A common stock in the aggregate.

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net- cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

Recent Accounting ~~Pronouncements~~Standards

~~Our management~~Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the ~~accompanying~~Company’s unaudited condensed financial statements.

JOBS ACT

On April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, our unaudited condensed financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions we may not be required to, among other things: (1) provide an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act; (2) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act; (3) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the condensed financial statements (auditor discussion and analysis); and (4) disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee

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compensation. These exemptions will apply for a period of five years following the completion of our IPO or until we are no longer an “emerging growth company,” whichever is earlier.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the fiscal quarter ended September 30, ~~2021.~~2023. Based on this evaluation, our principal executive officer and principal financial and accounting officer have concluded that during the period covered by this Quarterly Report, our disclosure controls and procedures were not effective atdue to the material weaknesses described below.
Following the filing of our Quarterly Report on Form 10-Q for the period ending June 30, 2022, we identified certain clerical errors in the EDGAR version of our unaudited condensed financial statements filed with the SEC. These errors were remedied by restating the June 30, 2022 Form 10-Q. As part of such process, management concluded that a material weakness in internal control over financial reporting existed related to EDGAR document preparation and ineffective review controls over that process.
In connection with the review of the Quarterly Report on Form 10-Q for the period ending March 31, 2023, it was determined that a related party expense was recorded incorrectly. After an internal review of the procedures that resulted in this error, management concluded that a material weakness in internal control over financial reporting existed related to ineffective review and reconciliation of such expenses. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable ~~assurance level and, accordingly, provided reasonable assurance~~possibility that a material misstatement of the Company’s annual or interim unaudited condensed financial statements will not be prevented or detected on a timely basis.
In October 2023, the Company made payments on three separate invoices which payments were later determined by the Company to have been made in error. Two of the payments were later recovered from the vendors, but it is unlikely that the ~~information required~~third payment will be recovered. The Company’s management has conducted a thorough investigation related to ~~be disclosed by us~~these events and has concluded there was a material weakness in ~~reports filed under~~its internal control over financial reporting related to the ~~Exchange Act is recorded, processed, summarized~~Company’s review and ~~reported within the time periods specified in the SEC’s rules and forms.~~approval of cash disbursements.

1831

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To address this material weakness management has devoted, and plans to continue to devote, significant effort and resources to the remediation and improvement of its system for verification of which invoices to pay. The Company’s management has conducted a thorough investigation related to these events and has concluded there was a material weakness in its internal control over financial reporting related to the Company’s review and approval of cash disbursements.

●

The Company implemented additional controls related to vendor verification and will introduce mandatory cybersecurity training.

●

The Company implemented a list of specific points to validate before payments are released, requiring evidence of validation by approvers.

As the Company has recently implemented the above controls, the Company will require additional time to ensure that the control will operate effectively to address the Company’s material weakness.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended on September 30, ~~2021~~2023 covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

In light of the material weakness described above, we have enhanced our processes to reconcile payments being made to outstanding payables and to confirm that payments made were required under contractual commitments. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.

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PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None.

Item 1A. Risk Factors.
Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our ~~final prospectus~~Annual Report on Form 10-K for the ~~Initial Public Offering~~year ended December 31, 20222 filed with the ~~SEC on October 20, 2021.~~SEC. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. As of the date of this Quarterly Report, there have been no material changes to the risk factors disclosed in our final prospectus of our Initial Public Offering filed with the SEC.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
(a)
Unregistered Sales of Equity Securities
On March 18, 2021, we issued 5,750,000 Founder Shares to the Sponsor for an aggregate purchase price of $25,000, or approximately $0.004 per share, pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.None.
(b)
Use of Proceeds from the Public Offering
On October 25, 2021, we consummated our Initial Public Offering of 23,000,000 units generating gross proceeds to the Company of $230,000,000. Of the gross proceeds received from the Initial Public Offering and the Private Placement Warrants, $234,600,000 was placed in a Trust Account. We paid a total of $4,600,000 in underwriting discounts and commissions and $475,558 for other costs and expenses related to the Initial Public Offering. In addition, the underwriters agreed to defer $8,050,000 in underwriting discounts and commission.
The Company entered into fee waiver agreements with KeyBanc Capital Markets Inc. and UBS Securities LLC on August 7, 2023 and August 11, 2023, respectively. Eighty percent (80%), or $6,440,000 in the aggregate, of the deferred underwriting fees have been waived, leaving $1,610,000 of deferred underwriting fees payable to EXOS Securities LLC upon closing pursuant to the Business Combination Agreement. The Company recorded a reduction of $6,440,000 of deferred underwriting fees payable and a gain on forfeiture of deferred underwriting compensation payable in the period ending September 30, 2023. Although the UBS Securities LLC waiver of $6,037,500 relates only to the business combination that may be consummated pursuant to the Business Combination Agreement with Baird Medical, the Company believes that there is only a remote possibility that the Company could consummate another business combination if the Business Combination Agreement with Baird Medical were to be terminated for any reason.
In connection with the votes to extend the date by which ExcelFin must complete its initial business combination from April 25, 2023 to April 25, 2024, the holders of 20,798,467 shares of Class A Common Stock (representing 90% of the shares of Class A Common Stock outstanding) properly exercised their rights to redeem their shares for cash. In connection with those redemptions, approximately $217.0 million was withdrawn from the trust account to fund such redemptions, leaving a balance of approximately $23.5 million.
(c)
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
None.

Item 3. Defaults Upon Senior Securities
None.

Item 4. Mine Safety Disclosures
Not Applicable

Item 5. Other Information
~~None.~~

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Item 6. Exhibits
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.
No.

Description of Exhibit
31.1*

Certification of Principal Executive Officer ~~Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002~~
31.2*
~~Certification of~~and Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**

Certification of Principal Executive Officer ~~Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002~~
32.2*
~~Certification of~~and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*

Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*

Inline XBRL Taxonomy Extension Schema Document
101.CAL*

Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*

Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*

Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*

Inline XBRL Taxonomy Extension Presentation Linkbase Document
104

The cover page for the Company’s Quarterly Report on Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101.
*
Filed herewith.
**
Furnished herewith

2134

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SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

EXCELFIN ACQUISITION CORP.

Date: ~~December 6, 2021~~November 20, 2023
/s/ ~~Logan Allin~~Joe Ragan

Name:
~~Logan Allin~~Joe Ragan

Title:
Chief Executive Officer

& Chief Financial Officer

2235


	September 30, 2021
ASSETS
Deferred offering costs	$	439,296
Total Assets	$	439,296

LIABILITIES AND STOCKHOLDER'S DEFICIT
Current Liabilities:
Accrued offering costs	$	285,000
Accrued formation costs		5,000
Advances from related party		54,446
Note payable– Sponsor		300,000
Total Current Liabilities		644,446

Commitments and contingencies (Note 6)

Stockholder’s Deficit:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding		—
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; NaN issued and outstanding		—
Class B common stock, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 shares issued and outstanding ⁽¹⁾		575
Additional paid-in capital		24,425
Accumulated deficit		(230,150)
Total Stockholder's Deficit		(205,150)
Total Liabilities and Stockholder’s Deficit	$	439,296



			For the
			Period From
			March 15, 2021
	For the		(Inception)
	Three Months Ended		Through
	September 30,		September 30,
	2021		2021
Formation and operating costs	$	112,530	$	230,150

Net loss	$	(112,530)	$	(230,150)

Weighted average shares outstanding, basic and diluted ⁽¹⁾		5,000,000		5,000,000

Basic and diluted net loss per common share	$	(0.02)	$	(0.05)


	Class B			Additional
	Common Stock			Paid-In		Accumulated			Stockholders’
	Shares	Amount		Capital		Deficit			Deficit
Balance as of January 1, 2023	5,750,000	$	575	$	—	$	(8,806,536)	$	(8,805,961)
Current period remeasurement to redemption value	—		—		—		(1,952,348)		(1,952,348)
Net income (loss)	—		—		—		1,494,391		1,494,391
Balance as of March 31, 2023	5,750,000	$	575	$	—	$	(9,264,493)	$	(9,263,918)
Current period remeasurement to redemption value	—		—		—		(1,046,571)		(1,046,571)
Excise tax on Class A common stock redemption	—		—		—		(1,893,966)		(1,893,966)
Net income (loss)	—		—		—		(2,378,294)		(2,378,294)
Balance as of June 30, 2023	5,750,000	$	575		—	$	(14,583,324)	$	(14,582,749)
Current period remeasurement to redemption value	—		—		—		(482,971)		(482,971)
Gain on forfeiture of deferred underwriting compensation payable	—		—		—		6,440,000		6,440,000
Net income (loss)	—		—		—		(1,699,040)		(1,699,040)
Balance as of September 30, 2023	5,750,000		575		—		(10,325,335)		(10,324,760)


	Class B			Additional							Total
	Common Stock			Paid-in		Stockholder		Accumulated			Stockholder's
	Shares	Amount		Capital		Receivable		Deficit			Deficit
Balance, March 15, 2021 (inception)	0	$	0	$	0	$	0	$	0	$	0

Issuance of Class B common stock to Sponsor(1)	5,750,000		575		24,425		(25,000)		—		—

Net loss	—		—		—		—		(5,000)		(5,000)

Balance, March 18, 2021	5,750,000	$	575	$	24,425	$	(25,000)	$	(5,000)	$	(5,000)

Payment of stockholder receivable	—		—		—		25,000		—		25,000

Net loss	—		—		—		—		(112,620)		(112,620)

Balance, June 30, 2021	5,750,000	$	575	$	24,425	$	—	$	(117,620)	$	(92,620)

Net loss	—		—		—		—		(112,530)		(112,530)

Balance, September 30, 2021	5,750,000	$	575	$	24,425	$	—	$	(230,150)	$	(205,150)


	For the
	Period From
	March 15,
	2021
	(Inception)
	Through
	September 30,
	2021
Cash flows from operating activities
Net loss	$	(230,150)
Adjustments to reconcile net loss to net cash used in operating activities:
Changes in accrued formation and offering costs		5,000
Net cash used in operating activities		(225,150)

Cash flows from financing activities
Proceeds from sponsor note		225,150
Net cash provided from financing activities		225,150

Net change in cash		0
Cash at beginning of period		0
Cash at end of period	$	0

Non-cash financing activities:
Deferred offering costs paid by stockholder receivable	$	25,000
Deferred offering costs paid by Sponsor under promissory note	$	74,850
Deferred offering costs included in accrued offering costs	$	285,000


	For the		For the
	Nine Months		Nine Months
	Ended		Ended
	September 30,		September 30,
	2023		2022
Cash Flows from Operating Activities:
Net loss	$	(2,582,943)	$	(340,902)
Adjustments to reconcile net loss to net cash used in operating activities:
Investment income earned on treasury securities held in Trust Account		(4,559,078)		315,000
Changes in operating assets and liabilities:
Due to related parties		(245,834)		(1,229,250)
Prepaid expenses		364,840		427,340
Income tax payable		(86,626)		—
Tax uncertainties		(114,684)		—
Franchise tax payable		(143,490)		—
Accounts payable and accrued expenses		4,919,042		263,488
Net Cash Used In Operating Activities		(2,448,773)		(564,324)

Cash Flows From Investing Activities:
Withdrawal of trust account funds for taxes		1,418,787		—
Withdrawal of trust funds in relation to redemptions of Class A common stock		189,396,563		—
Net Cash Provided by Investing Activities		190,815,350		—

Cash Flows From Financing Activities:
Proceeds from Working Capital Loan		996,654		—
Payments of offering costs		(15,000)		—
Payments made in relation to redemptions of Class A common stock		(189,396,563)		—
Net Cash Used in Financing Activities		(188,414,909)		—
Net change in cash		(48,332)		(564,324)
Cash at beginning of period		351,432		896,517
Cash at end of year period	$	303,100	$	332,193

Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	1,210,898	$	—

Non-cash financing activities:
Excise tax on Class A common stock redemption	$	1,893,966	$	—
Current period remeasurement to redemption value	$	3,481,890	$	678,587
Gain on forfeiture of deferred underwriting compensation payable	$	6,440,000	$	—


Class A common stock subject to possible redemption – December 31, 2021	$	234,600,000
Remeasurement adjustment of carrying value to redemption value		2,303,730
Class A common stock subject to possible redemption – December 31, 2022		236,903,730
Remeasurement adjustment of carrying value to redemption value		3,481,890
Redemptions and withdrawals		(189,396,563)
Class A common stock subject to possible redemption – September 30, 2023	$	50,989,057


	Nine Months Ended		Nine Months Ended
	September 30,		September 30,
	2023		2022
Class A Common Stock
Numerator: Income (Loss) allocable to Class A Common Stock	$	(1,729,859)		(272,722)
Denominator: Basic and diluted weighted average shares outstanding		11,659,687		23,000,000
Basic and diluted net income (loss) per share, Class A Common Stock		(0.15)		(0.01)

Class B Common Stock
Numerator: Income (Loss) allocable to Class B Common Stock	$	(853,084)		(68,180)
Denominator: Basic and diluted weighted average shares outstanding (1)		5,750,000		5,750,000
Basic and diluted net income (loss) per share, Class B Common Stock		(0.15)		(0.01)


			September 30,		December 31,
Description	Level		2023		2022
Assets:
Investments held in Trust Account		1	$	51,478,893	$	237,735,165



No.		Description of Exhibit
31.1*		Certification of Principal Executive Officer ~~Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002~~
31.2*		~~Certification of~~and Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**		Certification of Principal Executive Officer ~~Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002~~
32.2*		~~Certification of~~and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		The cover page for the Company’s Quarterly Report on Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101.


	EXCELFIN ACQUISITION CORP.

Date: ~~December 6, 2021~~November 20, 2023	/s/ ~~Logan Allin~~Joe Ragan
	Name:	~~Logan Allin~~Joe Ragan
	Title:	Chief Executive Officer




		& Chief Financial Officer