☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Cayman Islands | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Symbol(s) | Name of each exchange on which registered | |||
Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant | ROSEU | Nasdaq Global Market | ||||
Class A ordinary shares, par value $0.0001 per share | ROSE | Nasdaq Global Market | ||||
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share, each at an exercise price of $11.50 per share | ROSEW | Nasdaq Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | |||||||
PART 1 — FINANCIAL INFORMATION | |||||||
Item 1. | 1 | ||||||
1 | |||||||
2 | |||||||
3 | |||||||
4 | |||||||
5 | |||||||
Item 2. | 17 | ||||||
Item 3. | 20 | ||||||
Item 4. | 21 | ||||||
Item 6. | 22 | ||||||
23 | |||||||
March 31, 2022 (Unaudited) | December 31, 2021 | March 31, 2023 (Unaudited) | December 31, 2022 | |||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash | $ | 473,257 | $ | 658,747 | $ | 45,935 | $ | 96,119 | ||||||||
Prepaid expenses and other assets | 412,800 | 369,137 | ||||||||||||||
Prepaid expenses | 14,122 | 104,905 | ||||||||||||||
Due from affiliates | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||||||
Total current assets | 911,057 | 1,052,884 | 85,057 | 226,024 | ||||||||||||
Prepaid expenses-non current assets | 14,122 | 104,905 | ||||||||||||||
NON – CURRENT ASSETS | ||||||||||||||||
Investments held in Trust Account | 146,642,494 | 146,627,729 | 2,883,002 | 148,742,661 | ||||||||||||
Total Non – Current Assets | 2,883,002 | 148,742,661 | ||||||||||||||
TOTAL ASSETS | $ | 147,567,673 | $ | 147,785,518 | $ | 2,968,059 | $ | 148,968,685 | ||||||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDER’S DEFICIT | ||||||||||||||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS’ DEFICIT | LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS’ DEFICIT | |||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Accounts payable and accrued expenses | $ | 103,807 | $ | 51,264 | $ | 343,845 | $ | 223,997 | ||||||||
Total current liabilities | 103,807 | 51,264 | 343,845 | 223,997 | ||||||||||||
LONG TERM LIABILITIES | ||||||||||||||||
Derivative warrant liabilities | 3,576,750 | 6,528,456 | 797,250 | 1,328,750 | ||||||||||||
Deferred underwriting fee payable | 7,187,500 | 7,187,500 | 1,500,000 | 7,187,500 | ||||||||||||
Total long-term liabilities | 2,297,250 | 8,516,250 | ||||||||||||||
Total liabilities | 10,868,057 | 13,767,220 | 2,641,095 | 8,740,247 | ||||||||||||
COMMITMENTS AND CONTINGENCIES | 0 | 0 | ||||||||||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value, 14,375,000 shares at redemption value of $10.20 per share at March 31, 2022 and December 31, 2021 | 146,642,519 | 146,625,000 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 6) | ||||||||||||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value, 256,894 and 14,375,000 shares at redemption value at March 31, 2023 and December 31, 2022, respectively | 2,883,002 | 148,742,661 | ||||||||||||||
SHAREHOLDER’S DEFICIT | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||||||||||
Class A ordinary shares; $0.0001 par value; 200,000,000 shares authorized; 0 shares issued and outstanding (excluding 14,375,000 shares subject to possible redemption) at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||||||||||
Class B ordinary shares; $0.0001 par value; 20,000,000 shares authorized; 5,031,250 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 503 | 503 | ||||||||||||||
SHAREHOLDERS’ DEFICIT | ||||||||||||||||
Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding at March 31, 2023 and December 31, 2022 respectively | — | — | ||||||||||||||
Class A ordinary shares; $0.0001 par value; 200,000,000 shares authorized; 4,000,000 and 0 shares issued and outstanding (excluding 256,894 and 14,375,000 shares subject to possible redemption) at March 31, 2023 and December 31, 2022 | 400 | — | ||||||||||||||
Class B ordinary shares; $0.0001 par value; 20,000,000 shares authorized; 1,031,250 and 5,031,250 shares issued and outstanding at March 31, 2023 and December 31, 2022 respectively | 103 | 503 | ||||||||||||||
Additional paid-in capital | 0 | 0 | — | — | ||||||||||||
Accumulated deficit | (9,943,406 | ) | (12,607,205 | ) | (2,556,541 | ) | (8,514,726 | ) | ||||||||
Total shareholder’s deficit | (9,942,903 | ) | (12,606,702 | ) | ||||||||||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDER’S DEFICIT | $ | 147,567,673 | $ | 147,785,518 | ||||||||||||
Total shareholders’ deficit | (2,556,038 | ) | (8,514,223 | ) | ||||||||||||
LIABILITIES, REDEEMABLE ORDINARY SHARES AND SHAREHOLDERS’ DEFICIT | $ | 2,968,059 | $ | 148,968,685 |
For the Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
OPERATING EXPENSES | ||||||||
General and administrative expenses | $ | 261,708 | $ | 285,168 | ||||
Loss from operations | (261,708 | ) | (285,168 | ) | ||||
Other income: | ||||||||
Earnings on investments held in Trust Account and other interest | 400,820 | 14,780 | ||||||
Recovery of offering costs allocated to warrants | 270,725 | — | ||||||
Change in fair value of warrants | 531,500 | 2,951,706 | ||||||
Total other income | 1,203,045 | 2,966,486 | ||||||
Net income | $ | 941,337 | $ | 2,681,318 | ||||
Weighted average shares outstanding of Class A ordinary shares subject to redemption | 1,825,572 | 14,375,000 | ||||||
Basic and diluted net income per share, Class A ordinary shares subject to redemption | $ | 0.30 | $ | 0.14 | ||||
Weighted average shares outstanding of Class A and Class B ordinary shares not subject to redemption | 5,031,250 | 5,031,250 | ||||||
Basic and diluted net income per share, Class A and Class B ordinary shares not subject to redemption | $ | 0.08 | $ | (0.14 | ) |
OPERATING EXPENSES | ||||
General and administrative expenses | $ | 285,168 | ||
Total operating expenses | 285,168 | |||
OTHER INCOME | ||||
Interest income on investments held in Trust Account and other interest | 14,780 | |||
Change in fair value of warrants | 2,951,706 | |||
Total other income | 2,966,486 | |||
NET INCOME | $ | 2,681,318 | ||
Weighted average shares outstanding of Class A ordinary shares | 14,375,000 | |||
Basic and diluted net income per Class A ordinary shares | $ | 0.14 | ||
Weighted average shares outstanding of Class B ordinary shares | 5,031,250 | |||
Basic and diluted net income per Class B ordinary shares | $ | 0.14 | ||
Class A ordinary shares subject to possible redemption | Class A ordinary shares not subject to possible redemption | Class B ordinary shares | Additional paid-in capital | Accumulated deficit | Total Shareholders’ Deficit | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||
Balance, January 1, 2023 | 14,375,000 | $ | 148,742,661 | $ | — | $ | — | $ | 5,031,250 | $ | 503 | $ | — | $ | (8,514,726 | ) | $ | (8,514,223 | ) | |||||||||||||||||
Redemptions | (14,118,106 | ) | (146,259,586 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Recovery of Deferred Underwriter Commissions | — | — | — | — | — | — | — | 5,416,775 | 5,416,775 | |||||||||||||||||||||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value | — | 399,927 | — | — | — | — | — | (399,927 | ) | (399,927 | ) | |||||||||||||||||||||||||
Reclassification of Class B shares to Class A shares | — | — | 4,000,000 | 400 | (4,000,000 | ) | (400 | ) | — | — | — | |||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 941,337 | 941,337 | |||||||||||||||||||||||||||
Balance, March 31, 2023 | 256,894 | $ | 2,883,002 | $ | 4,000,000 | $ | 400 | $ | 1,031,250 | $ | 103 | $ | — | $ | (2,556,541 | ) | $ | (2,556,038 | ) |
Class A ordinary shares Redeemable | Class B Ordinary shares Non-Redeemable | Additional paid-in capital | Accumulated deficit | Total Shareholders’ Deficit | Class A ordinary shares subject to possible redemption | Class B ordinary shares | Additional paid-in capital | Accumulated deficit | Total Shareholders’ Deficit | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | 14,375,000 | $ | 146,625,000 | 5,031,250 | $ | 503 | $ | 0 | $ | (12,607,205 | ) | $ | (12,606,702 | ) | 14,375,000 | $ | 146,625,000 | 5,031,250 | $ | 503 | $ | — | $ | (12,607,205 | ) | $ | (12,606,702 | ) | ||||||||||||||||||||||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value | — | 17,519 | — | — | (17,519 | ) | (17,519 | ) | — | 17,519 | — | — | — | (17,519 | ) | (17,519 | ) | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 2,681,318 | 2,681,318 | — | — | — | — | — | 2,681,318 | 2,681,318 | ||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 14,375,000 | $ | 146,642,519 | 5,031,250 | $ | 503 | $ | 0 | $ | (9,943,406 | ) | $ | (9,942,903 | ) | 14,375,000 | $ | 146,642,519 | 5,031,250 | $ | 503 | $ | — | $ | (9,943,406 | ) | $ | (9,942,903 | ) | ||||||||||||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||
2023 | 2022 | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income | $ | 2,681,318 | $ | 941,337 | $ | 2,681,318 | ||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||
Interest income on investments held in Trust Account | (14,765 | ) | ||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Earnings on investments held in Trust Account | — | (14,765 | ) | |||||||||
Recovery of offering costs allocated to warrants | (270,725 | ) | — | |||||||||
Change in fair value of warrants | (2,951,706 | ) | (531,500 | ) | (2,951,706 | ) | ||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses and other assets | 47,120 | 90,783 | 47,120 | |||||||||
Accounts payable and accrued expenses | 52,543 | 119,848 | 52,543 | |||||||||
Net cash provided by (used in) operating activities | 349,743 | (185,490 | ) | |||||||||
Net cash used in operating activities | (185,490 | ) | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Cash withdrawn from Trust Account in connection with redemption | 146,259,586 | — | ||||||||||
Reinvestment of dividend income on Trust Account | (399,927 | ) | — | |||||||||
Net cash provided by investing activities | 145,859,659 | — | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Redemption of Class A common stock subject to possible redemption | (146,259,586 | ) | — | |||||||||
Net cash used in financing activities | (146,259,586 | ) | — | |||||||||
NET CHANGE IN CASH | (185,490 | ) | $ | (50,184 | ) | $ | (185,490 | ) | ||||
CASH, BEGINNING OF PERIOD | 658,747 | 96,119 | 658,747 | |||||||||
CASH, END OF PERIOD | $ | 473,257 | $ | 45,935 | $ | 473,257 | ||||||
Supplemental disclosure of noncash activities: | ||||||||||||
Re-measurement of redeemable Class A ordinary shares | $ | 17,519 | ||||||||||
Non-cash investing and financing activities: | ||||||||||||
Reclassification of Class B shares to Class A shares | $ | 400 | $ | — | ||||||||
Impact of the recovery of deferred commission by the underwriters | $ | 5,416,775 | $ | — | ||||||||
Remeasurement of redeemable Class A ordinary shares to redemption value | $ | 399,927 | $ | 17,519 |
Gross proceeds | $ | 143,750,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | (6,842,500 | ) | ||
Class A ordinary shares issuance costs | (10,030,391 | ) | ||
Plus: Accretion of carrying value to redemption value | 19,747,891 | |||
Class A ordinary shares subject to possible redemption as of December 31, 2021 | 146,625,000 | |||
Plus: Remeasurement of Class A ordinary shares to redemption value | 17,519 | |||
Class A ordinary shares subject to possible redemption, as of March 31, 2022 | $ | 146,642,519 |
For the three months ended March 31, 2022 | ||||||||
Basic and diluted net income per share: | Class A Ordinary shares | Class B Ordinary shares | ||||||
Numerator: | ||||||||
Allocation of net income, including accretion of temporary equity | $ | 1,986,162 | $ | 695,156 | ||||
Denominator: | ||||||||
Weighted average shares outstanding | 14,375,000 | 5,031,250 | ||||||
Basic and dilution net income per share | $ | 0.14 | $ | 0.14 |
Net income | $ | 941,337 | ||
Less: Accretion of temporary equity to redemption value | (399,927 | ) | ||
Net income excluding accretion of temporary equity to redemption | $ | 541,410 |
Class A shares subject to redemption | Class A and Class B shares not subject to redemption | Total | ||||||||||
Weighted Average Shares outstanding | 1,825,572 | 5,031,250 | 6,856,822 | |||||||||
Ownership percentage | 27 | % | 73 | % | ||||||||
Total income allocated | $ | 250,623 | $ | 690,714 | $ | 941,337 | ||||||
Less: Accretion allocated based on ownership percentage | (106,477 | ) | (293,450 | ) | (399,927 | ) | ||||||
Plus: Accretion applicable to Class A redeemable shares | 399,927 | — | 399,927 | |||||||||
Total income by class | $ | 544,073 | $ | 397,264 | $ | 941,337 | ||||||
Weighted Average Shares outstanding | 1,825,572 | 5,031,250 | 6,856,822 | |||||||||
Income per share | $ | 0.30 | $ | 0.08 |
Net income | $ | 2,681,318 | ||
Less: Accretion of temporary equity to redemption value | (17,509 | ) | ||
Net income excluding accretion of temporary equity to redemption | $ | 2,663,809 |
Class A shares subject to redemption | Class B shares not subject to redemption | Total | ||||||||||
Weighted Average Shares outstanding | 14,375,000 | 5,031,250 | 19,406,250 | |||||||||
Ownership percentage | 74 | % | 26 | % | ||||||||
Total income allocated | $ | 1,986,161 | $ | 695,157 | $ | 2,681,318 | ||||||
Less: Accretion allocated based on ownership percentage | (12,970 | ) | (4,539 | ) | (17,509 | ) | ||||||
Plus: Accretion applicable to Class A redeemable shares | 17,509 | — | 17,509 | |||||||||
Total income by class | $ | 1,990,700 | $ | 690,618 | $ | 2,681,318 | ||||||
Weighted Average Shares outstanding | 14,375,000 | 5,031,250 | 19,406,250 | |||||||||
Income per share | $ | 0.14 | $ | 0.14 |
• | if, and only if, the last reported sale price (the “closing price”) of our Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading “Description of Securities — Warrants — Public Shareholders’ Warrants — Anti-Dilution Adjustments”) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders. |
Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||
U.S. Money Market Funds | $ | 2,883,002 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Warrant Liability - Public Warrants | $ | 431,250 | $ | — | $ | — | ||||||
Warrant Liability - Private Warrants | $ | — | $ | 366,000 | $ | — |
Description | Level | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
U.S. Treasury Securities | 1 | $ | 146,642,494 | 0 | 0 | |||||||||||
Liabilities: | ||||||||||||||||
Warrant Liability — Public Warrants | 1 | $ | 1,868,750 | 0 | — | |||||||||||
Warrant Liability — Private Warrants | 2 | 0 | $ | 1,708,000 | 0 |
Description | Level | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
U.S. Treasury Securities | 1 | $ | 146,627,729 | 0 | 0 | |||||||||||
Liabilities: | ||||||||||||||||
Warrant Liability — Public Warrants | 1 | $ | 3,521,156 | 0 | ||||||||||||
Warrant Liability — Private Warrants | 3 | 0 | 0 | $ | 3,007,300 |
Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||
U.S. Money Market Funds | $ | 148,742,661 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Warrant Liability - Public Warrants | $ | 718,750 | $ | — | $ | — | ||||||
Warrant Liability - Private Warrants | $ | — | $ | 610,000 | $ | — |
December 31, 2021 | ||||
Stock Price | $ | 9.92 | ||
Exercise Price | $ | 11.50 | ||
Redemption trigger price | $ | 18.00 | ||
Term (years) | 5.79 | |||
Probability of Acquisition | 100.00 | % | ||
Volatility | 8.2 | % | ||
Risk Free Rate | 1.32 | % | ||
Dividend Yield | 0 |
Derivative warrant liabilities at March 29, 2021 (inception) | $ | 0 | ||
Issuance of Private Warrants - Level 3 measurements | 5,843,800 | |||
Change in fair value of derivative warrant liabilities with Level 3 inputs | (2,836,500 | ) | ||
Derivative warrant liabilities at December 31, 2021 with Level 3 inputs | $ | 3,007,300 | ||
Transfer out of level 3 | (3,007,300 | ) | ||
Derivative warrant liabilities at March 31, 2022 with Level 3 inputs | $ | 0 | ||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 6. | Exhibits. |
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
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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. | ||
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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. | ||
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Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
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Certification of 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 Label Linkbase Document. | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104* | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document, which is contained in Exhibit 101). |
* | Filed herewith. |
** | Furnished herewith. |
ROSE HILL ACQUISITION CORPORATION | |||||||||
Date: May | 15, 2023 | By: | /s/ Felipe Canales | ||||||
Name: | Felipe Canales | ||||||||
Title: | |||||||||
(Principal Executive Officer) | |||||||||
Date: May | 15, 2023 | By: | /s/ Marco Simental | ||||||
Name: | Marco Simental | ||||||||
Title: | |||||||||
(Principal Executive Officer) | |||||||||
Date: May | 15, 2023 | By: | /s/ Albert Hill IV | ||||||
Name: | Albert Hill IV | ||||||||
Title: | |||||||||
(Principal Financial and Accounting Officer) | |||||||||
Date: May | 15, 2023 | By: | /s/ Juan Jose Rosas | ||||||
Name: | Juan Jose Rosas | ||||||||
Title: | |||||||||
(Principal Financial and Accounting Officer) |