Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | May 08, 2024 | Jun. 30, 2023 | |
Document Information Line Items | |||
Entity Registrant Name | TRISTAR ACQUISITION I CORP. | ||
Entity Central Index Key | 0001852736 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | true | ||
Entity Emerging Growth Company | true | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 240,810,000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Fin Stmt Error Correction Flag | false | ||
Entity File Number | 001-40905 | ||
Entity Incorporation State Country Code | E9 | ||
Entity Tax Identification Number | 98-1587643 | ||
Entity Address Address Line 1 | 2 Burlington Woods Drive | ||
Entity Address Address Line 2 | Suite 100 | ||
Entity Address City Or Town | Burlington | ||
Entity Address State Or Province | MA | ||
Entity Address Postal Zip Code | 01803 | ||
City Area Code | 781 | ||
Icfr Auditor Attestation Flag | false | ||
Auditor Name | Marcum LLP | ||
Auditor Location | New York, NY | ||
Auditor Firm Id | 688 | ||
Local Phone Number | 640-4446 | ||
Entity Interactive Data Current | Yes | ||
Ordinary Shares And Warrants [Member] | |||
Document Information Line Items | |||
Security 12b Title | Units, each consisting of one Class A Ordinary Share and one-half of one Redeemable Warrant to purchase one Class A Ordinary Share | ||
Trading Symbol | TRIS.U | ||
Security Exchange Name | NYSE | ||
Class A Ordinary Shares [Member] | |||
Document Information Line Items | |||
Entity Common Stock Shares Outstanding | 10,608,802 | ||
Security 12b Title | Class A Ordinary Shares, par value $0.0001 per share | ||
Trading Symbol | TRIS | ||
Security Exchange Name | NYSE | ||
Warrants Exercisable And Ordinary Shares [Member] | |||
Document Information Line Items | |||
Security 12b Title | Redeemable Warrants, each exercisable for one Class A Ordinary Share at an exercise price of $11.50 per share | ||
Trading Symbol | TRIS.WS | ||
Security Exchange Name | NYSE | ||
Class B Ordinary Share [Member] | |||
Document Information Line Items | |||
Entity Common Stock Shares Outstanding | 5,750,000 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash | $ 436,317 | $ 587,546 |
Prepaid expenses | 217,255 | 258,535 |
Total current assets | 653,572 | 846,081 |
Cash and Investments held in trust account | 115,166,848 | 235,933,496 |
TOTAL ASSETS | 115,820,420 | 236,779,577 |
CURRENT LIABILITIES: | ||
Accounts payable | 238,824 | 99,514 |
Accrued expenses | 379,242 | 198,580 |
Total current liabilities | 618,066 | 298,094 |
LONGTERM LIABILITIES: | ||
Promissory notes - related parties | 2,000,000 | 0 |
Derivative warrant liabilities | 376,900 | 565,350 |
Deferred underwriting fee payable | 0 | 10,350,000 |
Total long term liabilities | 2,376,900 | 10,915,350 |
Total liabilities | 2,994,966 | 11,213,444 |
Class A ordinary shares subject to possible redemption, 10,608,802 at $10.86 and 23,000,000 at $10.26 redemption value as of December 31, 2023 and 2022, respectively | 115,164,356 | 235,931,005 |
Shareholders' deficit: | ||
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 3,495,690 | 0 |
Accumulated deficit | (5,835,167) | (10,365,447) |
Total shareholders' deficit | (2,338,902) | (10,364,872) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 115,820,420 | 236,779,577 |
Common Class A [Member] | ||
Shareholders' deficit: | ||
Common Stock, Value | 0 | 0 |
Common Class B [Member] | ||
Shareholders' deficit: | ||
Common Stock, Value | $ 575 | $ 575 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Class A [Member] | ||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares, issued | 0 | 0 |
Common stock, shares, outstanding | 0 | 0 |
Temporary equity shares outstanding | 10,608,802 | 23,000,000 |
Temporary equity, redemption price per share | $ 10.86 | $ 10.26 |
Common Class B [Member] | ||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares, issued | 5,750,000 | 5,750,000 |
Common stock, shares, outstanding | 5,750,000 | 5,750,000 |
STATEMENTS OF INCOME
STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
General and administrative expenses | $ (2,365,310) | $ (996,769) |
Loss from operations | (2,365,310) | (996,769) |
Other income | ||
Interest income | 12,182 | 5,247 |
Interest income - cash held in trust | 8,804,012 | 3,631,005 |
Change in fair value of warrant liability | 188,450 | 9,119,050 |
Forgiveness of deferred underwriting fee payable | 481,275 | 0 |
Total other income | 9,485,919 | 12,755,302 |
Net income | $ 7,120,609 | $ 11,758,533 |
Class A Ordinary Shares [Member] | ||
Other income | ||
Basic and diluted weighted average shares outstanding | 17,364,551 | 23,000,000 |
Basic and diluted net income per share | $ 0.31 | $ 0.41 |
Class B Ordinary Shares [Member] | ||
Other income | ||
Basic and diluted weighted average shares outstanding | 5,750,000 | 5,750,000 |
Basic and diluted net income per share | $ 0.31 | $ 0.41 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($) | Total | Class A Common Shares | Class B Common Shares | Additional Paid-in Capital | Accumulated Deficit |
Balance, shares at Dec. 31, 2021 | 0 | 5,750,000 | |||
Balance, amount at Dec. 31, 2021 | $ (18,492,400) | $ 0 | $ 575 | $ 0 | $ (18,492,975) |
Remeasurement of Class A ordinary shares to redemption amount as of December 31, 2022 | (3,631,005) | 0 | 0 | 0 | (3,631,005) |
Net income | 11,758,533 | $ 0 | $ 0 | 0 | 11,758,533 |
Share based compensation | 0 | ||||
Balance, shares at Dec. 31, 2022 | 0 | 5,750,000 | |||
Balance, amount at Dec. 31, 2022 | (10,364,872) | $ 0 | $ 575 | 0 | (10,365,447) |
Remeasurement of Class A ordinary shares to redemption amount as of December 31, 2022 | (9,554,011) | 0 | 0 | (6,963,682) | (2,590,329) |
Net income | 7,120,609 | 0 | 0 | 0 | 7,120,609 |
Forgiveness of deferred underwriting fee payable | 9,868,725 | 0 | 0 | 9,868,725 | 0 |
Share based compensation | 35,535 | 0 | 0 | 35,535 | 0 |
Prior Sponsor capital contribution | 191,628 | 0 | 0 | 191,628 | 0 |
Initial fair value adjustment of convertible promissory note - related party | 99,976 | 0 | 0 | 99,976 | 0 |
Forgiveness of service administrative fees | 204,516 | 0 | 0 | 204,516 | 0 |
Forgiveness of convertible promissory note - related party | 58,992 | $ 0 | $ 0 | 58,992 | 0 |
Balance, shares at Dec. 31, 2023 | 0 | 5,750,000 | |||
Balance, amount at Dec. 31, 2023 | $ (2,338,902) | $ 0 | $ 575 | $ 3,495,690 | $ (5,835,167) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 7,120,609 | $ 11,758,533 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Change in derivative warrant liabilities | (188,450) | (9,119,050) |
Interest income earned on investment held in Trust Account | (8,804,012) | (3,631,005) |
Forgiveness of deferred underwriting fee payable | (481,275) | 0 |
Service administrative fees | 60,000 | 0 |
Share based compensation | 35,535 | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 41,280 | 308,398 |
Accounts payable | 139,310 | (32,027) |
Accrued expenses | 325,178 | 155,705 |
Net cash used in operating activities | (1,751,825) | (559,446) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash withdrawal from Trust Account | 130,320,660 | 0 |
Cash deposited into Trust Account | (750,000) | 0 |
Net cash provided by investing activities | 129,570,660 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemptions of Class A ordinary shares | (130,320,660) | 0 |
Proceeds from promissory note - related party | 2,000,000 | 0 |
Proceeds from Prior Sponsor | 350,596 | 0 |
Payment of offering costs | 0 | (85,000) |
Net cash used in financing activities | (127,970,064) | (85,000) |
NET DECREASE IN CASH | (151,229) | (644,446) |
CASH BEGINNING OF PERIOD | 587,546 | 1,231,992 |
CASH END OF PERIOD | 436,317 | 587,546 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||
Initial fair value adjustment Prior Sponsor Working Capital Loan Promissory Note | 99,976 | 0 |
Forgiveness of Prior Sponsor Working Capital Loan Promissory Note | 58,992 | 0 |
Forgiveness of administrative support fees | 204,516 | 0 |
Forgiveness of deferred underwriting fee payable allocated to additional paid in capital | 9,868,725 | 0 |
Remeasurement of Class A ordinary shares to redemption amount | $ 9,554,011 | $ 3,631,005 |
Description of Organization and
Description of Organization and Business Operations and Liquidity | 12 Months Ended |
Dec. 31, 2023 | |
Description of Organization and Business Operations and Liquidity | |
Description of Organization and Business Operations and Liquidity | Note 1—Description of Organization and Business Operations and Liquidity Tristar Acquisition I Corp. (the “Company”) is a blank check company incorporated in the Cayman Islands on March 5, 2021. The Company was formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar Business Combination with one or more businesses (a “Business Combination”). The Company is not limited to a particular industry or geographic region 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 December 31, 2023 and December 31, 2022, the Company had not yet commenced any operations. All activity through December 31, 2023 relates to the Company’s formation and the Initial Public Offering (as defined below) and since completion of the IPO, searching for a target with which to consummate a Business Combination and consummating such Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering. The Company has selected December 31 st The Company’s prior sponsor was Tristar Holdings I LLC, a Delaware limited liability company (the “Prior Sponsor”). On July 18, 2023, upon the consummation of the Sponsor Handover (as defined below), Navy Sail International Limited, a British Virgin Islands company (the “Sponsor”), became the new sponsor of the Company. Initial Public Offering The registration statement for the Initial Public Offering was declared effective on October 13, 2021. On October 18, 2021, the Company consummated its initial public offering (the “Initial Public Offering”) of 20,000,000 units (the “Units” and, with respect to the shares of the Company’s Class A ordinary shares, par value $0.0001 per share (the “Class A Ordinary Shares”), included in the Units, the “Public Shares”), at $10.00 per Unit, generating total gross proceeds of $200,000,000 (see Note 3). On November 3, 2021, the underwriters exercised the over-allotment option (“Over-Allotment Option”) and purchased an additional 3,000,000 Units, generating gross proceeds of $30 million (see Note 3). Each Unit consists of one Public Share and one-half of one redeemable warrant (each a “Public Warrant”). Simultaneously with the closing of the Initial Public Offering and exercise of the Over-Allotment Option, the Company consummated the sale of 7,345,000 warrants (the “Private Placement Warrants” and together with the Public Warrants, the “Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to the Prior Sponsor (the “Private Placement”) generating gross proceeds of $7,345,000 (see Note 4). Each whole Warrant entitles the holder to purchase one Class A Ordinary Share at a price of $11.50 per share. Transaction costs amounted to $25,995,754, consisting of $4,600,000 of underwriting fees, $10,350,000 of deferred underwriting fees, $12,546,764 for the fair value of the Founder Shares (as defined in Note 5) attributable to the Anchor Investors (as defined in Note 5), and $1,003,989 of offering costs, partially offset by the reimbursement of $2,505,000 of offering expenses by the underwriters. The Company’s remaining cash after payment of the offering costs was held outside of the Company’s U.S.-based trust account (the “Trust Account”) for working capital purposes. Following the closing of the Initial Public Offering and Over-Allotment Option, an amount of $232,300,000 from the net proceeds of the (i) sale of the Units in the Initial Public Offering , (ii) exercise of the Over-Allotment Option and the sale of the Private Placement Warrants in the Private Placement was placed in the Trust Account and invested only in U.S. government treasury obligations with maturities of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), which invest only in direct U.S. government treasury obligations. To mitigate the risk that the Company might be deemed an investment company for purposes of the Investment Company Act, on November 9, 2023, the Company instructed Continental Stock Transfer & Trust Company (“Continental”), the trustee with respect to the Trust Account, to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in an interest-bearing demand deposit account at a bank, with Continental continuing to act as trustee. As a result, following the liquidation of investments in the Trust Account, the remaining proceeds from the Initial Public Offering, Over-Allotment Option and Private Placement are no longer invested in U.S. government securities or money market funds. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its tax obligations (less up to $100,000 of interest to pay dissolution expenses), the proceeds held in the Trust Account will not be released from the Trust Account until the earlier of: (i) the completion of the initial Business Combination; (ii) the redemption of any Public Shares properly tendered in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (as amended and currently in effect, the “Amended and Restated Memorandum”) to modify the substance or timing of the Company’s obligation to redeem 100% of the Public Shares if the Company does not complete the initial Business Combination within the Combination Period (as defined below) or with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity; and (iii) failure by the Company to complete an initial Business Combination within the Combination Period and the return of the funds held in the Trust Account to the holder of its Public Shares (“Public Shareholders”) as part of the redemption of the Public Shares. If the Company is unable to complete the initial Business Combination, the Public Shareholders may only receive their pro rata portion of the funds in the Trust Account that are available for distribution to Public Shareholders, and the Warrants will expire worthless. The Company will provide its Public Shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a shareholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company, in its sole discretion. The Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount held in the Trust Account ($10.86 per share as of December 31, 2023), calculated as of two business days prior to the completion of a Business Combination, including any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations (less up to $100,000 of interest to pay dissolution expenses). There will be no redemption rights upon the completion of a Business Combination with respect to the Warrants. The Class A Ordinary Shares are recorded at redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480, “ Distinguishing Liabilities from Equity” The Company will proceed with a Business Combination if a majority of the shares voted are voted in favor of Business Combination. If a shareholder vote is not required under applicable law or stock exchange listing requirements and the Company does not decide to hold a shareholder vote for business or other reasons, the Company will, pursuant to its Amended and Restated Memorandum as then in effect, conduct the redemptions pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the Prior Sponsor, Sponsor, Prior Officers (as defined below), Prior Directors (as defined below), Anchor Investors, and the Company’s current management team (the “Management”) have agreed to vote any Founder Shares held by them, and any Public Shares purchased in or after the Initial Public Offering in favor of approving a Business Combination. Additionally, each Public Shareholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction or whether they were a Public Shareholder on the record date for the general meeting held to approve the proposed transaction. Notwithstanding the foregoing, if the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Memorandum provides that a Public Shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder 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 Company’s prior written consent. The Prior Sponsor, Sponsor, Prior Officers, Prior Directors, Anchor Investors, and the Management, and their respective designees and affiliates have agreed to (i) waive their redemption rights with respect to any Founder Shares they hold in connection with the completion of an initial Business Combination, (ii) waive their redemption rights with respect to any Founder Shares and Public Shares they hold in connection with a shareholder vote to approve an amendment to the Amended and Restated Memorandum to modify the substance or timing of the Company's obligation to redeem 100% of the Public Shares if the Company has not consummated an initial Business Combination within the Combination Period or with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity and (iii) waive their rights to liquidating distributions from the Trust Account with respect to any Founder Shares they hold if the Company fails to complete an initial Business Combination within the Combination Period. However, if such persons 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 Company will have until October 18, 2024 if it utilizes the full Extension (as defined below) to complete a Business Combination (the “Combination Period”). If the Company is unable to complete a Business Combination within 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 (which interest shall be net of taxes payable and 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 Shareholders’ rights as shareholders (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 and its board of directors (the “Board”), liquidate and dissolve, subject, in each case, to the Company's obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. In order to protect the amounts held in the Trust Account, the Prior 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) $10.10 per Public Share or (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account if less than $10.10 per Public Share due to reductions in the value of the trust assets, in each case net of the interest that may be withdrawn to pay the Company’s tax obligations, provided that such liability will not apply to any claims by a third-party or prospective target business that executed a waiver of any and all rights to seek access to the Trust Account (whether or not such waiver is enforceable) nor will it apply 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 Prior 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 (other than the Company’s independent registered public accounting firm), prospective target businesses or 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. Extension of the Combination Period The Company initially had until July 18, 2023, 21 months from the closing of the Initial Public Offering, to consummate its initial Business Combination. On June 18, 2023, the Company held an extraordinary general meeting of shareholders, at which its shareholders approved, among other things, an amendment to the Amended and Restated Memorandum (the “Memorandum Amendment”) to (i) extend the date by which it has to complete a Business Combination from July 18, 2023 to October 18, 2023, and without another shareholder vote, to further extend the such period for an additional one (1) month as needed, on a month-to-month basis, up to twelve (12) times, until October 18, 2024 (the “Extension”), and (ii) remove the limitation that the Company may not redeem Public Shares to the extent that such redemption would result in the Company having net tangible assets (as determined in accordance with Rule 3a51-1(g)(1) of the Exchange Act), of less than $5,000,001 (the “Redemption Limitation”) in order to allow the Company to redeem Public Shares irrespective of whether such redemption would exceed the Redemption Limitation. In connection with the Memorandum Amendment, on July 18, 2023, shareholders holding 12,391,198 Public Shares exercised their right to redeem such shares for a pro rata portion of the funds in the Trust Account. As a result, $130,320,660 (approximately $10.52 per share) was removed from the Trust Account to pay such holders. Following redemptions, the Company had 10,608,802 Public Shares outstanding. Sponsor Handover On July 18, 2023, the Company entered into a securities transfer agreement (the “Sponsor Handover Securities Transfer Agreement”) by and among the Prior Sponsor and the Sponsor and its designees (the “Sponsor Purchasers”), whereby the Prior Sponsor agreed to transfer to the Sponsor Purchasers 3,046,634 of the Company’s Class B ordinary shares, par value $0.0001 per share (the “Class B Ordinary Shares”) and 4,961,250 Private Placement Warrants, which the Prior Sponsor purchased in connection with the Initial Public Offering and Private Placement. In addition, all other holders of Class B Ordinary Shares at July 18, 2023 (together with the Prior Sponsor, the “Sponsor Handover Sellers”) transferred an aggregate of 1,380,866 of their Class B Ordinary Shares to Chunyi (Charlie) Hao, President, Chief Financial Officer and Chairman of the Board of Directors, pursuant to founder share transfer agreements executed by each respective holder on July 18, 2023 (the “Sponsor Handover Share Transfer Agreements” and collectively with the Sponsor Handover Securities Transfer Agreement, such transfers, the agreements executed in connection therewith (including the transactions contemplated therein) and the Management Changes (as defined below), the “Sponsor Handover”). After the closing of the Sponsor Handover on July 18, 2023, the Sponsor Handover Transferors held an aggregate of 1,322,500 Class B Ordinary Shares, and the Prior Sponsor held 2,383,750 Private Placement Warrants. In connection with the Sponsor Handover Securities Transfer Agreement, any accounts payable and accrued expenses in excess of $200,000 that were incurred by the Company prior to the Sponsor Handover was the responsibility of the Prior Sponsor to settle (the “Company Liability”). Following the transaction, any remaining liabilities incurred by the Company prior to the Sponsor Handover and any liabilities incurred post-the Sponsor Handover, continued as a liability to the Company. The Company incurred $191,628 in excess of the $200,000 Company Liability. The Prior Sponsor paid $191,628 for outstanding accounts payable and accrued expenses, which was recorded as additional paid-in capital for the year ended December 31, 2023. In connection with the Sponsor Handover, the Company, the Prior Officers, Prior Directors, and the Sponsor Purchasers entered into additional agreements whereby: (i) the Sponsor Purchasers each signed a joinder agreement (the “Joinder Agreement”) to become a party to the Letter Agreement (the “Insider Agreement”) and the Registration Rights Agreement (“Registration Rights Agreement”), both dated October 13, 2021 and entered into in connection with the Initial Public Offering, by and among the Company, the Prior Sponsor and certain equity holders of the Company; and (ii) the Insider Agreement was amended by the parties thereto to allow for the Transfer (the “Letter Agreement Amendment”). In addition, upon the closing of the Sponsor Holdover, the underwriters of the Initial Public Offering waived their respective entitlement to the payment of any deferred underwriting fees to be paid under the terms of Section 2(c) and Section 5(bb) of the Underwriting Agreement dated October 13, 2021 (the “Underwriting Agreement”). Additionally, the Company terminated the Administrative Support Agreement, dated October 13, 2021, with the Prior Sponsor (the “Administrative Support Agreement”) entered into in connection with the Initial Public Offering (see Note 5). As part of the Sponsor Handover, the Company also changed its management (the “Management Changes”) and the Board as follows: (i) effective as of July 18, 2023, Chunyi (Charlie) Hao replaced William M. Mounger as Chief Executive Officer and director, and Michael H. Liu replaced Timothy Allen Dawson as Chief Financial Officer, and Mr. Liu was also appointed as a director of the Board; (ii) effective as of July 18, 2023, Cathy Martine-Dolecki (collectively with William M. Mounger and Timothy Allen Dawson, the “Prior Officers”) tendered her resignation as Chief Operating Officer and director and Robert Willis tendered his resignation as director; and (iii) effective August 14, 2023, Greg Boyd, David Jones, David Barksdale, Alex Parker and Steven Rogers (collectively with William M. Mounger, Cathy Martine-Dolecki and Robert Willis, the “Prior Directors”) tendered their resignations as directors. We then appointed each of Xinyue (Jasmine) Geffner, Stephen Markscheid and Wang Chiu (Tommy) Wong to fill the vacancies left by departing Messrs. Boyd, Jones, Barksdale, Parker and Rogers. Additionally, effective on September 13, 2023, the Board appointed (x) Chunyi (Charlie) Hao as the President and Chairman of the Board, following his resignation as Chief Executive Officer, (y) Xiaoma (Sherman) Lu as the Company’s Chief Executive Officer to fill in the vacancy left by Chunyi (Charlie) Hao as Chief Executive Officer, and (z) Ri (Richard) Yuan as its Chief Investment Officer. On April 24, 2024, Michael H. Liu notified the Board of his resignation as Chief Financial Officer and director of the Company, effective on April 23, 2024. On April 29, 2024, the Board appointed (i) Chunyi (Charlie) Hao, the Company’s President and Chairman of the Board, as the Chief Financial Officer of the Company, effective on April 29, 2024, and (ii) Xiaoma (Sherman) Lu, the Company’s Chief Executive Officer, as a director of the Company, to fill the vacancy left by Mr. Liu’s departure, effective on April 29, 2024. As part of the Sponsor Handover, the Prior Sponsor paid for certain expenses incurred by the Company as part of the Sponsor Handover. The Prior Sponsor paid a total of $191,628 of expenses incurred.The Prior Sponsor payments are considered capital contributions to the Company and is included as additional paid-in capital for the year ended December 31, 2023. Business Combination Agreement On November 12, 2023, the Company entered into the Business Combination Agreement (“Helport Business Combination Agreement”) with Helport AI Limited, a British Virgin Islands business company (“Pubco”), Merger I Limited, a British Virgin Islands business company and a wholly-owned subsidiary of Pubco (“the First Merger Sub”), Merger II Limited, an exempted company incorporated with limited liability in the Cayman Islands and a wholly-owned subsidiary of Pubco (“the Second Merger Sub”), Helport Limited, a British Virgin Islands business company (“Helport”), the Sponsor and Extra Technology Limited, a BVI business company, in the capacity as the representative of the Helport Shareholders (“the Seller Representative”). Pursuant to the Helport Business Combination Agreement, subject to the terms and conditions set forth therein, at the closing of the Helport Business Combination (the “Closing”), (i) the First Merger Sub will merge with and into Helport (the “First Merger”), with Helport surviving the First Merger as a wholly-owned subsidiary of Pubco and the outstanding securities of Helport being converted into the right to receive securities of Pubco; and (b) following the First Merger, the Second Merger Sub will merge with and into the Company (the “Second Merger.” and together with the First Merger, the “Mergers”), with the Company surviving the Second Merger as a wholly-owned subsidiary of Pubco and the Company’s outstanding securities being converted into the right to receive securities of Pubco. Capitalized terms not defined but otherwise used in the following description have the meanings ascribed to them in the Helport Business Combination Agreement. On December 18, 2023, the Company entered into the Helport Business Combination Agreement Amendment with Pubco, the First Merger Sub, the Second Merger Sub, Helport, the Sponsor and the Seller Representative, which amended the Helport Business Combination Agreement to (i) remove the Earnout and the related Earnout Escrow and (ii) reduce the Aggregate Merger Consideration Amount from three hundred and fifty million U.S. dollars ($350,000,000) to three hundred and thirty-five million U.S. dollars ($335,000,000). Consideration Under the Helport Business Combination Agreement, the Aggregate Merger Consideration Amount to be paid to the shareholders of Helport is $335,000,000, pursuant to the Helport Business Combination Agreement Amendment, subject to net debt and working capital adjustments, and will be paid entirely in newly issued ordinary shares of Pubco, with each share valued at the per share price. On the Closing Date immediately prior to the First Merger Effective Time, each Company Preferred Share (authorized but not issued as of December 31, 2023), if any, that is issued and outstanding immediately prior to the First Merger Effective Time shall be canceled in exchange for the right to receive a number of the ordinary shares, par value $1.00 each, of Helport, upon and after completion of the Reorganization (as defined below) (the “Helport Ordinary Shares”), at the then effective conversion rate (the “Conversion”). As a result of the Mergers, (a) each ordinary share of Helport that is issued and outstanding immediately prior to the First Merger Effective Time and after the Conversion shall be cancelled and converted into the right to receive 100% of such number of ordinary shares of Pubco equal to the Exchange Ratio; (b) each of the convertible securities of Helport, to the extent then outstanding and unexercised immediately prior to the First Merger Effective Time, shall be cancelled, retired and terminated; (c) each of the Company’s Ordinary Shares that is issued and outstanding immediately prior to the Effective Time shall be cancelled and converted automatically into the right to receive one Pubco ordinary share; and (d) each of the Company’s outstanding Public Warrants and Private Placement Warrant shall be converted into one Pubco Public Warrant or one Pubco Private Warrant, respectively. Helport Reorganization Helport Pte. Ltd., a Singapore exempt private company limited by shares (“Helport Pte”), has entered into certain agreements (together with all agreements, deeds, instruments or other documents as may be necessary or appropriate, the “Reorganization Documents”) with Helport Holdings Limited, certain minority shareholders of Helport, Helport, Helport Group Limited, Helport Pte, and Helport AI, Inc, to implement and effect a reorganization pursuant to the terms and conditions of the Reorganization Documents (the “Reorganization”). The Reorganization Documents were executed throughout the period from October 2023 to December 2023, and on December 22, 2023, the Reorganization was completed. Covenants of the Parties Each party agreed in the Helport Business Combination Agreement to use its commercially reasonable efforts to effect the Closing. The Helport Business Combination Agreement contains certain customary covenants by each of the parties during the period between the signing of the Helport Business Combination Agreement and the earlier of the Closing or the termination of the Helport Business Combination Agreement in accordance with its terms, including covenants regarding: (1) the provision of access to their properties, books and personnel; (2) the operation of their respective businesses in the ordinary course of business (subject to certain exceptions); (3) provision of financial statements of Target Companies; (4) the Company’s public filings; (5) “no shop” obligations; (6) no insider trading; (7) notifications of certain breaches, consent requirements or other matters; (8) efforts to consummate the Closing and obtain third-party and regulatory approvals and efforts to cause Pubco to maintain its status as a “foreign private issuer” under Rule 3b-4 of the Exchange Act; (9) further assurances; (10) public announcements; (11) confidentiality; (12) indemnification of directors and officers and tail insurance; (13) use of trust proceeds after the Closing; (14) efforts to support a private placement or backstop arrangements, if sought; (15) intended tax treatment of the Mergers and (16) use of Trust Account proceeds. Helport also agreed to cause certain of its shareholders to each enter into a Key Seller Lock-Up Agreement (as defined below). In addition, the parties agreed to take all necessary actions to cause Pubco’s board of directors immediately after the Closing to consist of five directors, including: (i) two persons who are designated by the Company prior to the Closing as independent directors; and (ii) three persons who are designated by Helport prior to the Closing. The Helport Business Combination Agreement and the consummation of the Helport Business Combination require the approval of both the Company’s shareholders and the holders of Helport Ordinary Shares as of the Closing (each, a “Helport Shareholder”). The Company and Pubco also agreed to jointly prepare, and Pubco shall file with the SEC, the Helport Registration Statement in connection with the registration under the Securities Act of the issuance of securities of Pubco to the holders of (i) the Company’s Ordinary Shares and Warrants and (i) Helport’s ordinary shares and warrants, and containing a proxy statement/prospectus for the purpose of soliciting proxies from the Company’s shareholders for the matters relating to the Helport Business Combination to be acted on at the extraordinary general meeting of the Company’s shareholders and providing such shareholders an opportunity to participate in the redemption of their Public Shares upon the Closing (the “Redemption”). Helport agreed to call a meeting of its shareholders or cause a written resolution to be passed, as promptly as practicable after the Helport Registration Statement has become effective, in order to obtain the approval of Helport Shareholders for the approval of the Helport Business Combination Agreement and the Helport Business Combination, and Helport agreed to use its commercially reasonable efforts to solicit from the Helport Shareholders proxies prior to such special meeting or written resolution, and to take all other actions necessary or advisable to secure the approval of the Helport Shareholders. Conditions to Closing The obligations of the parties to consummate the Helport Business Combination are subject to various conditions, including the following mutual conditions of the parties, unless waived: (1) the approval of the Helport Business Combination Agreement and the Helport Business Combination and related matters by the requisite vote of the Company and the Helport shareholders; (2) obtaining material regulatory approvals; (3) no law or order preventing or prohibiting the Helport Business Combination; (4) the Company or Pubco shall have consolidated net tangible assets of at least $5,000,001 (as calculated and determined in accordance with Rule 3a51-1(g)(1) of the Exchange Act) either immediately prior to the Closing (after giving effect to the Redemption) or upon the Closing after giving effect to the Mergers (including the Redemption), or Pubco otherwise is exempt from the provisions of Rule 419 promulgated under the Exchange Act (i.e. one of several exclusions from the “penny stock” rules of the SEC applies and the Company relies on another exclusion); (5) amendment by the shareholders of Pubco of Pubco’s memorandum and articles of association; (6) the effectiveness of the Helport Registration Statement; (7) appointment of the post-closing directors of Pubco; and (8) Nasdaq Stock Market LLC or NYSE listing requirements, as applicable, having been fulfilled. In addition, unless waived by Helport, the obligations of Helport, Pubco, the First Merger Sub and the Second Merger Sub to consummate the Helport Business Combination are subject to the satisfaction of the following Closing conditions, in addition to customary certificates and other closing deliveries: (1) the representations and warranties of the Company being true and correct on and as of the Closing (subject to Material Adverse Effect); (2) the Company having performed in all material respects its obligations and complied in all material respects with its covenants and agreements under the Helport Business Combination Agreement required to be performed or complied with by us on or prior the date of the Closing; (3) absence of any Material Adverse Effect with respect to the Company since the date of the Helport Business Combination Agreement which is continuing and uncured; (4) receipt by the Company and Pubco of the First Amendment to Registration Rights Agreement (as defined below); (5) each of the Sellers shall have received from Pubco a registration rights agreement covering the merger consideration shares received by the Sellers |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies | |
Significant Accounting Policies | Note 2—Significant Accounting Policies Basis of Presentation The accompanying financial statements are presented in U.S. dollars, in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of 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 auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder 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 an emerging growth 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 financial statements with another public company which is neither an emerging growth company nor an emerging growth company that 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 accompanying financial statements in conformity with GAAP requires the 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 financial statements and the reported amounts of expenses during the reporting period. 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 accompanying financial statements, 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 from those estimates. Cash and 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 equivalents as of December 31, 2023 and December 31, 2022. Cash and Investments Held in Trust Account As of December 31, 2023 the assets held in Trust Account were held in an interest-bearing demand deposit account. As of December 31, 2022, the assets held in Trust Account were held in money market funds, which invest in U.S. Treasury securities. Until November 9, 2023, the Company’s portfolio of investments held in the Trust Account was 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, or investments in money market funds that invest in U.S. government securities, or a combination thereof. The Company classifies its U.S. Treasury securities as trading securities in accordance with FASB ASC Topic 320 “Investments—Debt and Equity Securities.” To mitigate the risk that the Company might be deemed an investment company for purposes of the Investment Company Act, on November 9, 2023, the Company instructed Continental, the trustee with respect to the Trust Account, to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in an interest-bearing demand deposit account at a bank, with Continental continuing to act as trustee. As a result, following the liquidation of investments in the Trust Account, the remaining proceeds from the Initial Public Offering, Over-Allotment Option and Private Placement are no longer invested in U.S. government securities or money market funds. Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its Ordinary Shares subject to possible redemption in accordance with the guidance in ASC 480. 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 not solely within the Company’s control) are classified as temporary equity. At all other times, Ordinary Shares are classified as shareholders’ equity. The Ordinary Shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Class A Ordinary Shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable Class A Ordinary Shares are affected by charges against additional paid-in capital totaling $9,554,011 for the year ended December 31, 2023. For the year ended December 31, 2022, the increases in the carrying out of redeemable Class A Ordinary Shares are affected by charges against accumulated deficit totaling $3,361,005. The Class A Ordinary Shares subject to possible redemption reflected on the accompanying balance sheets as of December 31, 2023 and December 31, 2022 are reconciled on the following table: Gross proceeds from Initial Public Offering, including sale of the Over-Allotment Option $ 230,000,000 Less: Fair value of Public Warrants at issuance (10,695,000 ) Offering costs allocated to Class A Ordinary Shares subject to possible redemption, net of reimbursement from underwriters (24,329,399 ) Plus: Initial accretion on Class A Ordinary Shares subject to possible redemption amount 37,324,399 Class A Ordinary Shares subject to possible redemption, December 31, 2021 232,300,000 Plus: Remeasurement on Class A Ordinary Shares subject to possible redemption amount 3,631,005 Class A Ordinary Shares subject to possible redemption, December 31, 2022 235,931,005 Less: Redemption of Class A Ordinary Shares (130,320,660 ) Plus: Accretion on Class A Ordinary Shares subject to possible redemption amount 9,554,011 Class A Ordinary Shares subject to possible redemption, December 31, 2023 $ 115,164,356 As of December 31, 2023 and December 31, 2022, 10,608,802 and 23,000,000, respectively, Class A Ordinary Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s accompanying balance sheets. Income Taxes The Company accounts for income taxes under FASB ASC Topic 740, “ Income Taxes ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position 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. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the accompanying financial statements. The Company is subject to income tax examinations by major taxing authorities since inception. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2023 and December 31, 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. There are no taxes in the Cayman Islands and accordingly income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. Share-based Compensation The Company adopted FASB ASC Topic 718, “Compensation—Stock Compensation” (“ASC 718”)”, guidance to account for its share-based compensation. It defines a fair value-based method of accounting for an employee share option or similar equity instrument. The Company recognizes all forms of share-based payments, including share option grants, warrants and restricted share grants, at their fair value on the grant date, which are based on the estimated number of awards that are ultimately expected to vest. Share-based payments, excluding restricted shares, are valued using a Black-Scholes option pricing model. Grants of share-based payment awards issued to nonemployees for services rendered have been recorded at the fair value of the share-based payment, which is the more readily determinable value. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the termination of service. Share-based compensation expenses are included in costs and operating expenses depending on the nature of the services provided in the statements of operations. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and Management believes the Company is not exposed to significant risks on such account. 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 FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the accompanying statements of operations. Derivative assets and liabilities are classified in the accompanying balance sheets 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. Warrant Liabilities The Company evaluated the Public Warrants and Private Placement Warrants, in accordance with FASB ASC Topic 815-40, “Derivatives and Hedging - Contracts in Entity’s Own Equity” (“ASC 815-40”), and concluded that a provision in the Warrant Agreement, dated October 13, 2021, by and between the Company and Continental (the “Warrant Agreement”), related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815-40, the Warrants are recorded as derivative liabilities on the accompanying balance sheets and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with FASB ASC Topic 820, “Fair Value Measurement” (“ASC 820”), with changes in fair value recognized in the statement of operations in the period of change. The Private Placement Warrants were initially measured at fair value using a modified Black-Scholes Option Pricing Model. As the transfer of Private Placement Warrants to anyone who is not permitted transferee would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant. The fair value of the Public and Private Placement Warrants as of December 31, 2023 and 2022 is based on observable listed prices. The Private Placement Warrants have the same value as the Public Warrants since they are also subject to the make-whole provisions, per the warrant agreement. Fair Value of Financial Instruments ASC 820 establishes a fair value hierarchy that prioritizes and ranks the level of observability of inputs used to measure investments at fair value. The observability of inputs is impacted by a number of factors, including the type of investment, characteristics specific to the investment, market conditions and other factors. 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). Investments with readily available quoted prices or for which fair value can be measured from quoted prices in active markets will typically have a higher degree of input observability and a lesser degree of judgment applied in determining fair value. The carrying amounts reflected in the accompanying balance sheets for cash, prepaid expenses, due from related party, investments held in trust account, accounts payable, and accrued offering costs and expenses approximate fair value due to their short-term nature. The three levels of the fair value hierarchy under ASC 820 are as follows: · Level 1—Quoted prices (unadjusted) in active markets for identical investments at the measurement date are used. · Level 2—Pricing inputs are other than quoted prices included within Level 1 that are observable for the investment, either directly or indirectly. Level 2 pricing inputs include quoted prices for similar investments in active markets, quoted prices for identical or similar investments in markets that are not active, inputs other than quoted prices that are observable for the investment, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3—Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment. The inputs used in determination of fair value require significant judgment and estimation. In some cases, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the investment is categorized in its entirety is determined based on the lowest level input that is significant to the investment. Assessing the significance of a particular input to the valuation of an investment in its entirety requires judgment and considers factors specific to the investment. The categorization of an investment within the hierarchy is based upon the pricing transparency of the investment and does not necessarily correspond to the perceived risk of that investment. See Note 9 for additional information on assets and liabilities measured at fair value. Convertible Promissory Note – Prior Sponsor Working Capital Loan The Company accounts for the convertible promissory notes under ASC 815. The Company has made the election under ASC 815-15-25 to account for the notes under the fair value option. Using the fair value option, the convertible promissory notes are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Differences between the face value of the notes and fair value at issuance are recognized as either an expense in the statement of operations (if issued at a premium) or as a capital contribution (if issued at a discount). Changes in the estimated fair value of the notes are recognized as non-cash gains or losses in the accompanying statements of income. The Company accounts for any extinguishment of the fair value of convertible notes in accordance with FASB ASC Topic 470-50-40-2, “(Debt): Borrower’s Accounting for Debt Modifications“ (“ASC 470-50-40-2”) . Under ASC 470-50-40-2 the fair value extinguishment of convertible notes from related parties are recognized as additional paid in capital. Net Income Per Ordinary Share The Company applies the two-class method in calculating net income per Ordinary Share. The contractual formula utilized to calculate the redemption amount approximates fair value. The Class feature to redeem at fair value means that there is effectively only one class of Ordinary Share. Changes in fair value are not considered a dividend of the purposes of the numerator in the earnings per share calculation. Net income per ordinary share is computed by dividing the pro rata net income between the Class A Ordinary Share and the Class B Ordinary Share by the weighted average number of Ordinary Shares outstanding. The calculation of diluted income per Ordinary Share does not consider the effect of the Warrants issued in connection with the Initial Public Offering since the exercise of the Warrants are contingent upon the occurrence of future events and the inclusion of such Warrants would be anti-dilutive. The warrants are exercisable for 18,845,000 shares of Class A ordinary share in the aggregate. For the year ended December 31, For the year ended December 31, 2023 2022 Ordinary Shares subject to possible redemption Numerator: Earnings allocable to Redeemable Class A Ordinary Shares Net income allocable to Class A Ordinary Share subject to possible redemption $ 5,349,279 $ 9,406,826 Denominator: Redeemable Class A Ordinary Shares, Basic and diluted weighted average shares outstanding 17,364,551 23,000,000 Basic and diluted net income per share, Redeemable Class A Ordinary Shares $ 0.31 $ 0.41 Non-redeemable ordinary shares Numerator: Net income allocable to Class B Ordinary Shares not subject to redemption Net income allocable to Class B Ordinary Shares not subject to redemption $ 1,771,330 $ 2,351,707 Denominator: Weighted Average non-redeemable Class B Ordinary Shares Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income per share $ 0.31 $ 0.41 Recent Accounting Standards In June 2016, the FASB issued ASU Topic 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendments in this ASU replace the incurred loss model for recognition of credit losses with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a significant impact on the accompanying financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity-linked contracts to qualify for scope exception, and it simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective no later than January 1, 2024 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a significant impact to the Company’s financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation, as well as information related to income taxes paid to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will be effective for the annual period ending December 31, 2024. The Company is currently assessing what impact, if any, ASU 2023-09 would have on its financial position, results of operations or cash flows. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
Initial Public Offering
Initial Public Offering | 12 Months Ended |
Dec. 31, 2023 | |
Initial Public Offering | |
Initial Public Offering | Note 3—Initial Public Offering Pursuant to the Initial Public Offering, the Company sold 20,000,000 Units, at a purchase price of $10.00 per Unit. Each Unit consists of one Public Share and one-half of one Public Warrant. Each whole Public Warrant entitles the holder to purchase one Class A Ordinary Share at an exercise price of $11.50 per share (see Note 7). The Company granted the underwriters the Over-Allotment Option, exercisable for 45 days from the date of the prospectus for the Initial Public Offering, October 13, 2021, to purchase up to 3,000,000 additional Units. The underwriters exercised the Over-Allotment Option on November 3, 2021 by purchasing 3,000,000 Units at a purchase price of $10.00 per Unit. |
Private Placement
Private Placement | 12 Months Ended |
Dec. 31, 2023 | |
Private Placement | |
Private Placement | Note 4—Private Placement Simultaneously with the closing of the Initial Public Offering, the Prior Sponsor purchased an aggregate of 6,775,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant ($6,775,000 in the aggregate) in the Private Placement. Each Private Placement Warrant is exercisable to purchase one Class A Ordinary Share at a price of $11.50 per share. The proceeds from the sale of the Private Placement Warrants were added to the net 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 Private Placement will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. On November 3, 2021, pursuant to the exercise of the Over-Allotment Option (see Note 1), the Sponsor purchased an additional 570,000 Private Placement Warrants at a price of $1.00. On July 18, 2023, in connection with the Sponsor Handover, the Prior Sponsor transferred 4,961,250 Private Placement Warrants to a designee of the Sponsor, pursuant to the Sponsor Handover Share Transfer Agreement. After the closing of the Sponsor Handover, the Prior Sponsor held 2,383,750 Private Placement Warrants. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | Note 5—Related Party Transactions Founder Shares On March 15, 2021, the Prior Sponsor subscribed to purchase 7,187,500 Class B Ordinary Shares (the “Founder Shares”), and fully paid for those shares on March 19, 2021. In August 2021, the Prior Sponsor forfeited 1,437,500 Founder Shares, resulting in a decrease in the total number of Founder Shares from 7,187,500 to 5,750,000. All shares and associated amounts have been retroactively restated to reflect the share forfeiture. In March 2021, the Prior Sponsor transferred 50,000 Founder Shares (25,000 shares each) to the former Chief Financial Officer and former Chief Operating Officer at their original purchase price. On July 18, 2023, as part of the Sponsor Handover, the former Chief Financial Officer and former Chief Operating Officer transferred 38,500 Founder Shares (19,250 each) to Chunyi (Charlie) Hao, President, Chief Financial Officer and Chairman of the Board of Directors and retained 11,500 Founder Shares (5,750 each). In November 2021, the Prior Sponsor transferred a total of 150,000 Founder Shares or 25,000 shares to each of David Barksdale, Greg Boyd, David Jones, Alex Parker, Steven Rogers, and Robert Willis, each a former director of the Company (“former directors”), in each case for their par value. The Company estimated the fair value of the Founder Shares attributable to the such individuals to be $1,116,000 or $7.44 per share. Effective July 18, 2023, the Prior Sponsor amended the Founder Share Transfer Agreement with the former directors to remove the performance condition clause which required the former directors to be a director of the Company until the consummation of a Business Combination or would forfeit their Founder Shares back to the Prior Sponsor. The Founder Shares transferred to the then-Chief Financial Officer, Chief Operating Officer, and former directors is in the scope of ASC 718 (see Note 10). On July 18, 2023, the Company entered into the Sponsor Handover Securities Transfer Agreement with the Prior Sponsor and the Sponsor Purchasers, whereby the Prior Sponsor agreed to transfer to the Sponsor Purchasers, at no cost, 3,046,634 Class B Ordinary Shares and 4,961,250 Private Placement Warrants, which the Prior Sponsor purchased in connection with the Initial Public Offering and Private Placement. In addition, the Sponsor Handover Sellers transferred, at no cost, an aggregate of 1,380,866 Class B Ordinary Shares to Chunyi (Charlie) Hao, our President, Chief Financial Officer and Chairman of the Board of Directors, pursuant to the Sponsor Handover Share Transfer Agreements. In connection with the Sponsor Handover Securities Transfer Agreement, the Company retained up to $200,000 in accounts payable incurred by the Company before the Sponsor Handover, and the Sponsor agreed to finance the Company to pay off the Company Liability. After the closing of the Sponsor Handover on July 18, 2023, the Sponsor Handover Sellers held an aggregate of 1,322,500 Class B Ordinary Shares, and the Prior Sponsor held 2,383,750 Private Placement Warrants. The Prior Sponsor, the Company Sponsor, Prior Officers, Prior Directors, Anchor Investors (as defined below), the Management, and their respective designees and affiliates, have agreed that, subject to certain limited exceptions, the Founder Shares will not be transferred, assigned, or sold until the earlier of (i) one year after the completion of a Business Combination or (ii) subsequent to an initial Business Combination, (x) if the closing price of Class A Ordinary Shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after an initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, share exchange or other similar transaction that results in all of the Public Shareholders having the right to exchange their Ordinary Shares for cash, securities or other property. A total of eleven anchor investors (the “Anchor Investors”) each purchased an allocation of Units as determined by the underwriters, in the Initial Public Offering at the offering price of $10.00 per unit. Pursuant to such Units, the Anchor Investors have not been granted any shareholder or other rights in addition to those afforded to the Company’s other Public Shareholders. Further, the Anchor Investors are not required to (i) hold any Units, Class A Ordinary Shares or Warrants they may purchase in the Initial Public Offering or thereafter for any amount of time, (ii) vote any Class A Ordinary Shares they may own at the applicable time in favor of the Business Combination or (iii) refrain from exercising their right to redeem their Public Shares at the time of the Business Combination. The Anchor Investors have the same rights to the funds held in the Trust Account with respect to the Public Shares underlying the Units purchased in the Initial Public Offering as the rights afforded to the Company’s other Public Shareholders. Each Anchor Investor has entered into separate investment agreements with the Company and the Prior Sponsor pursuant to which each Anchor Investor agreed to purchase a specified number of Founder Shares. One Anchor Investor purchased 333,333 Founder Shares at a purchase price of $3 per share. In addition, the Prior Sponsor sold to the other ten Anchor Investors an aggregate of 1,585,000 Founder Shares at a purchase price of $0.01 per share. Pursuant to the investment agreements, the Anchor Investors have agreed to (a) vote any Founder Shares held by them in favor of the Business Combination and (b) subject any Founder Shares held by them to the same lock-up restrictions as the Founder Shares held by the Prior Sponsor. The Company estimated the fair value of the Founder Shares attributable to the Anchor Investors to be $13,562,614 or $7.07 per share. The excess of the fair value of the Founder Shares sold over the purchase price of $1,015,850 was determined to be an offering cost in accordance with SEC SAB 5A Administrative Support Agreement In connection with the Initial Public Offering, the Company entered into the Administrative Support Agreement with the Prior Sponsor, to pay a total of $10,000 per month for office space, secretarial and administrative services. Upon the completion of an initial Business Combination or liquidation, the Company would cease paying these monthly fees. As of December 31, 2022 the Company owed the Prior Sponsor $144,516, is included in accrued expenses on the accompanying balance sheet. On June 30, 2023, in connection with the Sponsor Handover, the Administrative Support Agreement was terminated and the outstanding amount totaling $204,516 was cancelled. The Company classified the forgiveness of service administrative fee as additional paid in capital in the accompanying statements of shareholders’ deficit. Related Party Loans In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company may repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans could be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company 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. The Working Capital Loans would either be repaid upon consummation of a Business Combination or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. On June 12, 2023, we issued an unsecured promissory note to the Prior Sponsor (the “Prior Sponsor WCL Promissory Note”), whereby the Prior Sponsor agreed to loan up to $250,000 to us for working capital needs (the “Prior Sponsor Working Capital Loan”). The Prior Sponsor has the option to convert all or any portion of the Prior Sponsor Working Capital Loan into Private Placement Warrants at a price of $1.00 per Private Placement Warrant. The Prior Sponsor Working Capital Loan accrues no interest on the unpaid principal balance. The Prior Sponsor Working Capital Loan is due on demand by the Prior Sponsor. Drawdowns could be requested until December 31, 2023. During July 2023 the Company had 4 drawdowns for a total of $158,968 under the Prior Sponsor Working Capital Loan. On September 6, 2023, the Prior Sponsor agreed to forgive the Prior Sponsor WCL Promissory Note balance due of $158,968. The fair value of the Prior Sponsor Working Capital Loan as of September 6, 2023 was $58,992 (see Note 9). The Company has accounted for the extinguishment of the fair value of Prior Sponsor Working Capital Loan as additional paid in capital due to the related party relationship in accordance with FASB ASC Topic 470-50-40-2, “Debt” In connection with the closing of the Sponsor Handover, on July 18, 2023, the Sponsor Purchasers caused $375,000 to be deposited into the Trust Account to support the first three months of the Extension from July 18, 2023 to October 18, 2023 (the “July 2023 Extension Deposit”). The Purchaser agreed to deposit into the Trust Account an additional $125,000 for each successive month, or portion thereof, that is needed by the Company to complete an initial Business Combination until the end of the Combination Period. On October 17, 2023, November 16, 2023, December 13, 2023, January 17, 2024, February 16, 2024, March 18, 2024, April 17, 2024, the Company made the monthly deposit totaling $125,000 to extend the date the Company has to complete a Business Combination until May 18, 2024. On July 18, 2023, the Company issued an unsecured promissory note in an amount of $375,000 (the “July 2023 Promissory Note”), to Chunyi (Charlie) Hao, for the July 2023 Extension Deposit. The July 2023 Promissory Note does not bear interest and will be due and payable on the earlier (a) the date that the Company consummates an initial Business Combination and (b) the date of the liquidation of the Company. On September 13, 2023, the Company issued unsecured promissory notes in an aggregate amount of $2,125,000 to the Company’s officers and their affiliates, for the Company’s working capital needs (the “September 2023 Promissory Notes”). The September 2023 Promissory Notes do not bear interest and mature upon the earlier of on the earlier (a) the date that the Company consummates an initial Business Combination and (b) the date of the liquidation of the Company. As of December 31, 2023, the Company received $1,625,000 of the proceeds from the September 2023 Promissory Notes. On January 5, 2024, the Company received the remaining $500,000 of proceeds from the September 2023 Promissory Notes. The outstanding promissory notes from the July 2023 Promissory Note and September 2023 Promissory Notes totaled $2,000,000 as of December 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 6—Commitments and Contingencies Registration and Shareholder Rights Agreement Pursuant to the Registration Rights Agreement, the holders of the Founder Shares, Private Placement Warrants (and any Class A Ordinary Shares issuable upon the exercise of the Private Placement Warrants are entitled to registration rights. The holders of these securities are entitled to make up to three demands, excluding short form 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 consummation of a Business Combination. The Company bears the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement Pursuant to the Underwriting Agreement, the Company paid an underwriting discount of $0.20 per Public Unit Offering (as defined in the Underwriting Agreement) price to the underwriters at the closing of the Initial Public Offering and Over-Allotment Option. The underwriting discount was paid in cash. In addition, the Company agreed to pay deferred underwriting commissions of $0.45 per Unit, or $10,350,000 in the aggregate. The deferred underwriting commission would become payable to the underwriters from the amount held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the Underwriting Agreement, including the performance of services specified therein. On June 23, 2023, in connection with the Sponsor Handover, the underwriters agreed to waive their entitlement to the deferred underwriting commission of $10,350,000 to which it became entitled upon completion of the Initial Public Offering. As a result, the Company derecognized the entire deferred underwriting fee payable of $10,350,000 and recorded $9,868,725 of the forgiveness of the deferred underwriting fee allocated to Public Shares to additional paid-in capital and the remaining balance of $481,275 was a gain from extinguishment of liability allocated to warrant liabilities. Forward Purchase Agreements On June 21, 2021 and July 26, 2021, respectively, the Company entered into forward purchase agreements (the “Forward Purchase Agreements”) pursuant to which one Anchor Investor and one institutional accredited investor that are not affiliated with the Prior Sponsor, Sponsor, Prior Directors, Prior Officers or any member of Management (the “Forward Purchase Investors”), subscribed to purchase from the Company an aggregate of 4,500,000 Class A Ordinary Shares at a price of $10.00 per share as described in the Forward Purchase Agreements, each in a private placement that would close immediately prior to the closing of our initial Business Combination. The terms of the forward purchase shares would generally be identical to the Class A Ordinary Shares included in the Units, except that they would have registration rights and rights of first refusal with respect to any Business Combination financing, as described in the Forward Purchase Agreements. One of the Forward Purchase Investors may elect, in its sole discretion, to purchase convertible debt securities or non-convertible debt instruments in lieu of the forward purchase shares, or a combination thereof, for an aggregate purchase price of up to $25,000,000. On September 13, 2023 and September 14, 2023, the Company and the Forward Purchase Investors mutually terminated and cancelled the Forward Purchase Agreements described above. Investment Banking Services In February 2023, the Company entered into an agreement with a third-party investment banking company to provide certain investment banking services in connection with a potential Business Combination of a privately held company as described in Note 1 and a possible private placement by the Company to one or more potential investors of securities of the Company in connection with the potential Business Combination. The investment banking company as part of the agreement, may be entitled to success fees in the event that the Company finalizes a Business Combination. The Company also agreed to reimburse the investment banking company for all reasonable out-of-pocket expenses, not to exceed $525,000, regardless of the consummation of a Business Combination. As of December 31, 2023 the Company has paid all outstanding reimbursable costs in the amount of $98,089. In July 2023, the Company terminated the agreement with the third party investment banking company for the provision of certain investment banking services in connection with a potential Business Combination (which included waiver of all potential fees and rights thereunder by the third-party investment banking company, excluding the above unbilled reimbursable costs noted above). |
Warrant Liability
Warrant Liability | 12 Months Ended |
Dec. 31, 2023 | |
Warrant Liability | |
Warrant Liability | Note 7—Warrant Liability Public Warrants may only be exercised for a whole number of shares. No fractional Public Warrants will be issued upon separation of the Units and only whole Public 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; provided in each case that the Company has an effective registration statement under the Securities Act covering the issuance of the Class A Ordinary Shares issuable upon exercise of the Public Warrants and a current prospectus relating to them is available and such shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder (or the Company permits holders to exercise their Public Warrants on a cashless basis under the circumstances specified in the Warrant Agreement). The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of the initial Business Combination, the Company will use its commercially reasonable efforts to file, and within 60 business days following the initial Business Combination to have declared effective, a registration statement covering the issuance of Class A Ordinary Shares issuable upon exercise of the Warrants and to maintain a current prospectus relating to those Class A Ordinary Shares until the Warrants expire or are redeemed; provided, that if the Class A Ordinary Shares are 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 Public 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, it will not be required to file or maintain in effect a registration statement, but it will be required to use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. The Warrants have an exercise price of $11.50 per share. If (x) the Company issues additional shares or equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.20 per share (as adjusted for stock splits, stock dividends, rights issuances, subdivisions, reorganizations, recapitalizations and the like) (with such issue price or effective issue price The Private Placement Warrants are identical to the Public Warrants, except that (1) the Private Placement Warrants and the Class A Ordinary Shares issuable upon exercise of the Private Placement Warrants are not transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions, (2) the Private Placement Warrants will be non-redeemable (except as described below) so long as they are held by the Sponsor or its permitted transferees, (3) the Private Placement Warrants may be exercised by the holders on a cashless basis and (4) the holders of the Private Placement Warrants (including with respect to the Ordinary Shares issuable upon exercise of the Private Placement Warrants) are entitled to registration rights. If the Private Placement Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company in all redemption scenarios and exercisable by such holders on the same basis as the Public Warrants. The Company may call the Public Warrants for redemption: · in whole and not in part; · at a price of $0.01 per warrant; · upon a minimum of 30 days’ prior written notice of redemption; and · if, and only if, the last reported sale price of the Class A Ordinary Shares equals or exceeds $18.00 per share (as adjusted for split-up of Ordinary Shares, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within the 30-trading day period ending on the third business day prior to the date on which the Company sends the notice of redemption to the warrant holders. If the Company calls the Public Warrants for redemption, Management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the Warrant Agreement. In no event will the Company be required to net cash settle any Warrant. 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, The Company accounts for the 18,845,000 Warrants issued in connection with the Initial Public Offering (including 11,500,000 Public Warrants and 7,345,000 Private Placement Warrants) in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the Warrants do not meet the criteria for equity treatment thereunder, each Warrant must be recorded as a liability. The Private Placement Warrants have a provision whereby the Private Placement Warrants if transferred to persons other than permitted transferees shall upon transfer cease to be Private Placement Warrants and shall become Public Warrants. Because of this provision the Private Placement Warrants settlement amounts are dependent on the warrant holder and the Private Placement Warrants are not considered indexed to the Company’s ordinary shares therefore precluding equity classification. The Public Warrant tender provisions do not provide for the warrant holders and the underlying shareholders to receive the same pro rata settlement amount. Because of this tender offer provision it requires the Public Warrants to be classified as a liability because the settlement amount received by the warrant holder could be greater than the holder of the Company’s ordinary shares. The accounting treatment of derivative financial instruments requires that the Company record the Warrants as derivative liabilities at fair value upon the closing of the Initial Public Offering. The Public Warrants have been allocated a portion of the proceeds from the issuance of the Units equal to its fair value. These warrant liabilities are subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liability will be adjusted to its current fair value, with the change in fair value recognized in the Company’s statement of operations. The Company will reassess the classification at each balance sheet date. If the classification changes as a result of events during the period, the warrants will be reclassified as of the date of the event that causes the reclassification. |
Shareholders Deficit
Shareholders Deficit | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders Deficit | |
Shareholders' Deficit | Note 8—Shareholders’ Deficit Class A Ordinary Shares The Company is authorized to issue 90,000,000 Class A Ordinary Shares with a par value of $0.0001 per share. At December 31, 2023 and 2022, there were no Class A Ordinary Shares issued and outstanding, excluding 10,608,802 and 23,000,000 Class A ordinary shares subject to possible redemption, respectively. Class B Ordinary Shares The Company is authorized to issue 10,000,000 Class B Ordinary Shares with a par value of $0.0001 per share. At December 31, 2023 and 2022, there were 5,750,000 Class B Ordinary Shares issued and outstanding. Shareholders of record are entitled to one vote for each share held on all matters to be voted on by shareholders; provided that, prior to the completion of the initial Business Combination, holders of the Class B Ordinary Shares have the right to elect all of the Company’s directors and remove members of the Board for any reason. Holders of the Public Shares are not entitled to vote on the Company’s election of directors during such time. These provisions of the Amended and Restated Memorandum governing the appointment or removal of directors prior to the initial Business Combination may only be amended by a special resolution passed by no less than two-thirds of the Ordinary Shares who attend and vote at the Company’s general meeting, which shall include the affirmative vote of a simple majority of the Class B Ordinary Shares. With respect to any other matter submitted to a vote of the Company’s shareholders, including any vote in connection with the initial Business Combination, holders of the Class A Ordinary Shares and holders of the Class B Ordinary Shares vote together as a single class on all matters submitted to a vote of the Company’s shareholders, except as required by law. The Class B Ordinary Shares will automatically convert into Class A Ordinary Shares at the time of the initial Business Combination, or earlier at the option of the holders, on a one-for-one basis. In the case that additional Class A Ordinary Shares, 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 the initial Business Combination, including pursuant to a specified future issuance, the ratio at which Class B Ordinary Shares shall convert into Class A Ordinary Shares will be adjusted (unless the holders of a majority of the then-outstanding Class B Ordinary Shares agree to waive such adjustment with respect to any such issuance or deemed issuance, including a specified future issuance) so that the number of Class A Ordinary Shares issuable upon conversion of all Class B Ordinary Shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all Ordinary Shares outstanding upon the completion of the Initial Public Offering plus all Class A Ordinary Shares and equity-linked securities issued or deemed issued in connection with the initial Business Combination (excluding any shares or equity-linked securities issued or issuable to any seller in the initial Business Combination). Preferred Shares The Company is authorized to issue 1,000,000 shares of preferred shares, par value $0.0001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Board. At December 31, 2023 and 2022, there were no preferred shares issued or outstanding. Dividends The Company has not paid any cash dividends on the Ordinary Shares to date and does not intend to pay cash dividends prior to the completion of the initial Business Combination. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 9—Fair Value Measurements The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Investments held in Trust Account $ 235,933,496 $ — $ — $ 235,933,496 Total $ 235,933,496 $ — $ — $ 235,933,496 On November 9, 2023, the Company instructed Continental, the trustee with respect to the Trust Account, to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in an interest-bearing demand deposit account at a bank, with Continental continuing to act as trustee. As a result, following the liquidation of investments in the Trust Account, the remaining proceeds from the Initial Public Offering, Over-Allotment Option and Private Placement are no longer invested in U.S. government securities or money market funds. As of December 31, 2023, the cash held in Trust Account no longer falls under the fair value hierarchy. As of December 31, 2023 Level 1 Level 2 Level 3 Total Liabilities: Warrant liability – Public Warrants $ 230,000 $ — $ — $ 230,000 Warrant liability - Private Placement Warrants — 146,900 — 146,900 Total $ 230,000 $ 146,900 $ — $ 376,900 As of December 31, 2022 Level 1 Level 2 Level 3 Total Liabilities: Warrant liability – Public Warrants $ 345,000 $ — $ — $ 345,000 Warrant liability - Private Placement Warrants — 220,350 — 220,350 Total $ 345,000 $ 220,350 $ — $ 565,350 As of December 31, 2023 and 2022 estimated fair value of the Public Warrants was determined by their public trading price and the Private Placement Warrants estimated value was based on the public trading price of the Public Warrants. The reason for the Private Placement Warrants being estimated as the same value as the Public Warrants was because of the make-whole provisions, whereby, the Private Placement Warrants are subject to the same redemption rights as the Public Warrants (see Note 7). The estimated fair value of the Private Placement Warrants are determined using Level 2 inputs. The Company utilized a compound option valuation model to estimate the fair value of the Prior Sponsor Working Capital Loan. Significant inputs to the valuation are as follows at each drawdown: July 6, 2023 July 7, 2023 July 13, 2023 July 13, 2023 Conversion price $ 1.00 $ 1.00 $ 1.00 $ 1.00 Private warrant price $ 0.03 $ 0.03 $ 0.03 $ 0.03 Volatility 3.20 % 3.20 % 3.20 % 3.20 % Term 1.29 1.28 1.27 1.27 Risk-free rate 5.31 % 5.28 % 5.09 % 5.43 % Dividend yield 0.00 % 0.00 % 0.00 % 0.00 % Number of steps 50 50 50 50 Drawdown amount – cash value $ 39,585 $ 19,602 $ 98,089 $ 1,692 Fair value $ 1,090 $ 540 $ 2,717 $ 47 As noted in Note 5, the Prior Sponsor forgave the Prior Sponsor WCL Promissory Note on September 6, 2023. Significant inputs to the valuation are as follows at September 6, 2023: September 6, 2023 Conversion price $ 1.00 Private warrant price $ 0.07 Volatility 3.30 % Term 1.12 Risk-free rate 5.39 % Dividend yield 0.00 % Number of steps 50 Total drawdowns date of forgiveness – cash value $ 158,968 Fair value $ 58,992 The following tables provides a summary of the changes in the fair value of the Company’s Level 3 financial instruments that are measured at fair value on a recurring basis for the year ended December 31, 2023 and 2022: Convertible promissory note – Prior Sponsor Working Capital Loan Private Placement Warrants Total Fair value at December 31, 2022 $ - $ 220,350 $ 220,350 Proceeds from drawdown – cash value 158,968 - 158,968 Change in fair value of Private Placement Warrants (73,450 ) (73,450 ) Transfer of Private Placement Warrants from Level 3 to Level 2 (146,900 ) (146,900 ) Change in fair value of convertible note (99,976 ) - (99,976 ) Forgiveness of convertible note moved to additional paid in capital (58,992 ) - (58,992 ) Fair value at December 31, 2023 $ - $ - $ - Private Placement Warrants Fair value at December 31, 2021 $ 3,819,400 Change in fair value of Private Placement Warrants (3,599,050 ) Transfer of Private Placement Warrants from Level 3 to Level 2 (220,350 ) Fair value at December 31, 2022 $ - Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period in which a change in valuation technique or methodology occurs.The Private Placement Warrants were transferred from Level 3 to Level 2 as of December 31, 2023 and 2022 because the fair value was based off the public trading price of the Public Warrants due to the make-whole provisions. The Private Placement Warrants were previously valued using a probability-adjusted Black Scholes pricing model. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation | |
Share-Based Compensation | Note 10—Share-Based Compensation Under ASC 718, share-based compensation associated with equity-classified awards is measured at fair value upon the grant date and expensed when earned, unless there is a modification in the award. As described in Note 5, the former Chief Financial Officer and former Chief Operating Officer were transferred 50,000 Founder Shares (25,000 each) from the Prior Sponsor at the original purchase price in March 2021. The Company did not record any share-based compensation related to the 50,000 Founder Shares held by the former Chief Financial Officer and former Chief Operating Officer at the grant date as the amount was deemed de minimise. The 150,000 Founder Shares transferred from the Prior Sponsor to the former directors had no share-based compensation recorded at the original grant date because the Founder Share Transfer Agreement had a performance condition that was not probable of being met. On July 18, 2023, as part of the Sponsor Handover each of the former directors transferred 19,250 of Founder Shares to Chunyi (Charlie) Hao, President, Chief Financial Officer and Chairman of the Board of Directors, for a total of 115,500 and the former directors retained 5,750 each for a total of 34,500 Founder Shares. The 115,500 Founder Shares transferred to Chunyi (Charlie) Hao requires him to be a director at the time of the consummation of a Business Combination or the 115,500 Founder Shares will be transferred back to the former directors. Under ASC 718, the 115,500 Founder Shares transferred to Chunyi (Charlie) Hao have a performance condition that is not probable of occurring at the date he received the 115,500 Founder Shares, therefore no share based compensation has been recorded for the 115,500 Founder Shares as of September 30, 2023. . The former directors retained 34,500 Founder Shares (5,750 Founder shares each) as part of the Sponsor Handover. Effective July 18, 2023, the Prior Sponsor amended the Founder Share Transfer Agreement with the former directors to eliminate the performance condition. Under ASC 718, the amendment to remove the performance condition is considered a modification of the equity-classified award. In accordance with ASC 718, the modification to change the vesting in an equity-classified award from improbable to probable requires the Company to determine the fair value of the modified equity-classified award at the modification date and recognize share-based compensation over the remaining service period, if any. The 34,500 Founder Shares retained by the former directors, effective July 18, 2023 were considered fully vested and the Company recorded a share-based compensation expense in the amount of $35,535 which is included in general and administrative expenses in the statement of income for the year ended December 31, 2023. The Company estimated the Founder Shares fair value on July 18, 2023 by using a pricing model with the following inputs: July 18, 2023 Class A Ordinary Share Price $ 10.46 Discount rate using Finnerty Model 1.10 % Volatility 3.20 % Term (in years) 2.3 Fair value $ 1.03 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | Note 11—Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheets date up to the date that the accompanying financial statements were issued. Based upon this review, other than as set forth below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the accompanying financial statements. On January 5, 2024, the Company received the remaining $500,000 of proceeds from the September 2023 Promissory Notes (see Note 5). On January 17, 2024, February 16, 2024, March 18, 2024 and April 17, 2024 the Company made the monthly deposit totaling $125,000 to extend the date the Company has to complete a Business Combination until May 18, 2024. On April 17, 2024, the Company received a notice (the “NYSE Notice”) from the New York Stock Exchange (“NYSE”) that the Company is not in compliance with Section 802.01E of the NYSE Listed Company Manual as a result of its failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “Form 10-K”) with the SEC. The NYSE Notice has no immediate effect on the listing of the Company’s Ordinary Shares on NYSE. The NYSE Notice informed the Company that, under NYSE rules, the Company has six months from April 16, 2024 to regain compliance with the NYSE listing standards by filing the Form 10-K with the SEC. If the Company fails to file the Form 10-K within the six-month period, NYSE may grant, in its sole discretion, an extension of up to six additional months for the Company to regain compliance, depending on the specific circumstances. The NYSE Notice also notes that NYSE may nevertheless commence delisting proceedings at any time if it deems that the circumstances warrant. On April 24, 2024, Michael H. Liu notified the Board of his resignation as Chief Financial Officer and director of the Company, effective on April 23, 2024. On April 29, 2024, the Board appointed (i) Chunyi (Charlie) Hao, the Company’s President and Chairman of the Board, as the Chief Financial Officer of the Company, effective on April 29, 2024, and (ii) Xiaoma (Sherman) Lu, the Company’s Chief Executive Officer, as a director of the Company, to fill the vacancy left by Mr. Liu’s departure, effective on April 29, 2024. On April 26, 2024, in connection with the Business Combination Agreement, the Company entered into the Amended Lock-Up Agreements with two Helport Investors, pursuant to which the Helport Investors agreed not to execute a Prohibited Transfer during the Lock-Up Period, provided, however, (i) each Helport Investor would be permitted to transfer the Lock-Up Securities during the Lock-Up Period to certain other shareholders of Helport, subject to certain trading volume limitations, and (ii) if each Holder made a credit facility available to Helport of at least $2,000,000 and $4,000,000, respectively, the Lock-Up Securities would be subject to early release upon the twelve-month anniversary of the Closing. On May 3, 2024, the Company issued (i) an unsecured promissory note in the principal amount of up to $400,000 to Chunyi (Charlie) Hao, the Company’s President, Chief Financial Officer and Chairman of the Board of the Company, and (ii) an unsecured promissory note in the principal amount of up to $200,000 to Xiaoma (Sherman) Lu, the Company’s Chief Executive Officer and a director of the Company, in connection with working capital loans to the Company. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies | |
Basis of presentation | The accompanying financial statements are presented in U.S. dollars, in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. |
Emerging Growth Company | The Company is an “emerging growth company,” as defined in Section 2(a) of 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 auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder 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 an emerging growth 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 financial statements with another public company which is neither an emerging growth company nor an emerging growth company that 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 accompanying financial statements in conformity with GAAP requires the 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 financial statements and the reported amounts of expenses during the reporting period. 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 accompanying financial statements, 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 from those estimates. |
Cash and 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 equivalents as of December 31, 2023 and December 31, 2022. |
Cash and Investments Held in Trust Account | As of December 31, 2023 the assets held in Trust Account were held in an interest-bearing demand deposit account. As of December 31, 2022, the assets held in Trust Account were held in money market funds, which invest in U.S. Treasury securities. Until November 9, 2023, the Company’s portfolio of investments held in the Trust Account was 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, or investments in money market funds that invest in U.S. government securities, or a combination thereof. The Company classifies its U.S. Treasury securities as trading securities in accordance with FASB ASC Topic 320 “Investments—Debt and Equity Securities.” To mitigate the risk that the Company might be deemed an investment company for purposes of the Investment Company Act, on November 9, 2023, the Company instructed Continental, the trustee with respect to the Trust Account, to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in an interest-bearing demand deposit account at a bank, with Continental continuing to act as trustee. As a result, following the liquidation of investments in the Trust Account, the remaining proceeds from the Initial Public Offering, Over-Allotment Option and Private Placement are no longer invested in U.S. government securities or money market funds. |
Class A Ordinary Shares Subject to Possible Redemption | The Company accounts for its Ordinary Shares subject to possible redemption in accordance with the guidance in ASC 480. 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 not solely within the Company’s control) are classified as temporary equity. At all other times, Ordinary Shares are classified as shareholders’ equity. The Ordinary Shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Class A Ordinary Shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable Class A Ordinary Shares are affected by charges against additional paid-in capital totaling $9,554,011 for the year ended December 31, 2023. For the year ended December 31, 2022, the increases in the carrying out of redeemable Class A Ordinary Shares are affected by charges against accumulated deficit totaling $3,361,005. The Class A Ordinary Shares subject to possible redemption reflected on the accompanying balance sheets as of December 31, 2023 and December 31, 2022 are reconciled on the following table: Gross proceeds from Initial Public Offering, including sale of the Over-Allotment Option $ 230,000,000 Less: Fair value of Public Warrants at issuance (10,695,000 ) Offering costs allocated to Class A Ordinary Shares subject to possible redemption, net of reimbursement from underwriters (24,329,399 ) Plus: Initial accretion on Class A Ordinary Shares subject to possible redemption amount 37,324,399 Class A Ordinary Shares subject to possible redemption, December 31, 2021 232,300,000 Plus: Remeasurement on Class A Ordinary Shares subject to possible redemption amount 3,631,005 Class A Ordinary Shares subject to possible redemption, December 31, 2022 235,931,005 Less: Redemption of Class A Ordinary Shares (130,320,660 ) Plus: Accretion on Class A Ordinary Shares subject to possible redemption amount 9,554,011 Class A Ordinary Shares subject to possible redemption, December 31, 2023 $ 115,164,356 As of December 31, 2023 and December 31, 2022, 10,608,802 and 23,000,000, respectively, Class A Ordinary Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s accompanying balance sheets. |
Income Taxes | The Company accounts for income taxes under FASB ASC Topic 740, “ Income Taxes ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position 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. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the accompanying financial statements. The Company is subject to income tax examinations by major taxing authorities since inception. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2023 and December 31, 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. There are no taxes in the Cayman Islands and accordingly income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. |
Share-based Compensation | The Company adopted FASB ASC Topic 718, “Compensation—Stock Compensation” (“ASC 718”)”, guidance to account for its share-based compensation. It defines a fair value-based method of accounting for an employee share option or similar equity instrument. The Company recognizes all forms of share-based payments, including share option grants, warrants and restricted share grants, at their fair value on the grant date, which are based on the estimated number of awards that are ultimately expected to vest. Share-based payments, excluding restricted shares, are valued using a Black-Scholes option pricing model. Grants of share-based payment awards issued to nonemployees for services rendered have been recorded at the fair value of the share-based payment, which is the more readily determinable value. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the termination of service. Share-based compensation expenses are included in costs and operating expenses depending on the nature of the services provided in the statements of operations. |
Concentration of Credit Risk | Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and Management believes the Company is not exposed to significant risks on such account. |
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 FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the accompanying statements of operations. Derivative assets and liabilities are classified in the accompanying balance sheets 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. |
Warrant Liabilities | The Company evaluated the Public Warrants and Private Placement Warrants, in accordance with FASB ASC Topic 815-40, “Derivatives and Hedging - Contracts in Entity’s Own Equity” (“ASC 815-40”), and concluded that a provision in the Warrant Agreement, dated October 13, 2021, by and between the Company and Continental (the “Warrant Agreement”), related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815-40, the Warrants are recorded as derivative liabilities on the accompanying balance sheets and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with FASB ASC Topic 820, “Fair Value Measurement” (“ASC 820”), with changes in fair value recognized in the statement of operations in the period of change. The Private Placement Warrants were initially measured at fair value using a modified Black-Scholes Option Pricing Model. As the transfer of Private Placement Warrants to anyone who is not permitted transferee would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant. The fair value of the Public and Private Placement Warrants as of December 31, 2023 and 2022 is based on observable listed prices. The Private Placement Warrants have the same value as the Public Warrants since they are also subject to the make-whole provisions, per the warrant agreement. |
Fair Value of Financial Instruments | ASC 820 establishes a fair value hierarchy that prioritizes and ranks the level of observability of inputs used to measure investments at fair value. The observability of inputs is impacted by a number of factors, including the type of investment, characteristics specific to the investment, market conditions and other factors. 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). Investments with readily available quoted prices or for which fair value can be measured from quoted prices in active markets will typically have a higher degree of input observability and a lesser degree of judgment applied in determining fair value. The carrying amounts reflected in the accompanying balance sheets for cash, prepaid expenses, due from related party, investments held in trust account, accounts payable, and accrued offering costs and expenses approximate fair value due to their short-term nature. The three levels of the fair value hierarchy under ASC 820 are as follows: · Level 1—Quoted prices (unadjusted) in active markets for identical investments at the measurement date are used. · Level 2—Pricing inputs are other than quoted prices included within Level 1 that are observable for the investment, either directly or indirectly. Level 2 pricing inputs include quoted prices for similar investments in active markets, quoted prices for identical or similar investments in markets that are not active, inputs other than quoted prices that are observable for the investment, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3—Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment. The inputs used in determination of fair value require significant judgment and estimation. In some cases, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the investment is categorized in its entirety is determined based on the lowest level input that is significant to the investment. Assessing the significance of a particular input to the valuation of an investment in its entirety requires judgment and considers factors specific to the investment. The categorization of an investment within the hierarchy is based upon the pricing transparency of the investment and does not necessarily correspond to the perceived risk of that investment. See Note 9 for additional information on assets and liabilities measured at fair value. |
Convertible Promissory Note - Prior Sponsor Working Capital Loan | The Company accounts for the convertible promissory notes under ASC 815. The Company has made the election under ASC 815-15-25 to account for the notes under the fair value option. Using the fair value option, the convertible promissory notes are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Differences between the face value of the notes and fair value at issuance are recognized as either an expense in the statement of operations (if issued at a premium) or as a capital contribution (if issued at a discount). Changes in the estimated fair value of the notes are recognized as non-cash gains or losses in the accompanying statements of income. The Company accounts for any extinguishment of the fair value of convertible notes in accordance with FASB ASC Topic 470-50-40-2, “(Debt): Borrower’s Accounting for Debt Modifications“ (“ASC 470-50-40-2”) . Under ASC 470-50-40-2 the fair value extinguishment of convertible notes from related parties are recognized as additional paid in capital. |
Net Income Per Ordinary Share | The Company applies the two-class method in calculating net income per Ordinary Share. The contractual formula utilized to calculate the redemption amount approximates fair value. The Class feature to redeem at fair value means that there is effectively only one class of Ordinary Share. Changes in fair value are not considered a dividend of the purposes of the numerator in the earnings per share calculation. Net income per ordinary share is computed by dividing the pro rata net income between the Class A Ordinary Share and the Class B Ordinary Share by the weighted average number of Ordinary Shares outstanding. The calculation of diluted income per Ordinary Share does not consider the effect of the Warrants issued in connection with the Initial Public Offering since the exercise of the Warrants are contingent upon the occurrence of future events and the inclusion of such Warrants would be anti-dilutive. The warrants are exercisable for 18,845,000 shares of Class A ordinary share in the aggregate. For the year ended December 31, For the year ended December 31, 2023 2022 Ordinary Shares subject to possible redemption Numerator: Earnings allocable to Redeemable Class A Ordinary Shares Net income allocable to Class A Ordinary Share subject to possible redemption $ 5,349,279 $ 9,406,826 Denominator: Redeemable Class A Ordinary Shares, Basic and diluted weighted average shares outstanding 17,364,551 23,000,000 Basic and diluted net income per share, Redeemable Class A Ordinary Shares $ 0.31 $ 0.41 Non-redeemable ordinary shares Numerator: Net income allocable to Class B Ordinary Shares not subject to redemption Net income allocable to Class B Ordinary Shares not subject to redemption $ 1,771,330 $ 2,351,707 Denominator: Weighted Average non-redeemable Class B Ordinary Shares Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income per share $ 0.31 $ 0.41 |
Recent Accounting Standards | In June 2016, the FASB issued ASU Topic 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendments in this ASU replace the incurred loss model for recognition of credit losses with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a significant impact on the accompanying financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity-linked contracts to qualify for scope exception, and it simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective no later than January 1, 2024 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a significant impact to the Company’s financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation, as well as information related to income taxes paid to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will be effective for the annual period ending December 31, 2024. The Company is currently assessing what impact, if any, ASU 2023-09 would have on its financial position, results of operations or cash flows. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies | |
Ordinary Shares subject to possible redemption | Gross proceeds from Initial Public Offering, including sale of the Over-Allotment Option $ 230,000,000 Less: Fair value of Public Warrants at issuance (10,695,000 ) Offering costs allocated to Class A Ordinary Shares subject to possible redemption, net of reimbursement from underwriters (24,329,399 ) Plus: Initial accretion on Class A Ordinary Shares subject to possible redemption amount 37,324,399 Class A Ordinary Shares subject to possible redemption, December 31, 2021 232,300,000 Plus: Remeasurement on Class A Ordinary Shares subject to possible redemption amount 3,631,005 Class A Ordinary Shares subject to possible redemption, December 31, 2022 235,931,005 Less: Redemption of Class A Ordinary Shares (130,320,660 ) Plus: Accretion on Class A Ordinary Shares subject to possible redemption amount 9,554,011 Class A Ordinary Shares subject to possible redemption, December 31, 2023 $ 115,164,356 |
Schedule of Earnings Per Share, Basic and Diluted | For the year ended December 31, For the year ended December 31, 2023 2022 Ordinary Shares subject to possible redemption Numerator: Earnings allocable to Redeemable Class A Ordinary Shares Net income allocable to Class A Ordinary Share subject to possible redemption $ 5,349,279 $ 9,406,826 Denominator: Redeemable Class A Ordinary Shares, Basic and diluted weighted average shares outstanding 17,364,551 23,000,000 Basic and diluted net income per share, Redeemable Class A Ordinary Shares $ 0.31 $ 0.41 Non-redeemable ordinary shares Numerator: Net income allocable to Class B Ordinary Shares not subject to redemption Net income allocable to Class B Ordinary Shares not subject to redemption $ 1,771,330 $ 2,351,707 Denominator: Weighted Average non-redeemable Class B Ordinary Shares Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income per share $ 0.31 $ 0.41 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements | |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Investments held in Trust Account $ 235,933,496 $ — $ — $ 235,933,496 Total $ 235,933,496 $ — $ — $ 235,933,496 As of December 31, 2023 Level 1 Level 2 Level 3 Total Liabilities: Warrant liability – Public Warrants $ 230,000 $ — $ — $ 230,000 Warrant liability - Private Placement Warrants — 146,900 — 146,900 Total $ 230,000 $ 146,900 $ — $ 376,900 As of December 31, 2022 Level 1 Level 2 Level 3 Total Liabilities: Warrant liability – Public Warrants $ 345,000 $ — $ — $ 345,000 Warrant liability - Private Placement Warrants — 220,350 — 220,350 Total $ 345,000 $ 220,350 $ — $ 565,350 Convertible promissory note – Prior Sponsor Working Capital Loan Private Placement Warrants Total Fair value at December 31, 2022 $ - $ 220,350 $ 220,350 Proceeds from drawdown – cash value 158,968 - 158,968 Change in fair value of Private Placement Warrants (73,450 ) (73,450 ) Transfer of Private Placement Warrants from Level 3 to Level 2 (146,900 ) (146,900 ) Change in fair value of convertible note (99,976 ) - (99,976 ) Forgiveness of convertible note moved to additional paid in capital (58,992 ) - (58,992 ) Fair value at December 31, 2023 $ - $ - $ - Private Placement Warrants Fair value at December 31, 2021 $ 3,819,400 Change in fair value of Private Placement Warrants (3,599,050 ) Transfer of Private Placement Warrants from Level 3 to Level 2 (220,350 ) Fair value at December 31, 2022 $ - |
Schedule Of fair value of financial instruments that are measured | July 6, 2023 July 7, 2023 July 13, 2023 July 13, 2023 Conversion price $ 1.00 $ 1.00 $ 1.00 $ 1.00 Private warrant price $ 0.03 $ 0.03 $ 0.03 $ 0.03 Volatility 3.20 % 3.20 % 3.20 % 3.20 % Term 1.29 1.28 1.27 1.27 Risk-free rate 5.31 % 5.28 % 5.09 % 5.43 % Dividend yield 0.00 % 0.00 % 0.00 % 0.00 % Number of steps 50 50 50 50 Drawdown amount – cash value $ 39,585 $ 19,602 $ 98,089 $ 1,692 Fair value $ 1,090 $ 540 $ 2,717 $ 47 |
Schedule of assumptions | September 6, 2023 Conversion price $ 1.00 Private warrant price $ 0.07 Volatility 3.30 % Term 1.12 Risk-free rate 5.39 % Dividend yield 0.00 % Number of steps 50 Total drawdowns date of forgiveness – cash value $ 158,968 Fair value $ 58,992 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation | |
Schedule Of Founder Shares fair value | July 18, 2023 Class A Ordinary Share Price $ 10.46 Discount rate using Finnerty Model 1.10 % Volatility 3.20 % Term (in years) 2.3 Fair value $ 1.03 |
Description of Organization a_2
Description of Organization and Business Operations and Liquidity (Detail Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 03, 2021 | Dec. 18, 2023 | Oct. 18, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 06, 2023 | Jul. 18, 2023 | Jul. 13, 2023 | Jul. 07, 2023 | Jul. 06, 2023 | |
Company liabilities | $ 2,994,966 | $ 11,213,444 | ||||||||
Additional paid-in capital | 68,214 | |||||||||
Prior Sponsor capital contribution | 191,628 | |||||||||
Termination fee | $ 60,000 | 0 | ||||||||
Term of restricted investments | 185 days | |||||||||
Percentage of public shares subject to restriction | 15% | |||||||||
Percentage of public shares to be redeemed in case initial business combination is not completed | 100% | |||||||||
Interest to pay dissolution expenses | $ 100,000 | |||||||||
Liquidation basis of accounting, accrued costs to dispose of assets and liabilities | $ 100,000 | |||||||||
Per share value of the residual assets remaining available for distribution including Trust Account assets | $ 10.10 | |||||||||
Temporary equity, liquidation preference per share | $ 10.10 | |||||||||
Redemption of shares limited amount | $ 5,000,001 | |||||||||
Cash | 436,317 | $ 158,968 | $ 98,089 | $ 19,602 | $ 39,585 | |||||
Proceeds from issuance of warrants | $ 7,345,000 | |||||||||
Gross proceeds from initial public offer | $ 200,000,000 | |||||||||
Deferred underwriting fee payable non current | $ 0 | $ 10,350,000 | ||||||||
Charter Amendment [Member] | ||||||||||
Temporary equity, redemption price per share | $ 10.52 | |||||||||
Public shares outstanding | 10,608,802 | |||||||||
Shares authorized by shareholders | 12,391,198 | |||||||||
Payment to shareholders | $ 130,320,660 | |||||||||
Securities Purchase Agreement [Member] | ||||||||||
Warrants to purchased | 4,961,250 | |||||||||
Number of ordinary shares transferred | 1,380,866 | |||||||||
Purchaser of shares | 3,046,634 | |||||||||
Common stock price shares, par value | $ 0.0001 | |||||||||
Helport Business Combination Agreement [Member] | ||||||||||
Aggregate merger consideration amount Description | (i) remove the Earnout and the related Earnout Escrow and (ii) reduce the Aggregate Merger Consideration Amount from three hundred and fifty million U.S. dollars ($350,000,000) to three hundred and thirty-five million U.S. dollars ($335,000,000) | |||||||||
Aggregate merger consideration amount payment to party | $ 335,000,000 | |||||||||
Net tangible assets | $ 5,000,001 | |||||||||
Common stock price shares, par value | $ 1 | |||||||||
Helport Business Combination Agreement [Member] | Termination [Member] | ||||||||||
Termination fee | $ 3,000,000 | |||||||||
Lock Up Agreements [Member] | ||||||||||
Closing Date Description | during the period commencing from the Closing Date and ending on the 24-month anniversary of the Closing Date (subject to early release if (x) the closing price of Pubco Ordinary Shares equals or exceeds $12.00 per share for any 20 out of 30 trading days commencing 270 days after the Closing | |||||||||
Preferred shares, par value | $ 1 | |||||||||
Private Placement Warrant [Member] | ||||||||||
Accounts payable and accrued expenses | $ 200,000 | |||||||||
Incurred expenses | $ 191,628 | |||||||||
Company liabilities | 200,000 | |||||||||
Additional paid-in capital | $ 191,628 | |||||||||
Stock issued during period, Shares | 3,000,000 | |||||||||
Held aggregate of warrants shares | 2,383,750 | |||||||||
Class of warrants or rights issued during period, warrants | 6,775,000 | |||||||||
Class of warrants or rights issued during period, price per warrant | $ 1 | |||||||||
IPO [Member] | ||||||||||
Payment to acquire restricted investments | $ 232,300,000 | |||||||||
Transaction costs | 25,995,754 | |||||||||
Underwriting fees | 4,600,000 | |||||||||
Deferred underwriting fee payable non current | 10,350,000 | |||||||||
Fair value of Founder shares | 12,546,764 | |||||||||
Offering costs | 1,003,989 | |||||||||
Reimbursement of offering costs from underwriters | $ 2,505,000 | |||||||||
Over-Allotment Option [Member] | ||||||||||
Gross proceeds from common stock issuance | $ 30,000,000 | |||||||||
Over-Allotment Option [Member] | Private Placement Warrant [Member] | ||||||||||
Stock issued during period, Shares | 570,000 | |||||||||
Class of warrants or rights issued during period, price per warrant | $ 1 | |||||||||
Private Placement And Over Allotment Option [Member] | Private Placement Warrant [Member] | Sponsor [Member] | ||||||||||
Class of warrants or rights issued during period, warrants | 7,345,000 | |||||||||
Private Placement [Member] | ||||||||||
Held aggregate of class B ordinary shares shares | 2,383,750 | |||||||||
Private Placement [Member] | Private Placement Warrant [Member] | Sponsor [Member] | ||||||||||
Class of warrants or rights issued during period, price per warrant | $ 1 | |||||||||
Common Class A [Member] | ||||||||||
Temporary equity, redemption price per share | $ 10.86 | $ 10.26 | ||||||||
Common Class A [Member] | Proposed Public Offering [Member] | ||||||||||
Stock issued during period, Shares | 20,000,000 | |||||||||
Shares issued, price per share | $ 10 | |||||||||
Common Class B [Member] | ||||||||||
Held aggregate of class B ordinary shares shares | 1,322,500 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Nov. 03, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value of Public Warrants at issuance | $ (7,345,000) | |||
Class A Ordinary Shares [Member] | ||||
Gross proceeds from Initial Public Offering, including sale of the over-allotment option | $ 230,000,000 | |||
Fair value of Public Warrants at issuance | (10,695,000) | |||
Offering costs allocated to Class A ordinary shares subject to possible redemption, net of reimbursement from underwriters | (24,329,399) | |||
Initial accretion on Class A ordinary shares subject to possible redemption amount | $ 9,554,011 | $ 37,324,399 | ||
Redemption of Class A ordinary shares | $ (130,320,660) | |||
Remeasurement ordinary shares subject to possible redemption amount | $ 3,631,005 | |||
Class A ordinary shares subject to possible redemption | $ 115,164,356 | $ 235,931,005 | $ 232,300,000 |
Significant Accounting Polici_5
Significant Accounting Policies (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net income allocable to Class A ordinary shares subject to possible redemption | $ 7,120,609 | $ 11,758,533 |
Non Redeemable Common Stock [Member] | Common Class A [Member] | ||
Net income allocable to Class A ordinary shares subject to possible redemption | $ 5,349,279 | $ 9,406,826 |
Basic and diluted weighted average shares outstanding | 17,364,551 | 23,000,000 |
Basic and diluted net income per share, Redeemable Class A ordinary share | $ 0.31 | $ 0.41 |
Non Redeemable Common Stock [Member] | Common Class B [Member] | ||
Net income allocable to Class A ordinary shares subject to possible redemption | $ 1,771,330 | $ 2,351,707 |
Basic and diluted weighted average shares outstanding | 5,750,000 | 5,750,000 |
Basic and diluted net income per share | $ 0.31 | $ 0.41 |
Significant Accounting Polici_6
Significant Accounting Policies (Detail Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred underwriting fee payable | $ 0 | $ 10,350,000 |
FDIC Limit | $ 250,000 | |
Warrants To Subscribe For Class A Common Stock [Member] | ||
Class of warrants or rights number of securities covered by the warrants or rights | 18,845,000 | |
Common Class A [Member] | ||
Temporary Equity, Shares Outstanding | 10,608,802 | 23,000,000 |
Additional paid-in capital, common stock | $ 9,554,011 | |
Accumulated deficit | $ (3,361,005) |
Initial Public Offering (Detail
Initial Public Offering (Detail Narrative) - $ / shares | 1 Months Ended | ||||
Oct. 18, 2021 | Dec. 31, 2023 | Jul. 31, 2023 | Nov. 03, 2021 | Oct. 13, 2021 | |
Common Stock, Shares Subscribed but Unissued | 150,000 | 115,500 | |||
Over-Allotment Option [Member] | Underwriters [Member] | |||||
Common Stock, Shares Subscribed but Unissued | 3,000,000 | 3,000,000 | |||
Common Class A [Member] | Proposed Public Offering [Member] | |||||
Stock issued during period, Shares | 20,000,000 | ||||
Shares issued, price per share | $ 10 | ||||
Common Stock, Conversion Basis | Each Unit consists of one Public Share and one-half of one Public Warrant | ||||
Common Class A [Member] | Proposed Public Offering [Member] | Public Warrant [Member] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.50 |
Private Placement (Detail Narra
Private Placement (Detail Narrative) - Private Placement Warrant [Member] - $ / shares | 12 Months Ended | ||
Nov. 03, 2021 | Dec. 31, 2023 | Jul. 18, 2023 | |
Class of warrants or rights issued during period, warrants | 6,775,000 | ||
Held aggregate of warrants shares | 2,383,750 | ||
Class of warrants or rights issued during period, price per warrant | $ 1 | ||
Stock issued during period, Shares | 3,000,000 | ||
Class of warrants or rights exercise price per unit | $ 11.50 | ||
Private placement warrants | 4,961,250 | ||
Over-Allotment Option [Member] | |||
Class of warrants or rights issued during period, price per warrant | $ 1 | ||
Stock issued during period, Shares | 570,000 |
Related Party Transactions (Det
Related Party Transactions (Detail Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 13, 2023 | Jun. 12, 2023 | Sep. 30, 2023 | Jul. 31, 2023 | Jul. 18, 2023 | Nov. 30, 2021 | Aug. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Oct. 17, 2023 | Sep. 06, 2023 | Jul. 13, 2023 | Jul. 07, 2023 | Jul. 06, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Nov. 03, 2021 | Mar. 15, 2021 | |
Stock forfeited during period, Shares | 1,437,500 | |||||||||||||||||
Common stock, shares subscribed but unissued | 115,500 | 150,000 | ||||||||||||||||
Share Price | $ 0.07 | $ 0.03 | $ 0.03 | $ 0.03 | ||||||||||||||
Promissory notes - related parties | $ 2,000,000 | $ 0 | ||||||||||||||||
Proceeds from Loan from sponsor | $ 250,000 | |||||||||||||||||
Accounts payable | 238,824 | $ 99,514 | ||||||||||||||||
Unsecured promissory note | $ 2,125,000 | $ 375,000 | 375,000 | |||||||||||||||
Net proceeds | 1,625,000 | |||||||||||||||||
Estimated fair value of founder shares at the closing of public offering | $ 13,562,614 | |||||||||||||||||
Estimated fair value of founder shares at the closing of public offering per share | $ 7.07 | |||||||||||||||||
Remaining procceds from promissory notes | $ 500,000 | |||||||||||||||||
Offering Costs For Shares Issued To The Founder | $ 1,015,850 | |||||||||||||||||
Working Capital Loan [Member] | ||||||||||||||||||
Debt instrument, convertible, carrying amount of equity component | $ 1,500,000 | |||||||||||||||||
David Barksdale, Greg Boyd, David Jones, Alex Parker, Steven Rogers, and Robert Willis | ||||||||||||||||||
Common stock, shares subscribed but unissued | 150,000 | |||||||||||||||||
Fair value of the Founder Shares attributable to the such individuals | $ 1,116,000 | |||||||||||||||||
Share Price | $ 7.44 | |||||||||||||||||
Private Placement [Member] | ||||||||||||||||||
Held aggregate of class B ordinary shares shares | 2,383,750 | |||||||||||||||||
Share Price | $ 1 | |||||||||||||||||
Net drawdown from sponsor | $ 158,968 | |||||||||||||||||
Prior Sponsor Working Capital Loan balance due | $ 158,968 | |||||||||||||||||
Securities Purchase Agreement [Member] | ||||||||||||||||||
Common stock, shares subscribed but unissued | 3,046,634 | |||||||||||||||||
Private placement warrants | 4,961,250 | |||||||||||||||||
Warrants to purchased | 4,961,250 | |||||||||||||||||
Number of ordinary shares transferred | 1,380,866 | |||||||||||||||||
Accounts payable | $ 200,000 | |||||||||||||||||
Additional deposit into Trust Account | $ 125,000 | |||||||||||||||||
Monthly deposit | $ 125,000 | |||||||||||||||||
Common Class B [Member] | ||||||||||||||||||
Held aggregate of class B ordinary shares shares | 1,322,500 | |||||||||||||||||
Common stock shares outstanding | 5,750,000 | 5,750,000 | ||||||||||||||||
Common Class A [Member] | ||||||||||||||||||
Common stock shares outstanding | 0 | 0 | ||||||||||||||||
Class B Common Share [Member] | ||||||||||||||||||
Held aggregate of class B ordinary shares shares | 1,322,500 | |||||||||||||||||
Sponsor [Member] | Service And Administrative Fees [Member] | ||||||||||||||||||
Related party transaction, amounts of transaction | $ 10,000 | |||||||||||||||||
Sponsor [Member] | Service And Administrative Fees [Member] | Accrued Liabilities [Member] | ||||||||||||||||||
Accounts payable due to related party current | $ 204,516 | $ 144,516 | ||||||||||||||||
Sponsor [Member] | One Of The Anchor Investors [Member] | Founder Share [Member] | ||||||||||||||||||
Sale of stock, number of shares issued in transaction | 333,333 | |||||||||||||||||
Sale of stock, price per share | $ 3 | |||||||||||||||||
Sponsor [Member] | Other Anchor Investors [Member] | Founder Share [Member] | ||||||||||||||||||
Sale of stock, number of shares issued in transaction | 1,585,000 | |||||||||||||||||
Sale of stock, price per share | $ 0.01 | |||||||||||||||||
Sponsor [Member] | Common Class B [Member] | ||||||||||||||||||
Stock forfeited during period, Shares | 1,437,500 | |||||||||||||||||
Common stock, shares subscribed but unissued | 7,187,500 | |||||||||||||||||
Anchor Investors [Member] | Common Class A [Member] | Proposed Public Offering [Member] | ||||||||||||||||||
Share Price | $ 12 | $ 10 | ||||||||||||||||
Chief Financial Officer and Chief Operating Officer [Member] | ||||||||||||||||||
Stock forfeited during period, Shares | 38,500 | |||||||||||||||||
Common stock, shares subscribed but unissued | 50,000 | 50,000 | ||||||||||||||||
Directors [Member] | ||||||||||||||||||
Common stock, shares subscribed but unissued | 11,500 | |||||||||||||||||
Maximum [Member] | Before Forfeiture [Member] | Sponsor [Member] | Common Class B [Member] | ||||||||||||||||||
Common stock shares outstanding | 7,187,500 | |||||||||||||||||
Minimum [Member] | Before Forfeiture [Member] | Sponsor [Member] | Common Class B [Member] | ||||||||||||||||||
Common stock shares outstanding | 5,750,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jun. 23, 2023 | Dec. 31, 2023 | Sep. 06, 2023 | Jul. 31, 2023 | Jul. 13, 2023 | Jul. 07, 2023 | Jul. 06, 2023 | |
Reimbursable costs | $ 98,089 | ||||||
Underwriting discount payable per unit | $ 0.20 | ||||||
Common stock, shares subscribed but unissued | 150,000 | 115,500 | |||||
Share Price | $ 0.07 | $ 0.03 | $ 0.03 | $ 0.03 | |||
Business Acquisition, Transaction Costs | $ 525,000 | ||||||
Private Placement [Member] | |||||||
Share Price | $ 1 | ||||||
Forward Purchase Agreements [Member] | Investor [Member] | |||||||
Debt instrument committed to be purchased by investors | $ 25,000,000 | ||||||
Forward Purchase Agreements [Member] | Common Class A [Member] | Private Placement [Member] | |||||||
Common stock, shares subscribed but unissued | 4,500,000 | ||||||
Share Price | $ 10 | ||||||
Underwriting Agreement [Member] | |||||||
Waived off deferred underwriting commission | $ 10,350,000 | ||||||
Derecognized deferred underwriting fee payable | 10,350,000 | ||||||
Forgiveness of deferred underwriting fee | 9,868,725 | ||||||
Gain from extinguishment of liability | $ 481,275 | ||||||
Deferred compensation liability classified noncurrent per unit | $ 0.45 |
Warrant Liability (Detail Narra
Warrant Liability (Detail Narrative) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2023 | Sep. 06, 2023 | Jul. 13, 2023 | Jul. 07, 2023 | Jul. 06, 2023 | |
Class of warrant or right, outstanding | 18,845,000 | ||||
Share Price | $ 0.07 | $ 0.03 | $ 0.03 | $ 0.03 | |
Public Warrants [Member] | |||||
Class of warrant or right, outstanding | 11,500,000 | ||||
Number of days after which the warrants are exercisable from the consummation of initial business combination | 30 months | ||||
Number of days after which the warrants are exercisable from the closing of initial public offering | 12 months | ||||
Number of days within which the securities shall be registered with the securities exchange commission from the consummation of initial business combination | 20 months | ||||
Number of days within which the securities registration shall be made effective from the consummation of business combination | 60 days | ||||
Shares issued, price per share | $ 11.50 | ||||
Class of warrants or rights redemption price per warrant | $ 0.01 | ||||
Minimum notice period to be given to the holders of warrant prior to redemption | 30 days | ||||
Public Warrants [Member] | Prospective Warrant Redemption [Member] | |||||
Number of trading days for determining the share price | 20 months | ||||
Number of consecutive trading days for determining the share price | 30 months | ||||
Share Price | $ 18 | ||||
Public Warrants [Member] | Event Triggering Adjustment To Exercise Price Of Warrants [Member] | |||||
Number of consecutive trading days for determining the share price | 20 months | ||||
Share Price | $ 18 | ||||
Shares issued, price per share | $ 9.20 | ||||
Proceeds to be used for effectuating business combination as a percentage of the total proceeds | 60% | ||||
Volume weighted average price per share | $ 9.20 | ||||
Adjusted exercise price of warrants percentage | 115% | ||||
Adjusted share price percentage | 180% | ||||
Private Placement Warrants [Member] | |||||
Class of warrant or right, outstanding | 7,345,000 | ||||
Lock in period of warrants | 30 days |
Shareholders Deficit (Detail Na
Shareholders Deficit (Detail Narrative) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock shares authorized | 1,000,000 | 1,000,000 |
Preferred stock par value | $ 0.0001 | $ 0.0001 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common Class A [Member] | ||
Common stock shares authorized | 90,000,000 | 90,000,000 |
Common stock par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock shares issued | 0 | 0 |
Common stock shares outstanding | 0 | 0 |
Temporary Equity, Shares Outstanding | 10,608,802 | 23,000,000 |
Common Class B [Member] | ||
Common stock shares authorized | 10,000,000 | 10,000,000 |
Common stock par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock shares issued | 5,750,000 | 5,750,000 |
Common stock shares outstanding | 5,750,000 | 5,750,000 |
Preferred Share [Member] | ||
Preferred stock shares authorized | 1,000,000 | 1,000,000 |
Preferred stock par value | $ 0.0001 | $ 0.0001 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Prospective Conversion From Class B To Class A Common Stock [Member] | ||
Common stock shares outstanding on conversion from one class to another | 20% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Investments held in Trust Account | $ 235,933,496 | |
Warrant liability | $ 376,900 | 565,350 |
Total | 235,933,496 | |
Fair Value, Inputs, Level 1 [Member] | ||
Investments held in Trust Account | 235,933,496 | |
Warrant liability | 230,000 | 345,000 |
Total | 235,933,496 | |
Fair Value, Inputs, Level 2 [Member] | ||
Investments held in Trust Account | 0 | |
Warrant liability | 146,900 | 220,350 |
Total | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Investments held in Trust Account | 0 | |
Warrant liability | 0 | 0 |
Total | 0 | |
Private Placement Warrants [Member] | ||
Warrant liability | 146,900 | 220,350 |
Private Placement Warrants [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Warrant liability | 0 | 0 |
Private Placement Warrants [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Warrant liability | 146,900 | 220,350 |
Private Placement Warrants [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Warrant liability | 0 | 0 |
Public Warrant [Member] | ||
Warrant liability | 230,000 | 345,000 |
Public Warrant [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Warrant liability | 230,000 | 345,000 |
Public Warrant [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Warrant liability | 0 | 0 |
Public Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Warrant liability | $ 0 | $ 0 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - USD ($) | Sep. 06, 2023 | Jul. 13, 2023 | Jul. 07, 2023 | Jul. 06, 2023 | Dec. 31, 2023 |
Conversion price | $ 1 | $ 1 | $ 1 | $ 1 | |
Share Price | $ 0.07 | $ 0.03 | $ 0.03 | $ 0.03 | |
Volatility | 3.30% | 3.20% | 3.20% | 3.20% | |
Term | 1 year 1 month 13 days | 1 year 3 months 7 days | 1 year 3 months 10 days | 1 year 3 months 14 days | |
Risk-free rate | 5.39% | 5.09% | 5.28% | 5.31% | |
Dividend yield | 0% | 0% | 0% | 0% | |
Number of steps | 50 | 50 | 50 | 50 | |
Drawdown amount - cash value | $ 158,968 | $ 98,089 | $ 19,602 | $ 39,585 | $ 436,317 |
Fair value | $ 58,992 | $ 2,717 | $ 540 | $ 1,090 | |
July 13, 2023 [Member] | |||||
Conversion price | $ 1 | ||||
Share Price | $ 0.03 | ||||
Volatility | 3.20% | ||||
Term | 1 year 3 months 7 days | ||||
Risk-free rate | 5.43% | ||||
Dividend yield | 0% | ||||
Number of steps | 50 | ||||
Drawdown amount - cash value | $ 1,692 | ||||
Fair value | $ 47 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Change in fair value of Private Placement Warrants | $ (73,450) | |
Transfer of Private Placement Warrants from Level 3 to Level 2 | $ (146,900) | |
Proceeds from drawdown - cash value | 158,968 | |
Change in fair value of convertible note | (99,976) | |
Forgiveness of convertible note moved to additional paid in capital | 58,992 | |
Beginning Balance, Fair value | 220,350 | (3,819,400) |
Private Placement Warrant [Member] | Warrants [Member] | ||
Change in fair value of Private Placement Warrants | (73,450) | (3,599,050) |
Transfer of Private Placement Warrants from Level 3 to Level 2 | (146,900) | (220,350) |
Proceeds from drawdown - cash value | 0 | |
Change in fair value of convertible note | 0 | |
Forgiveness of convertible note moved to additional paid in capital | 0 | |
Beginning Balance, Fair value | 220,350 | 3,819,400 |
Ending Balance, Fair value | 0 | 0 |
Convertible promissory note - Prior Sponsor Working Capital Loan [Member] | ||
Proceeds from drawdown - cash value | 158,968 | |
Change in fair value of convertible note | $ (99,976) | |
Forgiveness of convertible note moved to additional paid in capital | $ (58,992) |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Fair Value Measurements | |
Fair value of additional paid in capital | $ 68,214 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - $ / shares | 1 Months Ended | ||||
Sep. 06, 2023 | Jul. 13, 2023 | Jul. 07, 2023 | Jul. 06, 2023 | Jul. 18, 2023 | |
Share Price | $ 0.07 | $ 0.03 | $ 0.03 | $ 0.03 | |
Volatility | 3.30% | 3.20% | 3.20% | 3.20% | |
Term | 1 year 1 month 13 days | 1 year 3 months 7 days | 1 year 3 months 10 days | 1 year 3 months 14 days | |
July 18, 2023 [Member] | |||||
Share Price | $ 10.46 | ||||
Discount rate using Finnerty Model | 1.10% | ||||
Volatility | 3.20% | ||||
Term | 2 years 3 months 18 days | ||||
Fair value | $ 1.03 |
Share-Based Compensation (Det_2
Share-Based Compensation (Detail Narrative) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Jul. 31, 2023 | Jul. 18, 2023 | Mar. 31, 2021 | |
Share-based compensation expense | $ 35,535 | $ 0 | |||
Common stock, shares subscribed but unissued | 150,000 | 115,500 | |||
Chief Financial Officer and Chief Operating Officer [Member] | |||||
Common stock, shares subscribed but unissued | 50,000 | 50,000 | |||
Former Directors [Member] | July 18, 2023 [Member] | |||||
Share-based compensation expense | $ 35,535 | ||||
Retained founder shares | 34,500 | 34,500 | |||
Common stock, shares subscribed but unissued | 19,250 | 115,500 | |||
Description of retained shares occuring share based compensation | the former directors retained 5,750 each for a total of 34,500 Founder Shares. The 115,500 Founder Shares transferred to Chunyi (Charlie) Hao requires him to be a director at the time of the consummation of a Business Combination or the 115,500 Founder Shares will be transferred back to the former directors. Under ASC 718, the 115,500 Founder Shares transferred to Chunyi (Charlie) Hao have a performance condition that is not probable of occurring at the date he received the 115,500 Founder Shares, therefore no share based compensation has been recorded for the 115,500 Founder Shares |
Subsequent Events (Detail Narra
Subsequent Events (Detail Narrative) - USD ($) | 1 Months Ended | ||||
May 03, 2024 | Jan. 05, 2024 | Apr. 26, 2024 | Sep. 30, 2023 | Mar. 18, 2024 | |
Remaining procceds from promissory notes | $ 500,000 | ||||
Subsequent Event [Member] | |||||
Monthly deposit | $ 125,000 | ||||
Remaining procceds from promissory notes | $ 500,000 | ||||
Subsequent Event [Member] | Helport [Member] | |||||
Promissory Notes received | $ 200,000 | $ 2,000,000 | |||
Convertible promissory notes Issued | $ 400,000 | $ 4,000,000 |