I apologize, but it seems that you haven’t provided the financial report (10-Q) for me to summarize. Please share the report, and I’ll be happy to assist you in summarizing the key financial figures, main events, and significant developments in a single paragraph.
Overview
APx Cap Acquisition Corp. is a blank check company incorporated in May 2021 for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. The company completed its initial public offering (IPO) in December 2021, raising $172.5 million.
The Proposed Business Combination
On March 25, 2024, APx Cap Acquisition Corp. entered into a Business Combination Agreement with OmnigenicsAI Corp and Heritas Merger Sub Limited to combine their businesses. The key terms of the proposed transaction are:
Results of Operations
Since its IPO, APx Cap Acquisition Corp.’s activity has been limited to evaluating potential business combination targets. The company has not generated any operating revenue and expects to incur increased expenses as a public company.
For the three months ended March 31, 2024, the company had a net loss of $2.2 million, primarily due to $1.3 million in operating costs and a $1.8 million unrealized loss on the change in fair value of warrants, offset by $813,000 in interest income.
For the three months ended March 31, 2023, the company had a net loss of $192,000, which included $920,000 in operating costs, $715,000 in unrealized losses on warrants, and $1.5 million in interest income.
Factors That May Adversely Affect Results
APx Cap Acquisition Corp.’s results and ability to complete a business combination could be adversely impacted by various factors, including economic uncertainty, volatility in financial markets, supply chain disruptions, inflation, and geopolitical instability.
Liquidity and Capital Resources
As of March 31, 2024, the company had $568 in cash and a working capital deficit of $2.4 million. The company’s liquidity needs have been satisfied through the IPO proceeds and a promissory note. However, management believes the company will not have sufficient working capital to meet its needs through the consummation of a business combination or one year from the filing date. The company may need to obtain alternative liquidity sources, which may not be available.
The company has until December 2024 (with potential extensions) to complete a business combination, after which it will be required to liquidate if a deal is not reached. This raises substantial doubt about the company’s ability to continue as a going concern.
Critical Accounting Policies
Key accounting policies include the treatment of warrant liabilities, classification of Class A ordinary shares subject to possible redemption, and the calculation of net income per ordinary share. The company also qualifies as an “emerging growth company” under the JOBS Act, allowing it to delay adoption of certain new accounting standards.
Overall, APx Cap Acquisition Corp. is focused on completing the proposed business combination with OmnigenicsAI, but faces liquidity challenges and risks that could impact its ability to do so successfully.