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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2023

OR

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

For the transition period from                       to                      

Commission File Number: 001-41047

CHAIN BRIDGE I

(Exact name of registrant as specified in its charter)

Cayman Islands

    

95-1578955

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer

Identification Number) 

330 Primrose Road, Suite 500

Burlingame, California

    

94010

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (202) 656-4257

Not Applicable

(Former name or former address, if changed since last report)

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

Title of Each Class:

    

Trading Symbol:

    

Name of Each Exchange on Which Registered:

Units, each consisting of one Class A ordinary share, and one-half of one redeemable Warrant to acquire one Class A ordinary share

 

CBRGU

 

The Nasdaq Global Market

Class A ordinary shares, par value $0.0001 per share

 

CBRG

 

The Nasdaq Global Market

Redeemable Warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50

 

CBRGW

 

The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No 

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

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

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

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

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

As of August 2, 2023, there are 38,999 units, each unit consisting of one Class A ordinary share, par value $0.0001 per share, and one-half of one redeemable warrant, 4,112,135 Class A ordinary shares, and 5,750,000 Class B ordinary shares, par value $0.0001 per share, and 22,049,993 warrants of the company issued and outstanding.

CHAIN BRIDGE I

Form 10-Q

For the Quarter Ended June 30, 2023

Table of Contents

Page

PART I. FINANCIAL INFORMATION

Item 1.

Condensed Interim Financial Statements

Condensed Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022

1

Unaudited Condensed Interim Statements of Operations for the three and six months ended June 30, 2023 and 2022

2

Unaudited Condensed Interim Statements of Changes in Shareholders’ Deficit for the three and six months ended June 30, 2023 and 2022

3

Unaudited Condensed Interim Statements of Cash Flows for the six months ended June 30, 2023 and 2022

4

Notes to Unaudited Condensed Interim Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

25

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

29

Item 4.

Controls and Procedures

29

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings

30

Item 1A.

Risk Factors

30

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities

30

Item 3.

Defaults Upon Senior Securities

30

Item 4.

Mine Safety Disclosures

30

Item 5.

Other Information

30

Item 6.

Exhibits

31

i

PART I. FINANCIAL INFORMATION

Item 1.      Condensed Interim Financial Statements

CHAIN BRIDGE I

CONDENSED BALANCE SHEETS

    

June 30, 2023

December 31, 2022

(Unaudited)

Assets

Current assets:

Cash

$

36,546

$

116,320

Prepaid expenses

 

190,741

 

322,292

Total current assets

227,287

438,612

Investments held in Trust Account

 

44,193,476

 

237,796,114

Total Assets

$

44,420,763

$

238,234,726

Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit:

 

  

 

  

Current liabilities:

Accounts payable

$

194,281

$

27,056

Accrued expenses

25,709

5,433

Total current liabilities

 

219,990

 

32,489

Convertible note - related party

 

1,912,992

 

1,431,546

Derivative liabilities

1,304,711

2,547,235

Deferred legal fees

267,420

267,420

Total Liabilities

3,705,113

4,278,690

Commitments and Contingencies (Note 5)

 

  

 

  

Class A ordinary shares subject to possible redemption; $0.0001 par value; 4,151,134 and 23,000,000 shares at redemption value of $10.622 and $10.335 per share at June 30, 2023 and December 31, 2022, respectively

44,093,476

237,696,114

 

 

Shareholders’ deficit:

 

 

Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding

 

 

Class A ordinary shares, $0.0001 par value; 479,000,000 shares authorized; no non-redeemable shares issued or outstanding

 

 

Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,750,000 shares issued and outstanding

 

575

 

575

Additional paid-in capital

 

 

Accumulated deficit

 

(3,378,401)

 

(3,740,653)

Total shareholders’ deficit

 

(3,377,826)

 

(3,740,078)

Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit

$

44,420,763

$

238,234,726

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

1

CHAIN BRIDGE I

UNAUDITED CONDENSED INTERIM STATEMENTS OF OPERATIONS

For the Three Months Ended June 30, 

For the Six Months Ended June 30, 

    

2023

    

2022

    

2023

    

2022

General and administrative expenses

$

528,502

$

226,016

$

763,426

$

551,948

General and administrative expenses - related party

90,000

60,000

180,000

120,000

Loss from operations

(618,502)

(286,016)

(943,426)

(671,948)

Other income (expense):

Change in fair value of derivative liabilities

792,821

3,094,451

1,242,524

5,877,981

Change in fair value of convertible note – related party

(6,886)

45,956

63,154

41,748

Income from investments held in Trust Account

1,638,070

285,925

4,251,387

364,464

Total other income (expense)

2,424,005

3,426,332

5,557,065

6,284,193

Net income

$

1,805,503

$

3,140,316

$

4,613,639

$

5,612,245

 

 

 

 

Weighted average shares outstanding of Class A ordinary shares, basic and diluted

 

13,886,263

 

23,000,000

 

18,417,955

 

23,000,000

Basic and diluted net income per share, Class A ordinary shares

$

0.09

$

0.11

$

0.19

$

0.20

Weighted average shares outstanding of Class B ordinary shares, basic and diluted

5,750,000

5,750,000

5,750,000

5,750,000

Basic and diluted net income per share, Class B ordinary shares

$

0.09

$

0.11

$

0.19

$

0.20

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

2

CHAIN BRIDGE I

UNAUDITED CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023

Ordinary Shares

Additional

Total

Class A

Class B

Paid-in

Accumulated

Shareholders’

    

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Deficit

    

Deficit

Balance - December 31, 2022

$

5,750,000

$

575

$

$

(3,740,653)

$

(3,740,078)

Net income

 

 

 

 

2,808,136

 

2,808,136

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

(2,613,317)

(2,613,317)

Balance - March 31, 2023 (unaudited)

5,750,000

575

(3,545,834)

(3,545,259)

Fair value of transferred Class B Shares (non-redemption agreements)

(4,802,931)

(4,802,931)

Deemed capital contribution from non-redemption agreements

4,802,931

4,802,931

Net income

1,805,503

1,805,503

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

(1,638,070)

(1,638,070)

Balance - June 30, 2023 (unaudited)

 

$

5,750,000

$

575

$

$

(3,378,401)

$

(3,377,826)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022

Ordinary Shares

Additional

Total

Class A

Class B

Paid-in

Accumulated

Shareholders’

    

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Deficit

    

Deficit

Balance - December 31, 2021

$

5,750,000

$

575

$

$

(11,353,029)

$

(11,352,454)

Net income

2,471,929

2,471,929

Balance - March 31, 2022 (unaudited)

5,750,000

575

(8,881,100)

(8,880,525)

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

(283,462)

(283,462)

Net income

3,140,316

3,140,316

Balance - June 30, 2022 (unaudited)

 

$

5,750,000

$

575

$

$

(6,024,246)

$

(6,023,671)

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

3

CHAIN BRIDGE I

UNAUDITED CONDENSED INTERIM STATEMENTS OF CASH FLOWS

    

For the Six Months Ended

June 30,

2023

2022

Cash Flows from Operating Activities:

Net income

$

4,613,639

$

5,612,245

Adjustments to reconcile net income to net cash used in operating activities:

 

Change in fair value of derivative liabilities

(1,242,524)

(5,877,981)

Change in fair value of convertible note - related party

(63,154)

(41,748)

Income from investments held in Trust Account

(4,251,387)

(364,464)

Changes in operating assets and liabilities:

 

Prepaid expenses

131,551

270,657

Accounts payable

167,225

Accrued expenses

20,276

 

(36,306)

Due to related party

630

Net cash used in operating activities

(624,374)

 

(436,967)

Cash Flows from Investing Activities:

Cash withdrawn from Trust Account in connection with redemption

197,854,025

Net cash provided by investing activities

197,854,025

 

  

Cash Flows from Financing Activities:

 

  

Proceeds from convertible note - related party

544,600

 

Redemption of Class A ordinary shares

(197,854,025)

Net cash used in financing activities

(197,309,425)

 

 

  

Net change in cash

(79,774)

 

(436,967)

Cash — beginning of the period

116,320

 

740,639

Cash — end of the period

$

36,546

$

303,672

 

Supplemental disclosure of noncash financing activities:

 

Deemed capital contribution from non-redemption agreements

$

4,802,931

$

Fair value of transferred Class B shares (non-redemption agreements)

$

(4,802,931)

$

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

$

4,251,387

$

283,462

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

4

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

Note 1 — Description of Organization and Business Operations

Chain Bridge I (the “Company”) is a blank check company incorporated as a Cayman Islands exempted company on January 21, 2021. The Company was incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses that the Company has not yet identified (“Business Combination”). Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to focus on partnering with a technology company that will advance U.S. national security and intelligence interests.

As of June 30, 2023, the Company had not yet commenced operations. All activity for the period from January 21, 2021 (inception) through June 30, 2023 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), which is described below, and since the closing of the Initial Public Offering, the search for a prospective 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 31st as its fiscal year end.

The Company’s sponsor is Chain Bridge Group, a Cayman Islands exempted limited liability company (the “Sponsor”). The registration statement for the Company’s Initial Public Offering was declared effective on November 9, 2021. On November 15, 2021, the Company consummated its Initial Public Offering of 23,000,000 units (the “Units” and, with respect to the Class A ordinary shares included in the Units being offered, the “Public Shares”), including 3,000,000 additional Units to cover over-allotments (the “Over-Allotment Units”), at $10.00 per Unit, generating gross proceeds of $230.0 million, and incurring offering costs of approximately $5.7 million, of which approximately $254,000 was for offering costs allocated to derivative warrant liabilities.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the private placement (“Private Placement”) of 10,550,000 warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”), at a price of $1.00 per Private Placement Warrant to the Sponsor and CB Co-Investment LLC (“CB Co-Investment”), generating proceeds of approximately $10.6 million (Note 4).

In addition, upon closing of the Initial Public Offering, CB Co-Investment loaned the Company $1,150 thousand at no interest (the “CB Co-Investment Loan”). On November 16, 2022, the Sponsor agreed to loan the Company up to $1,200 thousand pursuant to an unsecured non-interest bearing convertible promissory note (“Additional Convertible Note”). Such Additional Convertible Note will not be repaid in the event that the Company is unable to close a Business Combination unless there are funds available outside the Trust Account to do so. Such Additional Convertible Note would either be paid upon consummation of the Company’s initial Business Combination, or, at the discretion of Sponsor, converted into additional warrants at a price of $1.00 per warrant, which warrants will be identical to the Private Placement Warrants. As of June 30, 2023 and December 31, 2022, the Company had an outstanding balance of $894,600 and $350,000, respectively, under the Additional Convertible Note. (Note 5).

Upon the closing of the Initial Public Offering, $234.6 million ($10.20 per Unit) of net proceeds, including the net proceeds of the Initial Public Offering, certain of the proceeds of the Private Placement and the proceeds from the convertible promissory note issued to CB Co-Investment, were placed in a trust account (“Trust Account”) with Continental Stock Transfer & Trust Company acting as trustee and invested in United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended, or the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account as described below.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

The Company’s management has broad discretion with respect to the specific application of the net proceeds of its Initial Public Offering and the sale of Private Placement Warrants and the proceeds from the promissory note issued to CB Co-Investment, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The Company’s initial Business Combination must be with one or more operating businesses or assets with a fair value equal to at least 80% of the net assets held in the Trust Account (excluding taxes payable on the interest earned on the trust account) at the time the Company signs a definitive agreement in connection with the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the partner business or otherwise acquires a controlling interest in the partner business sufficient for it not to be required to register as an investment company under the Investment Company Act.

The Company will provide its holders of the Public Shares (the “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 general 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. The Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account. The Company expects the pro rata price to be $10.20 per share (such amount may be increased by $0.10 per Public Share for each three-month extension of the time to consummate the initial Business Combination, as described below), plus 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). These Public Shares will be recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity” (“ASC 480”). In such case, the Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and a majority of the shares voted are voted in favor of the Business Combination. If a shareholder vote is not required by 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 the Amended and Restated Memorandum and Articles of Association, which was adopted by the Company upon the consummation of the Initial Public Offering (the “Amended and Restated Memorandum and Articles of Association”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (the “SEC”), and file tender offer documents with the SEC prior to completing a Business Combination. If, however, a shareholder approval of the transactions is required by applicable law or stock exchange listing requirements, or the Company decides to obtain shareholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. 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. If the Company seeks shareholder approval in connection with a Business Combination, the holders of the Founder Shares prior to this Initial Public Offering (the “Initial Shareholders”), and the executive officers and directors of the Company, agreed to vote their Founder Shares (as defined in Note 5) and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination. In addition, the Initial Shareholders agreed to waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of a Business Combination. In addition, the Company agreed not to enter into a definitive agreement regarding an initial Business Combination without the prior consent of the Sponsor.

Notwithstanding the foregoing, the Company’s Amended and Restated Memorandum and Articles of Association 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% or more of the Class A ordinary shares sold in the Initial Public Offering, without the prior consent of the Company.

As a result of the amendment to the Company’s amended and restated articles of association approved by the Company’s shareholders, as discussed below, the Company has until November 15, 2023 (the “Extended Date”) to consummate an initial Business Combination. However, if the Company anticipates that it may not be able to consummate the initial Business Combination by the Extended Date, the Company may, by resolution of its board if requested by the Sponsor, extend the period of time to consummate a Business Combination up to three times, each by an additional month up to February 15, 2024 (the “Additional Extended Date”), the date (the “Termination Date”) by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities (a “Business Combination”), the Company must (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

but not more than ten business days thereafter, redeem the Class A ordinary shares sold in the Company’s initial public offering (the “Public Shares”); and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law.

The Company’s Sponsor, officers and directors agreed not to propose an amendment to the Company’s Amended and Restated Memorandum and Articles of Association (A) to modify the substance or timing of the Company’s obligation to allow the redemption of its Public Shares in connection with a Business Combination or to redeem 100% of its Public Shares if the Company does not complete a Business Combination within 24 months from the closing of the Initial Public Offering or (B) with respect to any other provisions relating to shareholders’ rights or pre-initial business combination activity, unless the Company provides the Public Shareholders with the opportunity to redeem their Class A ordinary shares in conjunction with any such amendment.

If the Company is unable to complete a Business Combination within 24 months, or November 15, 2023 (or within up to 27 months, if elected to further extend the date to consummate an initial business combination after the Extended Date up to three times, by an additional month each time, up to February 15, 2024), the Company will (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem the Public Shares, at a per share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its income taxes, if any (less up to $100,000 of interest to pay dissolution expenses), divided by the number of the then-outstanding Public Shares, which redemption will completely extinguish Public Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the board of directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii), to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law.

On May 12, 2023, at an extraordinary general meeting of its shareholders (the “Special Meeting”) the Company’s shareholders approved a proposal to amend the Company’s existing amended and restated articles of association to extend from May 15, 2023 to November 15, 2023 (the “Extended Date”) and to allow the board of directors of the Company, without another shareholder vote, to elect to further extend the date to consummate an initial business combination after the Extended Date up to three times, by an additional month each time, up to February 15, 2024, the date by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities, the Company must: (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the shares sold in the Company’s initial public offering; and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. In connection with such shareholder vote, the holders of an aggregate of 18,848,866 Class A ordinary shares of the Company exercised their right to redeem their shares for an aggregate of approximately $197,854,025 in cash held in the Trust Account.

In connection with the Special Meeting, the Company, the Sponsor and CB Co-Investment have entered into non-redemption agreements (the “Non-Redemption Agreements”), with several unaffiliated third parties (“Investors”), pursuant to which such third parties agreed not to redeem (or to validly rescind any redemption requests on) an aggregate of 4,000,000 Public Shares (“Non-Redeemed Shares”) in connection with the Special Meeting. In exchange for the foregoing commitments not to redeem such Public Shares, the Sponsor and CB Co-Investment, as applicable, agreed to transfer an aggregate of 1,000,000 ordinary shares of the Company held by the Sponsor or CB Co-Investment, as applicable, plus up to an additional aggregate of 500,000 ordinary shares of the Company held by the Sponsor or CB Co-Investment, as applicable, with such number of additional ordinary shares of the Company to be determined based upon the date of the consummation of the Company’s initial business combination immediately following consummation of an initial business combination. On June 13, 2023, the Company received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) indicating that since the Company’s aggregate market value of its outstanding warrants was less than $1 million, the Company was no longer in compliance with the Nasdaq Global Market continued listing criteria set forth in Listing Rule 5452(b)(C), which requires the Company to maintain an aggregate market value of its outstanding warrants of at least $1 million (the “Notice”). The Notice additionally indicates that the Company, pursuant to the Listing Rules had until July 28, 2023, to submit a plan to regain compliance. The Company did not submit to Nasdaq such a plan to regain compliance.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

On June 14, 2023, the board of directors of the Company approved the grant of 30,000 restricted stock units (“RSUs”) to Mr. Roger Lazarus as compensation for services provided to the Company. Such RSUs will be granted to Mr. Lazarus upon the effectiveness of a registration statement filed by the Company with the U.S. Securities and Exchange Commission covering the RSUs and the shares issuable upon settlement of the RSUs, subject, in each case, to the Letter Agreement. (see Note 6).

The Initial Shareholders agreed to waive their liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the Initial Shareholders should acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. The underwriters agreed to waive their rights to the Marketing Fee (see Note 6) held in the Trust Account in the event the Company does not complete a Business Combination within in the Combination Period and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Company’s Public Shares. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution in the Trust Account will be less than the $10.20 per share initially held in the Trust Account. In order to protect the amounts held in the Trust Account, the Sponsor agreed that it will 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 partner business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or business combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.20 per Public Share and (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 $10.20 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective partner business who executed a waiver of any and all rights to the monies held in 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”). In the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have vendors, service providers (except the Company’s independent registered public accounting firm), prospective partner 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. There can be no guarantee that the Company will be successful in obtaining such waivers from its targeted vendors and service providers.

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 of 2002, 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.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

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 statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Risks and Uncertainties

Management continues to evaluate the impact of the COVID-19 pandemic, including new variant strains of the underlying virus, current or anticipated military conflict, including between Russia and Ukraine, terrorism, sanctions or other geopolitical events as well as adverse developments in the economy and capital markets, including rising energy costs, inflation and interest rates, in the United States and globally, on the industry and has concluded that while it is reasonably possible that these events could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of the condensed interim financial statements. The condensed interim financial statements do not include any adjustments that might result from the outcome of this uncertainty.

On March 10, 2023, Silicon Valley Bank (“SVB”) was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver. On March 12, 2023, the FDIC, the Department of Treasury and the Federal Reserve issued a joint statement indicating that actions would be taken to complete the FDIC’s resolution of SVB in a manner that protects depositors. The financial institution was reopened by the FDIC on March 13, 2023, with customers having full access to their deposits and debt facilities as at the time of the closure. On March 26, 2023, the FDIC entered into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association with First Citizens Bank & Trust Company. Management has evaluated the situation and since the Company is not a borrower or party to any such instruments with SVB or any other financial institution currently in receivership, there is no material impact on the condensed interim financial statements of the Company.

On May 1, 2023, First Republic Bank was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank. Management has evaluated the situation and determined there is no material impact on the condensed interim financial statements of the Company.

Liquidity and Capital Resources

As of June 30, 2023, the Company had approximately $37,000 in its operating bank account and working capital of approximately $7,000.

The Company’s liquidity needs prior to the consummation of the Initial Public Offering were satisfied through the payment of $25,000 from the Sponsor and CB Co-Investment to cover for certain expenses on behalf of the Company in exchange for issuance of Founder Shares (as defined in Note 5) and a loan from related party of approximately $244,000. The Company fully repaid the Note on November 17, 2021. Subsequent to the consummation of the Initial Public Offering, the Company’s liquidity has been satisfied through the net proceeds from the consummation of the Initial Public Offering, the Private Placement held outside of the Trust Account and the issuance of the Convertible Notes. As of June 30, 2023 and December 31, 2022, there was $2,044,600 and $1,500,000, respectively, outstanding under the working capital loans (convertible notes).

The Company has until November 15, 2023 (the “Extended Date”) to consummate an initial Business Combination. However, if the Company anticipates that it may not be able to consummate the initial Business Combination by the Extended Date, the Company may, by resolution of its board if requested by the Sponsor, extend the period of time to consummate a Business Combination up to

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

three times, each by an additional month up to February 15, 2024 (the “Additional Extended Date”), the date (the “Termination Date”) by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities (a “Business Combination”), the Company must (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Class A ordinary shares sold in the Company’s initial public offering (the “Public Shares”); and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law.

In connection with our assessment of going concern considerations in accordance with FASB Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” the Company has determined that the liquidity condition and the date for mandatory liquidation and subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after November 15, 2023. The condensed interim financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

Note 2 — Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed interim financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed interim financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the period presented. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected through December 31, 2023.

The accompanying unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K filed by the Company with the SEC on March 17, 2023.

Use of Estimates

The preparation of condensed interim financial statements in conformity with GAAP requires 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 condensed interim financial statements and the reported amounts of income and expenses during the reporting period. Making estimates require 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 condensed interim 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 significantly 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. As of June 30, 2023 and December 31, 2022, the Company had no cash equivalents.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation (“FDIC”) coverage limit of $250,000 per institution. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

Financial Instruments

The fair value of the Company’s assets and liabilities which qualify as financial instruments under the FASB ASC Topic 820, “Fair Value Measurements,” equal or approximate the carrying amounts represented in the condensed balance sheets primarily due to their short-term nature.

Fair Value Measurements

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers consist of:

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

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

Offering Costs Associated with the Initial Public Offering

The Company complies with the requirements of FASB ASC 340-10-S99-1. Offering costs consisted of legal, accounting, underwriting fees and other costs incurred that were directly related to the Initial Public Offering. Upon completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs allocated to the derivative warrant liabilities were charged to operations. Offering costs associated with the Class A ordinary shares were charged against the carrying value of Class A ordinary shares subject to possible redemption upon the completion of the Initial Public Offering.

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company evaluates all of the financial instruments, including issued stock purchase warrants, and forward purchase agreements, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, will be re-assessed at the end of each reporting period. Derivative warrant liabilities will be classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.

The 22,050,000 warrants that were issued in connection with the Initial Public Offering (including the 11,500,000 warrants included in the Units and the 10,550,000 Private Placement Warrants) and the 4,000,000 forward purchase securities (“Forward Purchase Securities”), were recognized as derivative liabilities in accordance with ASC 815. Accordingly, the Company recognized the warrant instruments as liabilities at fair value and adjust the instruments to fair value at each reporting period. The liabilities will be subject to re-measurement at each balance sheet date until exercised. The fair value of the Forward Purchase Securities, Public Warrants and the Private Placement Warrants were initially measured using a Monte Carlo simulation. The fair value of Public Warrants issued in

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NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

connection with the Initial Public Offering have subsequently been measured based on the listed market price of such Public Warrants. As of June 30, 2023 and December 31, 2022, the fair value of the Forward Purchase Securities are measured using a Monte Carlo simulation, and the fair value of the convertible note is measured using Black-Scholes model. As of June 30, 2023 and December 31, 2022, the fair value of Private Placement Warrants was determined based on the quoted price of the Public Warrants.

Class A Ordinary Shares Subject to Possible Redemption

The Company accounts for the Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC 480. Class A ordinary shares subject to mandatory redemption (if any) is classified as liability instruments and are measured at fair value. Conditionally redeemable Class A ordinary shares (including Class ordinary shares that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) are classified as temporary equity. At all other times, Class A ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of our control and subject to the occurrence of uncertain future events. Accordingly, as of June 30, 2023 and December 31, 2022, 4,151,134 and 23,000,000 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 condensed balance sheets, respectively.

On May 12, 2023, the Company held an extraordinary general meeting of its shareholders (the “Special Meeting”) at which the Company’s shareholders approved a proposal to amend the Company’s existing amended and restated articles of association to extend from May 15, 2023 to November 15, 2023 (the “Extended Date”) and to allow the board of directors of the Company, without another shareholder vote, to elect to further extend the date to consummate an initial business combination after the Extended Date up to three times, by an additional month each time, up to February 15, 2024, the date by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities, the Company must: (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the shares sold in the Company’s initial public offering; and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. In connection with such shareholder vote, the holders of an aggregate of 18,848,866 Class A ordinary shares of the Company exercised their right to redeem their shares for an aggregate of approximately $197,854,025 in cash held in the Trust Account. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of the Class A ordinary shares subject to possible redemption to equal the redemption value at the end of each reporting period. This method would view the end of the reporting period as if it were also the redemption date for the security. Effective with the closing of the Initial Public Offering (including exercise of the over-allotment option), the Company recognized the accretion from initial book value to redemption amount, which resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

As of June 30, 2023 and December 31, 2022, the amounts of Class A ordinary shares reflected on the condensed balance sheets are reconciled in the following table:

Gross proceeds from Initial Public Offering

    

$

230,000,000

Less:

Fair value of Public Warrants at issuance

(8,740,000)

Offering costs allocated to Class A ordinary shares subject to possible redemption

(5,469,344)

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

18,809,344

Class A ordinary shares subject to possible redemption, December 31, 2021

234,600,000

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

3,096,114

Class A ordinary shares subject to possible redemption, December 31, 2022

237,696,114

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

2,613,317

Class A ordinary shares subject to possible redemption, March 31, 2023

240,309,431

Less:

Redemptions of Class A ordinary shares

(197,854,025)

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

1,638,070

Class A ordinary shares subject to possible redemption, June 30, 2023

$

44,093,476

Net Income Per Share

The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Income are shared pro rata between the two classes of shares. Net income per ordinary share is calculated by dividing the net income by the weighted average shares of ordinary shares outstanding for the respective period.

The calculation of diluted net income does not consider the effect of the warrants underlying the Units sold in the Initial Public Offering (including the consummation of the over-allotment) and the Private Placement Warrants to purchase an aggregate of 22,050,000 Class A ordinary shares in the calculation of diluted income per share, because their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted net income per share is the same as basic net income per share for the three and six months ended June 30, 2023 and 2022. Accretion associated with the redeemable Class A ordinary shares is excluded from earnings per share as the redemption value approximates fair value.

The Company has considered the effect of Class B ordinary shares that were excluded from weighted average number as they were contingent on the exercise of over-allotment option by the underwriters. Since the contingency was satisfied, the Company has included these shares in the weighted average number as of the beginning of the period to determine the dilutive impact of these shares.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income per share for each class of ordinary shares:

For the Three Months Ended

For the Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

    

Class A

    

Class B

    

Class A

    

Class B

    

Class A

    

Class B

    

Class A

    

Class B

Basic and diluted net income per ordinary share

 

 

Numerator:

 

 

Allocation of net income

$

1,276,805

$

528,697

$

2,512,253

$

628,063

$

3,515,970

$

1,097,669

$

4,489,796

$

1,122,449

Denominator:

Basic and diluted weighted average ordinary shares outstanding

13,886,263

5,750,000

23,000,000

5,750,000

18,417,955

5,750,000

23,000,000

5,750,000

Basic and diluted net income per ordinary share

$

0.09

$

0.09

$

0.11

$

0.11

$

0.19

$

0.19

$

0.20

$

0.20

Recent Accounting Pronouncements

In June 2022, the FASB issued ASU 2022-03, ASC Subtopic 820 “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The ASU amends ASC 820 to clarify that a contractual sales restriction is not considered in measuring an equity security at fair value and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The ASU applies to both holders and issuers of equity and equity-linked securities measured at fair value. The amendments in this ASU are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the condensed interim financial statements.

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 condensed interim financial statements.

Note 3 — Initial Public Offering

On November 15, 2021, the Company consummated its Initial Public Offering of 23,000,000 Units, including 3,000,000 Over-Allotment Units, at $10.00 per Unit, generating gross proceeds of $230.0 million, and incurring offering costs of approximately $5.7 million, of which approximately $254,000 was for offering costs allocated to derivative warrant liabilities.

Each Unit consists of one Class A ordinary share and one-half of one redeemable warrant (“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, subject to adjustment (see Note 8).

Note 4 — Private Placement Warrants

Simultaneously with the closing of the Initial Public Offering, the Company consummated the Private Placement of 10,550,000 Private Placement Warrants, at a price of $1.00 per Private Placement Warrant to the Sponsor and CB Co-Investment, generating proceeds of approximately $10.6 million.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

Each whole Private Placement Warrant is exercisable for one whole Class A ordinary share at a price of $11.50 per share. A portion of the proceeds from the sale of the Private Placement Warrants was added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the Private Placement Warrants will expire worthless. The Private Placement Warrants will be non-redeemable except as described below in Note 8 and exercisable on a cashless basis.

The Sponsor and the Company’s officers and directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their Private Placement Warrants until 30 days after the completion of the initial Business Combination.

Note 5 — Related Party Transactions

Founder Shares

On February 3, 2021, the Sponsor and CB Co-Investment paid an aggregate of $25,000 for certain expenses on behalf of the Company in exchange for issuance of an aggregate of 8,625,000 Class B ordinary shares (the “Founder Shares”). The Sponsor purchased 7,195,714 of the Founder Shares and CB Co-Investment purchased 1,429,286 of the Founder Shares. On April 9, 2021, CB Co-Investment transferred 28,571 Founder Shares to the Sponsor at their original purchase price. On October 1, 2021, the Sponsor forfeited 2,408,095 and CB Co-Investment forfeited 466,905 Founder Shares, in each case, for no consideration.

On November 9, 2021, the Sponsor transferred an aggregate of 156,000 Founder Shares to three of the Company’s directors, the chief financial officer and two of the Company’s advisors. As a result, the Sponsor had 4,660,190 Founder Shares and CB Co-Investment had 933,810 Founder Shares outstanding. The transfer of the Founder Shares is in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon the grant date. The Founders Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founders Shares is recognized only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance. As of June 30, 2023, the Company determined that a Business Combination is not considered probable, and, therefore, no stock-based compensation expense has been recognized. Stock-based compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number of Founders Shares that ultimately vest multiplied times the grant date fair value per share (unless subsequently modified) less the amount initially received for the purchase of the Founders Shares.

The Sponsor and CB Co-Investment agreed to forfeit up to an aggregate of 750,000 Founder Shares to the extent that the option to purchase additional Units was not exercised in full by the underwriters, so that the Founder Shares would represent 20% of the Company’s issued and outstanding shares after the Initial Public Offering. The underwriters exercised their over-allotment option in full on November 15, 2021; thus, these 750,000 Founder Shares were no longer subject to forfeiture.

On October 13, 2022, the Sponsor exercised its right to repurchase 12,500 Class B ordinary shares from Nathaniel Fick for an aggregate purchase price of $54.35, due to his resignation from the board of directors of the Company, effective as of August 1, 2022, pursuant to that certain Share Transfer Agreement, among the Company, the sponsor and Nathaniel Fick, dated November 9, 2021.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

The Initial Shareholders, and the executive officers and directors of the Company, agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (A) one year after the completion of the initial Business Combination and (B) subsequent to the initial Business Combination, (x) if the closing price of Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, share exchange, reorganization 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, Notwithstanding the foregoing, if the closing price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, the Founder Shares will be released from the lockup.

Related Party Loans

Promissory Note to Sponsor

On February 1, 2021, the Sponsor agreed to loan the Company up to $300,000 to be used for the payment of costs related to the Initial Public Offering pursuant to a promissory note (the “Note”). The Note was non-interest bearing, unsecured and due upon the closing of the Initial Public Offering. The Company had borrowed approximately $244,000 under the Note. The Company fully repaid this amount on November 17, 2021.

Convertible Note — Related Party

Upon closing of the Initial Public Offering, CB Co-Investment loaned the Company approximately $1.2 million to deposit into Trust Account, in exchange for a non-interest bearing, unsecured convertible promissory note (“Convertible Note”). Such Convertible Note will not be repaid in the event that the Company is unable to close a Business Combination unless there are funds available outside the Trust Account to do so. Such promissory note would either be paid upon consummation of the Company’s initial Business Combination, or, at the discretion of CB Co-Investment and/or its designees, converted into additional warrants at a price of $1.00 per warrant.

On November 16, 2022, the Sponsor agreed to loan the Company up to $1.2 million pursuant to an unsecured non-interest bearing convertible promissory note (“Additional Convertible Note”). Such Additional Convertible Note will not be repaid in the event that the Company is unable to close a Business Combination unless there are funds available outside the Trust Account to do so. Such Additional Convertible Note would either be paid upon consummation of the Company’s initial Business Combination, or, at the discretion of Sponsor, converted into additional warrants at a price of $1.00 per warrant, which warrants will be identical to the Private Placement Warrants. As of June 30, 2023 and December 31, 2022, a total of $894,600 and $350,000, respectively, have been drawn under the Additional Convertible Note.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

Working Capital Loan

In addition, 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 may 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 Convertible Note and the Working Capital Loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1.5 million of the 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. As of June 30, 2023 and December 31, 2022, there was $2,044,600 and $1,500,000, respectively, outstanding under the working capital loans (convertible notes).

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.

Administrative Services Agreement

On November 9, 2021, the Company entered into an agreement that provided that, the Company pay the Sponsor $20,000 per month for office space, secretarial and administrative services provided to the Company through the earlier of consummation of the initial Business Combination and the liquidation. On July 14, 2022, the Company entered into an Amended and Restated Administrative Services Agreement with the Sponsor, to increase the amount payable to the Sponsor (in an amount not to exceed the aggregate sum of $30,000 per month). For the three and six months ended June 30, 2023, the Company incurred expenses of $90,000 and $180,000 under this agreement, respectively. For the three and six months ended June 30, 2022, the Company incurred expenses of $60,000 and $120,000 under this agreement, respectively.

In addition, the Sponsor, officers and directors, and any of their respective affiliates will be reimbursed for any out-of-pocket expenses incurred in connection with activities on the Company’s behalf such as identifying potential partner businesses and performing due diligence on suitable Business Combinations. The audit committee will review on a quarterly basis all payments that were made by the Company to the Sponsor, officers or directors, or the Company’s or their affiliates. Any such payments prior to an initial Business Combination will be made from funds held outside the Trust Account.

As of June 30, 2023 and December 31, 2022, the Company had no outstanding balance payable to a related party as it relates to this agreement.

Note 6 — Commitments and Contingencies

Registration Rights and Shareholder Rights

The holders of the Founder Shares, Private Placement Warrants, Class A ordinary shares underlying the Private Placement Warrants, the Forward Purchase Securities and warrants that may be issued upon conversion of the Convertible Note and the Working Capital Loans (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants, Forward Purchase Warrants and warrants that may be issued upon conversion of such loans) were entitled to registration rights pursuant to a registration and shareholder rights agreement signed upon the effective date of the Initial Public Offering. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company registers such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of the initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

Underwriting Agreement

The Company granted the underwriters a 45-day option from the date of the final prospectus relating to the Initial Public Offering to purchase up to 3,000,000 additional Units at the Initial Public Offering price less the underwriting discounts and commissions. The underwriters exercised their over-allotment option in full on November 15, 2021.

The underwriters were entitled to an underwriting discount of $0.20 per Unit, or $4.6 million in the aggregate, paid upon the closing of the Initial Public Offering.

Business Combination Marketing Agreement

On November 9, 2021, the Company entered into an agreement with one of the underwriters, Cowen and Company, LLC, as advisors in connection with the Company’s Business Combination to assist the Company in holding meetings with the shareholders to discuss the potential Business Combination and the target business’ attributes, introduce the Company to potential investors that are interested in purchasing the Company’s securities in connection with the potential Business Combination, assist the Company in obtaining shareholder approval for the Business Combination and assist the Company with its press releases and public filings in connection with the Business Combination. The Company agreed to pay a fee for such services (the “Marketing Fee”) upon the consummation of the initial Business Combination in an amount equal to, in the aggregate, 3.5% of the gross proceeds of the Initial Public Offering, or approximately $8.1 million in the aggregate. As a result, the underwriters will not be entitled to such fee unless the Company consummates its initial Business Combination. As of June 30, 2023 and December 31, 2022, the Company determined that a Business Combination is not considered probable.

Forward Purchase Agreement

Franklin Strategic Series — Franklin Growth Opportunities Fund (“Franklin”)on November 1, 2021  entered into a forward purchase agreement (“Forward Purchase Agreement”) with the Company that provides for the purchase by Franklin, in the aggregate, of 6,000,000 Forward Purchase Securities, for an aggregate purchase price of $40.0 million, with each Forward Purchase Security consisting of one Class A ordinary share and one-half of one redeemable warrant in each case, for an aggregate of 4,000,000 Class A ordinary shares and 2,000,000 redeemable warrants, for $10.00 per Forward Purchase Security, in a private placement to close substantially concurrently with the closing of the initial Business Combination. The obligations under the Forward Purchase Agreement will not depend on whether any Class A ordinary shares are redeemed by the Public Shareholders.

The Forward Purchase Securities will not have any redemption rights in connection with the initial Business Combination and will not be entitled to liquidating distributions from the Trust Account if the Company fails to complete the initial Business Combination within the prescribed time frame. The Forward Purchase Securities, to the extent issued prior to the record date for a shareholder vote on the initial Business Combination or any other matter, will have the right to vote on such matter with all other holders of the outstanding Class A ordinary shares; provided that if the Company seeks shareholder approval of a proposed initial Business Combination after Franklin has purchased the Forward Purchase Securities, Franklin agreed under the forward purchase agreement to vote any of the Class A ordinary shares owned by Franklin in favor of any proposed initial Business Combination.

The Forward Purchase Securities sold pursuant to the Forward Purchase Agreement will be identical to the Class A ordinary shares and redeemable warrants included in the Units being sold in the Initial Public Offering, except as described herein. In addition, the Forward Purchase Securities will have certain registration rights, so long as such Forward Purchase Securities are held by Franklin or any third party to which Franklin transfers any portion of its obligation under the Forward Purchase Agreement.

The capital from such private placement would be used as part of the consideration to the sellers in the initial Business Combination, and any excess capital from such private placement would be used for working capital in the post-transaction company.

Non-Redemptions Agreements

In connection with the extraordinary general meeting of shareholders (the “Special Meeting”) of the Company, to extend the date by which the Company has to consummate a business combination (the “Articles Extension”) from May 15, 2023 to November 15, 2023 (with right to extend additionally for three 1 month increments through February 15, 2024) the Company, the Sponsor (or the “Seller”)

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

and CB Co-Investment have entered into one or more non-redemption agreements (the “Non-Redemption Agreements”), with several unaffiliated third parties (“Investors”), pursuant to which such third parties agreed not to redeem (or to validly rescind any redemption requests on) an aggregate of 4,000,000 previously-held Class A ordinary shares of the Company (“Non-Redeemed Shares”) in connection with the Articles Extension. In exchange for the foregoing commitments not to redeem such previously-held Class A ordinary shares, the Sponsor and CB Co-Investment, as applicable, agreed to transfer an aggregate of 1,000,000 ordinary shares of the Company held by the Sponsor or CB Co-Investment, as applicable, plus up to an additional aggregate of 500,000 ordinary shares of the Company held by the Sponsor or CB Co-Investment, as applicable, with such number of additional ordinary shares of the Company to be determined based upon the date of the consummation of the Company’s initial business combination  immediately following consummation of an initial business combination.

The Company estimated the aggregate fair value of a weighted number of founder shares based on the likelihood of consummating an initial business combination beyond November 15, 2023, or 1,166,663 founder shares, attributable to the Non-Redeeming Stockholders to be $4,802,931 or $4.12 per share. Each Non-Redeeming Shareholder acquired from the Sponsor an indirect economic interest in the founder shares. The excess of the fair value of the founder shares was determined to be an offering cost in accordance with Staff Accounting Bulletin Topic 5A. Accordingly, in substance, it was recognized by the Company as a capital contribution by the Sponsor to induce these holders of the Class A shares not to redeem, with a corresponding charge to additional paid-in capital to recognize the fair value of the shares transferred as an offering cost.

The fair value of the founder shares were based on a Monte Carlo Model using the following significant inputs:

    

May 10, 2023

 

Stock price

$

10.42

Risk free rate

 

4.25

%

Remaining life

 

1.56

Volatility

 

5.4

%

Probability of transaction

 

40

%

Letter and Joinder Agreement

In connection with the grant of the RSUs to Mr. Lazarus, the Company and Mr. Lazarus entered into Letter Agreement dated June 15, 2023 and Joinder Agreement dated June 20, 2023. Pursuant to which, among other things, the Company agreed to grant Mr. Lazarus 30,000 RSUs of the Company subject to the terms and conditions set forth therein; Mr. Lazarus has agreed to vote any Class B ordinary shares and Class A ordinary shares held by him in favor of the Company’s initial business combination; facilitate the liquidation and winding up of the Company if an initial business combination is not consummated within the time period required by its Amended and Restated Memorandum and Articles of Association; and certain transfer restrictions with respect to the Company’s securities. Pursuant to which Mr. Lazarus became a party to that certain Registration and Shareholder Rights Agreement, dated November 9, 2021, among the Company, the Sponsor, CB Co-Investment and certain equity holders of the Company, which provides for, among other things, customary demand and piggy-back registration rights.

Note 7 — Shareholders’ Deficit

Preference Shares — The Company is authorized to issue 1,000,000 preference 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 Company’s board of directors. As of June 30, 2023 and December 31, 2022, there were no preference shares issued or outstanding.

Class A Ordinary shares — The Company is authorized to issue 479,000,000 Class A ordinary shares with a par value of $0.0001 per share. Holders of the Company’s Class A ordinary shares are entitled to one vote for each share. As of June 30, 2023 and December 31, 2022, there were 4,151,134 and 23,000,000 Class A ordinary shares outstanding, all of which were classified as temporary equity in the accompanying condensed balance sheets, respectively.

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Table of Contents

CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

Class B Ordinary shares The Company is authorized to issue 20,000,000 Class B ordinary shares with a par value of $0.0001 per share. As of June 30, 2023 and December 31, 2022, there were 5,750,000 Class B ordinary shares issued and outstanding. Of the 5,750,000 Class B ordinary shares outstanding, up to 750,000 shares were subject to forfeiture, to the Company by the Initial Shareholders for no consideration to the extent that the underwriters’ overallotment option was not exercised in full, so that the Initial Shareholders would collectively own 20% of the Company’s issued and outstanding ordinary shares after the Initial Public Offering. The underwriters exercised their over-allotment option in full on November 15, 2021; thus, these 750,000 Class B ordinary shares were no longer subject to forfeiture.

Class A and Class B ordinary shareholders of record are entitled to one vote for each share held on all matters to be voted on by shareholders. Except as described below, holders of Class A ordinary shares and holders of Class B ordinary shares will vote together as a single class on all matters submitted to a vote of the shareholders except as required by law. Prior to the initial Business Combination, only holders of the Founder Shares will have the right to vote on the appointment of directors. Holders of the Public Shares will not be entitled to vote on the appointment of directors during such time. In addition, prior to the completion of an initial Business Combination, holders of a majority of the Founder Shares may remove a member of the board of directors for any reason. The provisions of the Amended and Restated Memorandum and Articles of Association governing the appointment or removal of directors prior to the initial Business Combination may only be amended by a special resolution passed by holders representing at least two-thirds of the issued and outstanding Class B ordinary shares.

The Class B ordinary shares will automatically convert into Class A ordinary shares on the first business day following the consummation of the initial Business Combination at a ratio such that the number of Class A ordinary shares issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of (i) the total number of ordinary shares issued and outstanding upon the consummation of the Initial Public Offering, plus the sum of the total number of Class A ordinary shares issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the consummation of the initial Business Combination (net of any redemptions of Class A ordinary shares by Public Shareholders), excluding any Class A ordinary shares or equity-linked securities exercisable for or convertible into Class A ordinary shares issued, deemed issued, or to be issued, to any seller in the initial Business Combination, and any Forward Purchase Securities and any Private Placement Warrants issued to the Sponsor or CB Co-Investment, members of the Company’s founding team or any of their affiliates upon conversion of the Convertible Note and Working Capital Loans. In no event will the Class B ordinary shares convert into Class A ordinary shares at a rate of less than one-to-one.

Note 8 —Warrants

As of June 30, 2023 and December 31, 2022, the Company had 11,500,000 Public Warrants and 10,550,000 Private Placement Warrants outstanding.

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 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 warrants on a cashless basis under certain circumstances). The Company 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 commercially reasonable efforts to file with the SEC a registration statement covering the 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, as specified in the warrant agreement. If a registration statement covering the Class A ordinary shares issuable upon exercise of the warrants is not effective by the 60th day after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, 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 they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” and, in the event the Company so elects, the Company will not be

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

required to file or maintain in effect a registration statement, and in the event the Company does not so elect, it will use commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

The warrants have an exercise price of $11.50 per share, subject to adjustments, and will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. In addition, if (x) the Company issues additional Class A ordinary 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 Class A ordinary share (with such issue price or effective issue price to be determined in good faith by the board of directors and, in the case of any such issuance to Franklin, the initial shareholders or their affiliates, without taking into account any founder shares held by the initial shareholders or such affiliates, as applicable, or any forward purchase securities held by Franklin, prior to such issuance including any transfer or reissuance of such shares) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination on the date of the consummation of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of Class A ordinary shares during the 10-trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price (and the $10.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price See “— Redemption of warrants for cash when the price per class A ordinary share equals or exceeds $18.00” and “— Redemption of warrants for Class A ordinary shares when the price per class A ordinary share equals or exceeds $10.00” as described below).

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except (i) that the Private Placement Warrants and the Class A ordinary shares issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions, (ii) except as described below, the Private Placement Warrants will be non-redeemable so long as they are held by the Sponsor, CB Co-Investment or their respective permitted transferees and (iii) the Sponsor or its permitted transferees will have the option to exercise the Private Placement Warrants on a cashless basis and have certain 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.

Redemption of warrant when the price per share of Class A ordinary shares equals or exceeds $18.00. Once warrants become exercisable, the Company may redeem the outstanding warrants for cash:

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 to each warrant holder; and
if, and only if, the closing price of Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders (the “Reference Value”).

Redemption of warrants when the price per share of Class A ordinary shares equals or exceeds $10.00. Once the warrants become exercisable, the Company may redeem the outstanding warrants:

in whole and not in part;
at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of Class A ordinary shares to be determined by reference to an agreed table based on the redemption date and the “fair market value” of Class A ordinary shares;

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

if, and only if, the closing price of Class A ordinary shares equals or exceeds $10.00 per Public Share (as adjusted per share subdivisions, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within the 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders; and
if the Reference Value is less than $18.00 per share (as adjusted for share splits, share dividends, rights issuances, subdivisions, reorganizations, recapitalizations and the like), then the Private Placement Warrants must also concurrently be called for redemption on the same terms (except as described herein with respect to a holder’s ability to cashless exercise its warrants) as the outstanding Public Warrants as described above.

The “fair value” of Class A ordinary shares for the above purpose shall mean the volume weighted average price of Class A ordinary shares during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of warrants. In no event will the warrants be exercisable on a cashless basis in connection with this redemption feature for more than 0.361 Class A ordinary shares per warrant (subject to adjustment).

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, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless.

Note 9 —Fair Value Measurements

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value.

June 30, 2023 (unaudited)

    

Quoted Prices in

    

Significant Other

    

Significant Other

Active Markets

Observable Inputs

Unobservable Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Assets:

Investments held in Trust Account - U.S. Treasury Securities

$

44,193,476

$

$

Liabilities:

 

 

 

Convertible note - related party

$

$

$

1,912,992

Derivative liabilities- Public Warrants

$

575,000

$

$

Derivative liabilities- Private Placement Warrants

$

$

527,500

$

Derivative liabilities - Forward Purchase Agreement

$

$

$

202,211

December 31, 2022

    

Quoted Prices in

    

Significant Other

    

Significant Other

Active Markets

Observable Inputs

Unobservable Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Assets:

Investments held in Trust Account - U.S. Treasury Securities (1)

$

237,795,799

$

$

Liabilities:

 

 

 

Convertible note - related party

$

$

$

1,431,546

Derivative liabilities- Public Warrants

$

1,150,000

$

$

Derivative liabilities- Private Placement Warrants

$

$

1,055,000

$

Derivative liabilities - Forward Purchase Agreement

$

$

$

342,235

(1)Excludes $315 of cash balance held within the Trust Account

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

Transfers to/from Levels 1, 2, and 3 are recognized at the beginning of the reporting period. The estimated fair value of Public Warrants was transferred from a Level 3 measurement to a Level 1 measurement, when the Public Warrants were separately listed and traded in an active market in December 2021. The estimated fair value of the Private Placement Warrants was transferred from a Level 3 measurement to a Level 2 fair value measurement in January 2022, as the transfer of Private Placement Warrants to anyone who is not a permitted transferee would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined that the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant. There were no other transfers between levels of the hierarchy for the three and six months ended June 30, 2023.

Level 1 assets include investments in U.S. treasury securities. The Company uses inputs such as actual trade data, quoted market prices from dealers or brokers, and other similar sources to determine the fair value of its investments.

The initial estimated fair value as of November 15, 2021, of the Public Warrants, the Private Placement Warrants, and the Forward Purchase Agreement is measured at fair value using a Monte Carlo simulation, determined using Level 3 inputs. The fair value of Public Warrants issued in connection with the Initial Public Offering have subsequently been measured based on the listed market price of such warrants. As of June 30, 2023 and December 31, 2022, the fair value of the Forward Purchase Securities are measured using a Monte Carlo simulation, and the fair value of the convertible note is measured using a Black-Scholes model. As of June 30, 2023 and December 31, 2022, the fair value of Private Placement Warrants was determined based on the quoted price of the Public Warrants. Inherent in a Monte Carlo simulation and Black-Scholes model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield.

The following table provides quantitative information regarding Level 3 fair value measurements inputs at June 30, 2023 and December 31, 2022 measurement date:

June 30, 2023 (unaudited)

    

    

Forward Purchase

    

    

 

    

Warrants

    

Agreements

    

Convertible Note

 

Exercise price

$

11.50

$

10.00

$

1.00

Stock price

$

10.51

$

9.63

$

0.05

Term (years)

 

5.38

 

0.38

 

0.38

Volatility

 

6.0

%  

 

 

38.2

%

Risk-free rate

 

4.02

%  

 

5.31

%  

 

5.31

%

Dividend yield

 

0.0

%  

 

0.0

%  

 

0.0

%

December 31, 2022

    

    

    

Forward Purchase

    

    

 

Warrants

Agreements

Convertible Note

 

Exercise price

$

11.50

$

10.00

$

1.00

Stock price

$

10.28

$

10.85

$

0.10

Term (years)

 

5.29

 

0.29

 

0.29

Volatility

 

6.0

%  

 

 

42.3

%

Risk-free rate

 

3.91

%  

 

4.37

%  

 

4.37

%

Dividend yield

 

0.0

%  

 

0.0

%  

 

0.0

%

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CHAIN BRIDGE I

NOTES TO Unaudited CONDENSED INTERIM FINANCIAL STATEMENTS

The change in the fair value of the derivative liabilities measured using Level 3 inputs for the three and six months ended June 30, 2023 and 2022, is summarized as follows:

Derivative liabilities at December 31, 2022

    

$

342,235

Change in fair value of derivative warrant liabilities

 

(7,603)

Derivative liabilities at March 31, 2023 (unaudited)

334,632

Change in fair value of derivative warrant liabilities

(132,421)

Derivative liabilities at June 30, 2023 (unaudited)

$

202,211

Derivative liabilities at December 31, 2021

    

$

5,694,560

Transfer of Private Placement Warrants to Level 2

 

(5,301,100)

Change in fair value of derivative liabilities

 

385,990

Derivative liabilities at March 31, 2022 (unaudited)

779,450

Change in fair value of derivative liabilities

(7,451)

Derivative liabilities at June 30, 2022 (unaudited)

$

771,999

The change in the fair value of the convertible note – related party measured using Level 3 inputs for the three and six months ended June 30, 2023 and 2022, is summarized as follows:

Convertible note - related party at December 31, 2022

    

$

1,431,546

Additional issuance of convertible note - related party

 

391,000

Change in fair value of convertible note - related party

 

(70,040)

Convertible note - related party at March 31, 2023 (unaudited)

1,752,506

Additional issuance of convertible note - related party

153,600

Change in fair value of convertible note - related party

6,886

Convertible note - related party at June 30, 2023 (unaudited)

$

1,912,992

Convertible note - related party at December 31, 2021

    

$

1,053,556

Change in fair value of convertible note - related party

4,208

Convertible note - related party at March 31, 2022 (unaudited)

$

1,057,764

Change in fair value of convertible note - related party

(45,956)

Convertible note - related party at June 30, 2022 (unaudited)

$

1,011,808

Note 10 — Subsequent Events

The Company has evaluated subsequent events and transactions that occurred up to the date the unaudited condensed interim financial statements were issued. Based upon this review, the Company did not identify any subsequent events, that would have required adjustment or disclosure in the unaudited condensed interim financial statements.

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

References to the “Company,” “Chain Bridge I,” “our,” “us” or “we” refer to Chain Bridge I. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited condensed interim financial statements and the notes thereto contained elsewhere in this report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks uncertainties and assumptions about us that may cause our actual result levels of activity performance or achievements to be materially different from any future results, levels of activity performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements please refer to the Risk Factors section of the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Overview

We are a blank check company incorporated as a Cayman Islands exempted company on January 21, 2021. We were incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses that we have not yet identified (the “Business Combination”). Although we are not limited to a particular industry or geographic region for purposes of consummating an initial Business Combination, we intend to focus on partnering with a technology company that will advance U.S. national security and intelligence interests.

As of June 30, 2023, we had not yet commenced operations. All activity for the period from January 21, 2021 (inception) through June 30, 2023 relates to our formation, our initial public offering (the “Initial Public Offering”), which is described below and, subsequent to the Initial Public Offering, the search for a prospective Business Combination. We will not generate any operating revenues until after the completion of our initial Business Combination, at the earliest. We 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.

Our sponsor is Chain Bridge Group, a Cayman Islands exempted limited liability company (the “Sponsor”). The registration statement for our Initial Public Offering was declared effective on November 9, 2021. On November 15, 2021, we consummated our Initial Public Offering of 23,000,000 units (the “Units”), including 3,000,000 additional Units to cover over-allotments, at $10.00 per Unit, generating gross proceeds of $230.0 million, and incurring offering costs of approximately $5.7 million, of which approximately $254,000 was for offering costs allocated to derivative warrant liabilities.

Simultaneously with the closing of the Initial Public Offering, we consummated the private placement (“Private Placement”) of 10,550,000 private placement warrants, at a price of $1.00 per private placement warrant to the Sponsor and CB Co-Investment LLC (“CB Co-Investment”), generating proceeds of approximately $10.6 million (Note 4).

In addition, upon closing of the Initial Public Offering, CB Co-Investment loaned us approximately $1,150  thousand at no interest. On November 16, 2022, the Sponsor agreed to loan the Company up to $1,200 thousand pursuant to an unsecured non-interest bearing convertible promissory note (“Additional Convertible Note”). Such Additional Convertible Note will not be repaid in the event that the Company is unable to close a Business Combination unless there are funds available outside the Trust Account to do so. Such Additional Convertible Note would either be paid upon consummation of the Company’s initial Business Combination, or, at the discretion of Sponsor, converted into additional warrants at a price of $1.00 per warrant, which warrants will be identical to the Private Placement Warrants. As of June 30, 2023, and December 31, 2022, the Company had an outstanding balance of $894,600 and $350,000, respectively, under the Additional Convertible Note.

25

Upon the closing of the Initial Public Offering, $234.6 million ($10.20 per Unit) of net proceeds, including the net proceeds of the Initial Public Offering, certain of the proceeds of the Private Placement and the proceeds from the convertible promissory note issued to CB Co-Investment, was placed in a trust account (the “Trust Account”) with Continental Stock Transfer & Trust Company acting as trustee and invested in United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended, or the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account as described in the condensed interim financial statements.

Liquidity and Going Concern

At June 30, 2023, we had cash of approximately $37,000 and working capital of approximately $7,000.

Our liquidity needs up to December 31, 2022 had been satisfied through the cash receipt of $25,000 from the Sponsor and CB Co-Investment to cover for certain expenses on behalf of the Company in exchange for issuance of founder shares, and loan from the related party of approximately $244,000 under the Note (as defined herein). The Company repaid the original Note of approximately $244,000 in full on November 17, 2021. Subsequent to the consummation of the Initial Public Offering, the Company’s liquidity has been satisfied through the net proceeds from the consummation of the Initial Public Offering, over-allotment, the Private Placement held outside of the trust account and the issuance of the convertible notes. In addition, in order to 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, provide the Company Working Capital Loans (as defined in Note 5). As of June 30, 2023 and December 31, 2022, there was $2,044,600 and $1,500,000, respectively, outstanding under the Working Capital Loans (convertible notes).

The Company has until November 15, 2023 (the “Extended Date”) to consummate an initial Business Combination. However, if the Company anticipates that it may not be able to consummate the initial Business Combination by the Extended Date, the Company may, by resolution of its board if requested by the Sponsor, extend the period of time to consummate a Business Combination up to three times, each by an additional month up to February 15, 2024 (the “Additional Extended Date”), the date (the “Termination Date”) by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities (a “Business Combination”), the Company must (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Class A ordinary shares sold in the Company’s initial public offering (the “Public Shares”); and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law.

In connection with our assessment of going concern considerations in accordance with FASB Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” the Company has determined that the liquidity condition and the date for mandatory liquidation and subsequent dissolution raises substantial doubt about the Companys ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after November 15, 2023. The condensed interim financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

Results of Operations

Our entire activity since inception up to June 30, 2023 was in preparation for our Initial Public Offering and since the closing of the Initial Public Offering, the search for a prospective Business Combination. We will not generate any operating revenues until the closing and completion of our initial business combination, at the earliest.

For the three months ended June 30, 2023, we had a net income of approximately $1.8 million, which consisted of net gain from the change in fair value of derivative liabilities of approximately $790,000, and investment income on the Trust Account of approximately $1.6 million, partially offset by general and administrative expenses of approximately $529,000, general and administrative expenses to related party of $90,000 and net loss from the change in fair value of convertible note to related party of approximately $7,000.

26

For the three months ended June 30, 2022, we had a net income of approximately $3.1 million, which consisted of net gain from the change in fair value of derivative liabilities of approximately $3.1 million, and net gain from the change in fair value of convertible note to related party of approximately $46,000 and investment income on the trust account of approximately $286,000, partially offset by general and administrative expenses of approximately $226,000 and general and administrative expenses to related party of $60,000.

For the six months ended June 30, 2023, we had a net income of approximately $4.6 million, which consisted of net gain from the change in fair value of derivative liabilities of approximately $1.2 million, net gain from the change in fair value of convertible note to related party of approximately $63,000 and investment income on the Trust Account of approximately $4.3 million, partially offset by general and administrative expenses of approximately $763,000 and general and administrative expenses to related party of $180,000.

For the six months ended June 30, 2022, we had a net income of approximately $5.6 million, which consisted of net gain from the change in fair value of derivative liabilities of approximately $5.9 million, net gain from the change in fair value of convertible note to related party of approximately $42,000 and investment income on the trust account of approximately $364,000, partially offset by general and administrative expenses of approximately $552,000 and general and administrative expenses to related party of $120,000.

Contractual Obligations

Registration Rights and Shareholder Rights

The holders of Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of ordinary shares issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares), as well as Franklin and their permitted transferees, were entitled to registration rights pursuant to a registration and shareholder rights agreement signed upon the consummation of the Initial Public Offering. These holders will be entitled to certain demand and “piggyback” registration rights. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriters were entitled to an underwriting discount of $0.20 per Unit, or approximately $4.6 million in the aggregate, paid upon the closing of the Initial Public Offering.

Critical Accounting Policies

Derivative Financial Instruments

We do not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments, including issued stock purchase warrants, and forward purchase agreements, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, will be re-assessed at the end of each reporting period. Derivative warrant liabilities will be classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.

The 22,050,000 warrants that were issued in connection with the Initial Public Offering (including the 11,500,000 warrants included in the Units and the 10,550,000 Private Placement Warrants) and the 4,000,000 Forward Purchase Securities, were recognized as derivative liabilities in accordance with ASC 815. Accordingly, the Company recognized the warrant instruments as liabilities at fair value and adjust the instruments to fair value at each reporting period. The liabilities will be subject to re-measurement at each balance sheet date until exercised. The fair value of the Forward Purchase Securities, Public Warrants and the Private Placement Warrants were initially measured using a Monte Carlo simulation. The fair value of Public Warrants issued in connection with the Initial Public Offering have subsequently been measured based on the listed market price of such Public Warrants. As of June 30, 2023 and December 31, 2022, the fair value of the Forward Purchase Securities are measured using a Monte Carlo simulation, and the fair value of the convertible note is measured using Black-Scholes model. As of June 30, 2023 and December 31, 2022, the fair value of Private Placement Warrants was determined based on the quoted price of the Public Warrants.

27

Class A Ordinary Shares Subject to Possible Redemption

We account for our Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC 480. Class A ordinary shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable Class A ordinary shares (including Class A ordinary shares that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) are classified as temporary equity. At all other times, Class A ordinary shares are classified as shareholders’ equity. Our Class A ordinary shares feature certain redemption rights that are considered to be outside of our control and subject to the occurrence of uncertain future events. Accordingly, as June 30, 2023 and December 31, 2023, 4,151,134 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 our condensed balance sheets.

We recognize changes in redemption value immediately as they occur and adjusts the carrying value of the Class A ordinary shares subject to possible redemption to equal the redemption value at the end of each reporting period. This method would view the end of the reporting period as if it were also the redemption date for the security. Effective with the closing of the Initial Public Offering (including exercise of the over-allotment option), we recognized the accretion from initial book value to redemption amount, which resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit.

Net Income Per Share

We comply with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” We have two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two classes of shares. Net income per ordinary share is calculated by dividing the net income by the weighted average shares of ordinary shares outstanding for the respective period.

The calculation of diluted net income does not consider the effect of the warrants underlying the Units sold in the Initial Public Offering (including the consummation of the over-allotment) and the Private Placement Warrants to purchase an aggregate of 22,050,000 Class A ordinary shares in the calculation of diluted income per share, because their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted net income per share is the same as basic net income per share for the three and six months ended June 30, 2023 and 2022. Accretion associated with the redeemable Class A ordinary shares is excluded from earnings per share as the redemption value approximates fair value.

We have considered the effect of Class B ordinary shares that were excluded from weighted average number as they were contingent on the exercise of over-allotment option by the underwriters. Since the contingency was satisfied, we have included these shares in the weighted average number as of the beginning of the period to determine the dilutive impact of these shares.

Recent Accounting Pronouncements

In June 2022, the FASB issued ASU 2022-03, ASC Subtopic 820 “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The ASU amends ASC 820 to clarify that a contractual sales restriction is not considered in measuring an equity security at fair value and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The ASU applies to both holders and issuers of equity and equity-linked securities measured at fair value. The amendments in this ASU are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the condensed interim financial statements.

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 condensed interim financial statements.

Off-Balance Sheet Arrangements

As of June 30, 2023 and December 31, 2022, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

28

JOBS Act

The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We qualify as an “emerging growth company” and under the JOBS Act are allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non- emerging growth companies. As a result, the condensed interim financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions we may not be required to, among other things, (i) provide an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404, (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis) and (iv) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. These exemptions will apply for a period of five years following the completion of our Initial Public Offering or until we are no longer an “emerging growth company,” whichever is earlier.

Item 3.      Quantitative and Qualitative Disclosures About Market Risk

Not required for smaller reporting companies.

Item 4.      Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of June 30, 2023, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our principal executive officer and principal financial and accounting officer have concluded that as of June 30, 2023, our disclosure controls and procedures were effective.

Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2023 based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its assessment, management concluded that our internal control over financial reporting was effective as of June 30, 2023.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting that occurred during our fiscal quarter ended June 30, 2023 that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

29

PART II — OTHER INFORMATION

Item 1.      Legal Proceedings

None.

Item 1A.    Risk Factors

Factors that could cause our actual results to differ materially from those in this Quarterly Report on Form 10-Q include the risk factors described in our Annual Report on Form 10-K filed with the SEC on March 17, 2023. You should review the risk factor below for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in this Quarterly Report on Form 10-Q. If any of the following risks actually occur, our business, financial condition and results of operations could be adversely affected.

Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.      Defaults Upon Senior Securities

None.

Item 4.      Mine Safety Disclosures

None.

Item 5.      Other Information

None.

30

Item 6.      Exhibits.

Exhibit Number

    

Description

31.1

Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

31.2

Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

32.1*

Certification of Principal Executive Officers pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

32.2*

Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*

These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on this 10th day of August, 2023.

Chain Bridge I

By:

/s/ Michael Rolnick

Name:

Michael Rolnick

Title:

Chief Executive Officer

By:

/s/ Roger Lazarus

Name:

Roger Lazarus

Title:

Chief Financial Officer

32

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Rolnick, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 of Chain Bridge I;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) and 15d-15(e)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.

The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 10, 2023

By:

/s/ Michael Rolnick

Name:

Michael Rolnick

Title:

Chief Executive Officer


EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Roger Lazarus, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 of Chain Bridge I;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) and 15d-15(e)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.

The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 10, 2023

By:

/s/ Roger Lazarus

Name:

Roger Lazarus

Title:

Chief Financial Officer


EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Chain Bridge I (the “Company”) on Form 10-Q for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Rolnick, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)

the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 10, 2023

By:

/s/ Michael Rolnick

Name:

Michael Rolnick

Title:

Chief Executive Officer


EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Chain Bridge I (the “Company”) on Form 10-Q for the quarter ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Roger Lazarus, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)

the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 10, 2023

By:

/s/ Roger Lazarus

Name:

Roger Lazarus

Title:

Chief Financial Officer


v3.23.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2023
Aug. 02, 2023
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2023  
Entity File Number 001-41047  
Entity Registrant Name CHAIN BRIDGE I  
Entity Incorporation, State or Country Code E9  
Entity Tax Identification Number 95-1578955  
Entity Address, Address Line One 330 Primrose Road, Suite 500  
Entity Address, City or Town Burlingame  
Entity Address State Or Province CA  
Entity Address, Postal Zip Code 94010  
City Area Code 202  
Local Phone Number 656-4257  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company true  
Entity Central Index Key 0001845149  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Units, each consisting of one Class A ordinary share, and one-half of one redeemable Warrant to acquire one Class A ordinary share    
Document and Entity Information    
Title of 12(b) Security Units, each consisting of one Class A ordinary share, and one-half of one redeemable Warrant to acquire one Class A ordinary share  
Trading Symbol CBRGU  
Security Exchange Name NASDAQ  
Units    
Document and Entity Information    
Entity Common Stock, Shares Outstanding   38,999
Class A Ordinary Shares    
Document and Entity Information    
Title of 12(b) Security Class A ordinary shares, par value $0.0001 per share  
Trading Symbol CBRG  
Security Exchange Name NASDAQ  
Entity Common Stock, Shares Outstanding   4,112,135
Class B ordinary shares    
Document and Entity Information    
Entity Common Stock, Shares Outstanding   5,750,000
Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50    
Document and Entity Information    
Entity Common Stock, Shares Outstanding   22,049,993
Redeemable Warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50    
Document and Entity Information    
Title of 12(b) Security Redeemable Warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50  
Trading Symbol CBRGW  
Security Exchange Name NASDAQ  
v3.23.2
CONDENSED BALANCE SHEETS - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Current assets:    
Cash $ 36,546 $ 116,320
Prepaid expenses 190,741 322,292
Total current assets 227,287 438,612
Investments held in Trust Account 44,193,476 237,796,114
Total Assets 44,420,763 238,234,726
Current liabilities:    
Accounts payable 194,281 27,056
Accrued expenses 25,709 5,433
Total current liabilities 219,990 32,489
Convertible note - related party 1,912,992 1,431,546
Derivative liabilities 1,304,711 2,547,235
Deferred legal fees 267,420 267,420
Total Liabilities 3,705,113 4,278,690
Commitments and Contingencies
Shareholders' deficit:    
Preference shares, $0.0001 par value 1,000,000 shares authorized none issued and outstanding
Accumulated deficit (3,378,401) (3,740,653)
Total shareholders' deficit (3,377,826) (3,740,078)
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Deficit 44,420,763 238,234,726
Class A ordinary shares subject to possible redemption    
Current liabilities:    
Class A ordinary shares subject to possible redemption; $0.0001 par value; 4,151,134 and 23,000,000 shares at redemption value of $10.622 and $10.335 per share at June 30, 2023 and December 31, 2022, respectively 44,093,476 237,696,114
Class B ordinary shares    
Shareholders' deficit:    
Common stock $ 575 $ 575
v3.23.2
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2023
Dec. 31, 2022
Preference shares, par value (per share) $ 0.0001 $ 0.0001
Preference shares, shares authorized 1,000,000 1,000,000
Preference shares, shares issued 0 0
Preference shares, shares outstanding 0 0
Class A ordinary shares    
Ordinary shares, par value (per share) $ 0.0001 $ 0.0001
Ordinary shares, shares authorized 479,000,000 479,000,000
Class A ordinary shares subject to possible redemption    
Class A ordinary shares subject to possible redemption, par value (per share) $ 0.0001 $ 0.0001
Class A ordinary shares subject to possible redemption, outstanding (in shares) 4,151,134 23,000,000
Class A ordinary shares subject to possible redemption, redemption value (per share) $ 10.622 $ 10.335
Class A ordinary shares not subject to possible redemption    
Ordinary shares, shares issued 0 0
Ordinary shares, shares outstanding 0 0
Class B ordinary shares    
Ordinary shares, par value (per share) $ 0.0001 $ 0.0001
Ordinary shares, shares authorized 20,000,000 20,000,000
Ordinary shares, shares issued 5,750,000 5,750,000
Ordinary shares, shares outstanding 5,750,000 5,750,000
v3.23.2
UNAUDITED CONDENSED INTERIM STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
General and administrative expenses $ 528,502 $ 226,016 $ 763,426 $ 551,948
General and administrative expenses - related party 90,000 60,000 180,000 120,000
Loss from operations (618,502) (286,016) (943,426) (671,948)
Other income (expense):        
Change in fair value of derivative liabilities 792,821 3,094,451 1,242,524 5,877,981
Change in fair value of convertible note - related party (6,886) 45,956 63,154 41,748
Income from investments held in Trust Account 1,638,070 285,925 4,251,387 364,464
Total other income (expense) 2,424,005 3,426,332 5,557,065 6,284,193
Net income $ 1,805,503 $ 3,140,316 $ 4,613,639 $ 5,612,245
Class A Ordinary Shares        
Other income (expense):        
Weighted average shares outstanding, basic 13,886,263 23,000,000 18,417,955 23,000,000
Weighted average shares outstanding, diluted 13,886,263 23,000,000 18,417,955 23,000,000
Net income per share, basic $ 0.09 $ 0.11 $ 0.19 $ 0.20
Net income per share, diluted $ 0.09 $ 0.11 $ 0.19 $ 0.20
Class B ordinary shares        
Other income (expense):        
Weighted average shares outstanding, basic 5,750,000 5,750,000 5,750,000 5,750,000
Weighted average shares outstanding, diluted 5,750,000 5,750,000 5,750,000 5,750,000
Net income per share, basic $ 0.09 $ 0.11 $ 0.19 $ 0.20
Net income per share, diluted $ 0.09 $ 0.11 $ 0.19 $ 0.20
v3.23.2
UNAUDITED CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($)
Class A ordinary shares
Ordinary Shares
Class A ordinary shares subject to possible redemption
Class B ordinary shares
Ordinary Shares
Additional Paid-in Capital
Accumulated Deficit
Total
Balance at the beginning at Dec. 31, 2021 $ 0   $ 575 $ 0 $ (11,353,029) $ (11,352,454)
Balance at the beginning (in shares) at Dec. 31, 2021 0   5,750,000      
Increase (Decrease) in Stockholders' Equity            
Net income         2,471,929 2,471,929
Balance at the end at Mar. 31, 2022     $ 575   (8,881,100) (8,880,525)
Balance at the end (in shares) at Mar. 31, 2022     5,750,000      
Balance at the beginning at Dec. 31, 2021 $ 0   $ 575 0 (11,353,029) (11,352,454)
Balance at the beginning (in shares) at Dec. 31, 2021 0   5,750,000      
Increase (Decrease) in Stockholders' Equity            
Net income           5,612,245
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption           (283,462)
Balance at the end at Jun. 30, 2022     $ 575   (6,024,246) (6,023,671)
Balance at the end (in shares) at Jun. 30, 2022     5,750,000      
Balance at the beginning at Dec. 31, 2021 $ 0   $ 575 0 (11,353,029) (11,352,454)
Balance at the beginning (in shares) at Dec. 31, 2021 0   5,750,000      
Increase (Decrease) in Stockholders' Equity            
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption   $ (3,096,114)        
Balance at the end at Dec. 31, 2022     $ 575   (3,740,653) (3,740,078)
Balance at the end (in shares) at Dec. 31, 2022     5,750,000      
Balance at the beginning at Mar. 31, 2022     $ 575   (8,881,100) (8,880,525)
Balance at the beginning (in shares) at Mar. 31, 2022     5,750,000      
Increase (Decrease) in Stockholders' Equity            
Net income         3,140,316 3,140,316
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption         (283,462) (283,462)
Balance at the end at Jun. 30, 2022     $ 575   (6,024,246) (6,023,671)
Balance at the end (in shares) at Jun. 30, 2022     5,750,000      
Balance at the beginning at Dec. 31, 2022     $ 575   (3,740,653) (3,740,078)
Balance at the beginning (in shares) at Dec. 31, 2022     5,750,000      
Increase (Decrease) in Stockholders' Equity            
Net income         2,808,136 2,808,136
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption   (2,613,317)     (2,613,317) (2,613,317)
Balance at the end at Mar. 31, 2023     $ 575   (3,545,834) (3,545,259)
Balance at the end (in shares) at Mar. 31, 2023     5,750,000      
Balance at the beginning at Dec. 31, 2022     $ 575   (3,740,653) (3,740,078)
Balance at the beginning (in shares) at Dec. 31, 2022     5,750,000      
Increase (Decrease) in Stockholders' Equity            
Net income           4,613,639
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption           (4,251,387)
Balance at the end at Jun. 30, 2023     $ 575   (3,378,401) (3,377,826)
Balance at the end (in shares) at Jun. 30, 2023     5,750,000      
Balance at the beginning at Mar. 31, 2023     $ 575   (3,545,834) (3,545,259)
Balance at the beginning (in shares) at Mar. 31, 2023     5,750,000      
Increase (Decrease) in Stockholders' Equity            
Net income         1,805,503 1,805,503
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption   $ (1,638,070)     (1,638,070) (1,638,070)
Fair value of transferred Class B Shares (non-redemption agreements)       (4,802,931)   (4,802,931)
Deemed capital contribution from non-redemption agreements       $ 4,802,931   4,802,931
Balance at the end at Jun. 30, 2023     $ 575   $ (3,378,401) $ (3,377,826)
Balance at the end (in shares) at Jun. 30, 2023     5,750,000      
v3.23.2
UNAUDITED CONDENSED INTERIM STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Cash Flows from Operating Activities:            
Net income       $ 4,613,639 $ 5,612,245  
Adjustments to reconcile net income to net cash used in operating activities:            
Change in fair value of derivative liabilities $ (792,821)   $ (3,094,451) (1,242,524) (5,877,981)  
Change in fair value of convertible note - related party 6,886   (45,956) (63,154) (41,748)  
Income from investments held in Trust Account (1,638,070)   (285,925) (4,251,387) (364,464)  
Changes in operating assets and liabilities:            
Prepaid expenses       131,551 270,657  
Accounts payable       167,225    
Accrued expenses       20,276 (36,306)  
Due to related party         630  
Net cash used in operating activities       (624,374) (436,967)  
Cash Flows from Investing Activities:            
Cash withdrawn from Trust Account in connection with redemption       197,854,025    
Net cash provided by investing activities       197,854,025    
Cash Flows from Financing Activities:            
Proceeds from convertible note - related party       544,600    
Redemption of Class A ordinary shares       (197,854,025)    
Net cash used in financing activities       (197,309,425)    
Net change in cash       (79,774) (436,967)  
Cash - beginning of the period   $ 116,320   116,320 740,639 $ 740,639
Cash - end of the period 36,546   303,672 36,546 303,672 $ 116,320
Supplemental disclosure of noncash financing activities:            
Deemed capital contribution from non-redemption agreements       4,802,931    
Fair value of transferred Class B shares (non-redemption agreements)       (4,802,931)    
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption $ 1,638,070 $ 2,613,317 $ 283,462 $ 4,251,387 $ 283,462  
v3.23.2
Description of Organization and Business Operations
6 Months Ended
Jun. 30, 2023
Description of Organization and Business Operations  
Description of Organization and Business Operations

Note 1 — Description of Organization and Business Operations

Chain Bridge I (the “Company”) is a blank check company incorporated as a Cayman Islands exempted company on January 21, 2021. The Company was incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses that the Company has not yet identified (“Business Combination”). Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to focus on partnering with a technology company that will advance U.S. national security and intelligence interests.

As of June 30, 2023, the Company had not yet commenced operations. All activity for the period from January 21, 2021 (inception) through June 30, 2023 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), which is described below, and since the closing of the Initial Public Offering, the search for a prospective 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 31st as its fiscal year end.

The Company’s sponsor is Chain Bridge Group, a Cayman Islands exempted limited liability company (the “Sponsor”). The registration statement for the Company’s Initial Public Offering was declared effective on November 9, 2021. On November 15, 2021, the Company consummated its Initial Public Offering of 23,000,000 units (the “Units” and, with respect to the Class A ordinary shares included in the Units being offered, the “Public Shares”), including 3,000,000 additional Units to cover over-allotments (the “Over-Allotment Units”), at $10.00 per Unit, generating gross proceeds of $230.0 million, and incurring offering costs of approximately $5.7 million, of which approximately $254,000 was for offering costs allocated to derivative warrant liabilities.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the private placement (“Private Placement”) of 10,550,000 warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”), at a price of $1.00 per Private Placement Warrant to the Sponsor and CB Co-Investment LLC (“CB Co-Investment”), generating proceeds of approximately $10.6 million (Note 4).

In addition, upon closing of the Initial Public Offering, CB Co-Investment loaned the Company $1,150 thousand at no interest (the “CB Co-Investment Loan”). On November 16, 2022, the Sponsor agreed to loan the Company up to $1,200 thousand pursuant to an unsecured non-interest bearing convertible promissory note (“Additional Convertible Note”). Such Additional Convertible Note will not be repaid in the event that the Company is unable to close a Business Combination unless there are funds available outside the Trust Account to do so. Such Additional Convertible Note would either be paid upon consummation of the Company’s initial Business Combination, or, at the discretion of Sponsor, converted into additional warrants at a price of $1.00 per warrant, which warrants will be identical to the Private Placement Warrants. As of June 30, 2023 and December 31, 2022, the Company had an outstanding balance of $894,600 and $350,000, respectively, under the Additional Convertible Note. (Note 5).

Upon the closing of the Initial Public Offering, $234.6 million ($10.20 per Unit) of net proceeds, including the net proceeds of the Initial Public Offering, certain of the proceeds of the Private Placement and the proceeds from the convertible promissory note issued to CB Co-Investment, were placed in a trust account (“Trust Account”) with Continental Stock Transfer & Trust Company acting as trustee and invested in United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended, or the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account as described below.

The Company’s management has broad discretion with respect to the specific application of the net proceeds of its Initial Public Offering and the sale of Private Placement Warrants and the proceeds from the promissory note issued to CB Co-Investment, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The Company’s initial Business Combination must be with one or more operating businesses or assets with a fair value equal to at least 80% of the net assets held in the Trust Account (excluding taxes payable on the interest earned on the trust account) at the time the Company signs a definitive agreement in connection with the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the partner business or otherwise acquires a controlling interest in the partner business sufficient for it not to be required to register as an investment company under the Investment Company Act.

The Company will provide its holders of the Public Shares (the “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 general 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. The Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account. The Company expects the pro rata price to be $10.20 per share (such amount may be increased by $0.10 per Public Share for each three-month extension of the time to consummate the initial Business Combination, as described below), plus 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). These Public Shares will be recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity” (“ASC 480”). In such case, the Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and a majority of the shares voted are voted in favor of the Business Combination. If a shareholder vote is not required by 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 the Amended and Restated Memorandum and Articles of Association, which was adopted by the Company upon the consummation of the Initial Public Offering (the “Amended and Restated Memorandum and Articles of Association”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (the “SEC”), and file tender offer documents with the SEC prior to completing a Business Combination. If, however, a shareholder approval of the transactions is required by applicable law or stock exchange listing requirements, or the Company decides to obtain shareholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. 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. If the Company seeks shareholder approval in connection with a Business Combination, the holders of the Founder Shares prior to this Initial Public Offering (the “Initial Shareholders”), and the executive officers and directors of the Company, agreed to vote their Founder Shares (as defined in Note 5) and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination. In addition, the Initial Shareholders agreed to waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of a Business Combination. In addition, the Company agreed not to enter into a definitive agreement regarding an initial Business Combination without the prior consent of the Sponsor.

Notwithstanding the foregoing, the Company’s Amended and Restated Memorandum and Articles of Association 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% or more of the Class A ordinary shares sold in the Initial Public Offering, without the prior consent of the Company.

As a result of the amendment to the Company’s amended and restated articles of association approved by the Company’s shareholders, as discussed below, the Company has until November 15, 2023 (the “Extended Date”) to consummate an initial Business Combination. However, if the Company anticipates that it may not be able to consummate the initial Business Combination by the Extended Date, the Company may, by resolution of its board if requested by the Sponsor, extend the period of time to consummate a Business Combination up to three times, each by an additional month up to February 15, 2024 (the “Additional Extended Date”), the date (the “Termination Date”) by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities (a “Business Combination”), the Company must (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible

but not more than ten business days thereafter, redeem the Class A ordinary shares sold in the Company’s initial public offering (the “Public Shares”); and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law.

The Company’s Sponsor, officers and directors agreed not to propose an amendment to the Company’s Amended and Restated Memorandum and Articles of Association (A) to modify the substance or timing of the Company’s obligation to allow the redemption of its Public Shares in connection with a Business Combination or to redeem 100% of its Public Shares if the Company does not complete a Business Combination within 24 months from the closing of the Initial Public Offering or (B) with respect to any other provisions relating to shareholders’ rights or pre-initial business combination activity, unless the Company provides the Public Shareholders with the opportunity to redeem their Class A ordinary shares in conjunction with any such amendment.

If the Company is unable to complete a Business Combination within 24 months, or November 15, 2023 (or within up to 27 months, if elected to further extend the date to consummate an initial business combination after the Extended Date up to three times, by an additional month each time, up to February 15, 2024), the Company will (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem the Public Shares, at a per share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its income taxes, if any (less up to $100,000 of interest to pay dissolution expenses), divided by the number of the then-outstanding Public Shares, which redemption will completely extinguish Public Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the board of directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii), to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law.

On May 12, 2023, at an extraordinary general meeting of its shareholders (the “Special Meeting”) the Company’s shareholders approved a proposal to amend the Company’s existing amended and restated articles of association to extend from May 15, 2023 to November 15, 2023 (the “Extended Date”) and to allow the board of directors of the Company, without another shareholder vote, to elect to further extend the date to consummate an initial business combination after the Extended Date up to three times, by an additional month each time, up to February 15, 2024, the date by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities, the Company must: (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the shares sold in the Company’s initial public offering; and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. In connection with such shareholder vote, the holders of an aggregate of 18,848,866 Class A ordinary shares of the Company exercised their right to redeem their shares for an aggregate of approximately $197,854,025 in cash held in the Trust Account.

In connection with the Special Meeting, the Company, the Sponsor and CB Co-Investment have entered into non-redemption agreements (the “Non-Redemption Agreements”), with several unaffiliated third parties (“Investors”), pursuant to which such third parties agreed not to redeem (or to validly rescind any redemption requests on) an aggregate of 4,000,000 Public Shares (“Non-Redeemed Shares”) in connection with the Special Meeting. In exchange for the foregoing commitments not to redeem such Public Shares, the Sponsor and CB Co-Investment, as applicable, agreed to transfer an aggregate of 1,000,000 ordinary shares of the Company held by the Sponsor or CB Co-Investment, as applicable, plus up to an additional aggregate of 500,000 ordinary shares of the Company held by the Sponsor or CB Co-Investment, as applicable, with such number of additional ordinary shares of the Company to be determined based upon the date of the consummation of the Company’s initial business combination immediately following consummation of an initial business combination. On June 13, 2023, the Company received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) indicating that since the Company’s aggregate market value of its outstanding warrants was less than $1 million, the Company was no longer in compliance with the Nasdaq Global Market continued listing criteria set forth in Listing Rule 5452(b)(C), which requires the Company to maintain an aggregate market value of its outstanding warrants of at least $1 million (the “Notice”). The Notice additionally indicates that the Company, pursuant to the Listing Rules had until July 28, 2023, to submit a plan to regain compliance. The Company did not submit to Nasdaq such a plan to regain compliance.

On June 14, 2023, the board of directors of the Company approved the grant of 30,000 restricted stock units (“RSUs”) to Mr. Roger Lazarus as compensation for services provided to the Company. Such RSUs will be granted to Mr. Lazarus upon the effectiveness of a registration statement filed by the Company with the U.S. Securities and Exchange Commission covering the RSUs and the shares issuable upon settlement of the RSUs, subject, in each case, to the Letter Agreement. (see Note 6).

The Initial Shareholders agreed to waive their liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the Initial Shareholders should acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. The underwriters agreed to waive their rights to the Marketing Fee (see Note 6) held in the Trust Account in the event the Company does not complete a Business Combination within in the Combination Period and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Company’s Public Shares. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution in the Trust Account will be less than the $10.20 per share initially held in the Trust Account. In order to protect the amounts held in the Trust Account, the Sponsor agreed that it will 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 partner business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or business combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.20 per Public Share and (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 $10.20 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective partner business who executed a waiver of any and all rights to the monies held in 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”). In the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have vendors, service providers (except the Company’s independent registered public accounting firm), prospective partner 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. There can be no guarantee that the Company will be successful in obtaining such waivers from its targeted vendors and service providers.

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 of 2002, 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 statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Risks and Uncertainties

Management continues to evaluate the impact of the COVID-19 pandemic, including new variant strains of the underlying virus, current or anticipated military conflict, including between Russia and Ukraine, terrorism, sanctions or other geopolitical events as well as adverse developments in the economy and capital markets, including rising energy costs, inflation and interest rates, in the United States and globally, on the industry and has concluded that while it is reasonably possible that these events could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of the condensed interim financial statements. The condensed interim financial statements do not include any adjustments that might result from the outcome of this uncertainty.

On March 10, 2023, Silicon Valley Bank (“SVB”) was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver. On March 12, 2023, the FDIC, the Department of Treasury and the Federal Reserve issued a joint statement indicating that actions would be taken to complete the FDIC’s resolution of SVB in a manner that protects depositors. The financial institution was reopened by the FDIC on March 13, 2023, with customers having full access to their deposits and debt facilities as at the time of the closure. On March 26, 2023, the FDIC entered into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association with First Citizens Bank & Trust Company. Management has evaluated the situation and since the Company is not a borrower or party to any such instruments with SVB or any other financial institution currently in receivership, there is no material impact on the condensed interim financial statements of the Company.

On May 1, 2023, First Republic Bank was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all of the deposits and substantially all of the assets of First Republic Bank. Management has evaluated the situation and determined there is no material impact on the condensed interim financial statements of the Company.

Liquidity and Capital Resources

As of June 30, 2023, the Company had approximately $37,000 in its operating bank account and working capital of approximately $7,000.

The Company’s liquidity needs prior to the consummation of the Initial Public Offering were satisfied through the payment of $25,000 from the Sponsor and CB Co-Investment to cover for certain expenses on behalf of the Company in exchange for issuance of Founder Shares (as defined in Note 5) and a loan from related party of approximately $244,000. The Company fully repaid the Note on November 17, 2021. Subsequent to the consummation of the Initial Public Offering, the Company’s liquidity has been satisfied through the net proceeds from the consummation of the Initial Public Offering, the Private Placement held outside of the Trust Account and the issuance of the Convertible Notes. As of June 30, 2023 and December 31, 2022, there was $2,044,600 and $1,500,000, respectively, outstanding under the working capital loans (convertible notes).

The Company has until November 15, 2023 (the “Extended Date”) to consummate an initial Business Combination. However, if the Company anticipates that it may not be able to consummate the initial Business Combination by the Extended Date, the Company may, by resolution of its board if requested by the Sponsor, extend the period of time to consummate a Business Combination up to

three times, each by an additional month up to February 15, 2024 (the “Additional Extended Date”), the date (the “Termination Date”) by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities (a “Business Combination”), the Company must (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Class A ordinary shares sold in the Company’s initial public offering (the “Public Shares”); and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law.

In connection with our assessment of going concern considerations in accordance with FASB Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” the Company has determined that the liquidity condition and the date for mandatory liquidation and subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after November 15, 2023. The condensed interim financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

v3.23.2
Basis of Presentation and Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2023
Basis of Presentation and Summary of Significant Accounting Policies  
Basis of Presentation and Summary of Significant Accounting Policies

Note 2 — Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed interim financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed interim financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the period presented. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected through December 31, 2023.

The accompanying unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K filed by the Company with the SEC on March 17, 2023.

Use of Estimates

The preparation of condensed interim financial statements in conformity with GAAP requires 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 condensed interim financial statements and the reported amounts of income and expenses during the reporting period. Making estimates require 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 condensed interim 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 significantly 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. As of June 30, 2023 and December 31, 2022, the Company had no cash equivalents.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation (“FDIC”) coverage limit of $250,000 per institution. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Financial Instruments

The fair value of the Company’s assets and liabilities which qualify as financial instruments under the FASB ASC Topic 820, “Fair Value Measurements,” equal or approximate the carrying amounts represented in the condensed balance sheets primarily due to their short-term nature.

Fair Value Measurements

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers consist of:

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

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

Offering Costs Associated with the Initial Public Offering

The Company complies with the requirements of FASB ASC 340-10-S99-1. Offering costs consisted of legal, accounting, underwriting fees and other costs incurred that were directly related to the Initial Public Offering. Upon completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs allocated to the derivative warrant liabilities were charged to operations. Offering costs associated with the Class A ordinary shares were charged against the carrying value of Class A ordinary shares subject to possible redemption upon the completion of the Initial Public Offering.

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company evaluates all of the financial instruments, including issued stock purchase warrants, and forward purchase agreements, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, will be re-assessed at the end of each reporting period. Derivative warrant liabilities will be classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.

The 22,050,000 warrants that were issued in connection with the Initial Public Offering (including the 11,500,000 warrants included in the Units and the 10,550,000 Private Placement Warrants) and the 4,000,000 forward purchase securities (“Forward Purchase Securities”), were recognized as derivative liabilities in accordance with ASC 815. Accordingly, the Company recognized the warrant instruments as liabilities at fair value and adjust the instruments to fair value at each reporting period. The liabilities will be subject to re-measurement at each balance sheet date until exercised. The fair value of the Forward Purchase Securities, Public Warrants and the Private Placement Warrants were initially measured using a Monte Carlo simulation. The fair value of Public Warrants issued in

connection with the Initial Public Offering have subsequently been measured based on the listed market price of such Public Warrants. As of June 30, 2023 and December 31, 2022, the fair value of the Forward Purchase Securities are measured using a Monte Carlo simulation, and the fair value of the convertible note is measured using Black-Scholes model. As of June 30, 2023 and December 31, 2022, the fair value of Private Placement Warrants was determined based on the quoted price of the Public Warrants.

Class A Ordinary Shares Subject to Possible Redemption

The Company accounts for the Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC 480. Class A ordinary shares subject to mandatory redemption (if any) is classified as liability instruments and are measured at fair value. Conditionally redeemable Class A ordinary shares (including Class ordinary shares that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) are classified as temporary equity. At all other times, Class A ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of our control and subject to the occurrence of uncertain future events. Accordingly, as of June 30, 2023 and December 31, 2022, 4,151,134 and 23,000,000 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 condensed balance sheets, respectively.

On May 12, 2023, the Company held an extraordinary general meeting of its shareholders (the “Special Meeting”) at which the Company’s shareholders approved a proposal to amend the Company’s existing amended and restated articles of association to extend from May 15, 2023 to November 15, 2023 (the “Extended Date”) and to allow the board of directors of the Company, without another shareholder vote, to elect to further extend the date to consummate an initial business combination after the Extended Date up to three times, by an additional month each time, up to February 15, 2024, the date by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities, the Company must: (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the shares sold in the Company’s initial public offering; and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. In connection with such shareholder vote, the holders of an aggregate of 18,848,866 Class A ordinary shares of the Company exercised their right to redeem their shares for an aggregate of approximately $197,854,025 in cash held in the Trust Account. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of the Class A ordinary shares subject to possible redemption to equal the redemption value at the end of each reporting period. This method would view the end of the reporting period as if it were also the redemption date for the security. Effective with the closing of the Initial Public Offering (including exercise of the over-allotment option), the Company recognized the accretion from initial book value to redemption amount, which resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit.

As of June 30, 2023 and December 31, 2022, the amounts of Class A ordinary shares reflected on the condensed balance sheets are reconciled in the following table:

Gross proceeds from Initial Public Offering

    

$

230,000,000

Less:

Fair value of Public Warrants at issuance

(8,740,000)

Offering costs allocated to Class A ordinary shares subject to possible redemption

(5,469,344)

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

18,809,344

Class A ordinary shares subject to possible redemption, December 31, 2021

234,600,000

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

3,096,114

Class A ordinary shares subject to possible redemption, December 31, 2022

237,696,114

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

2,613,317

Class A ordinary shares subject to possible redemption, March 31, 2023

240,309,431

Less:

Redemptions of Class A ordinary shares

(197,854,025)

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

1,638,070

Class A ordinary shares subject to possible redemption, June 30, 2023

$

44,093,476

Net Income Per Share

The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Income are shared pro rata between the two classes of shares. Net income per ordinary share is calculated by dividing the net income by the weighted average shares of ordinary shares outstanding for the respective period.

The calculation of diluted net income does not consider the effect of the warrants underlying the Units sold in the Initial Public Offering (including the consummation of the over-allotment) and the Private Placement Warrants to purchase an aggregate of 22,050,000 Class A ordinary shares in the calculation of diluted income per share, because their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted net income per share is the same as basic net income per share for the three and six months ended June 30, 2023 and 2022. Accretion associated with the redeemable Class A ordinary shares is excluded from earnings per share as the redemption value approximates fair value.

The Company has considered the effect of Class B ordinary shares that were excluded from weighted average number as they were contingent on the exercise of over-allotment option by the underwriters. Since the contingency was satisfied, the Company has included these shares in the weighted average number as of the beginning of the period to determine the dilutive impact of these shares.

The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income per share for each class of ordinary shares:

For the Three Months Ended

For the Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

    

Class A

    

Class B

    

Class A

    

Class B

    

Class A

    

Class B

    

Class A

    

Class B

Basic and diluted net income per ordinary share

 

 

Numerator:

 

 

Allocation of net income

$

1,276,805

$

528,697

$

2,512,253

$

628,063

$

3,515,970

$

1,097,669

$

4,489,796

$

1,122,449

Denominator:

Basic and diluted weighted average ordinary shares outstanding

13,886,263

5,750,000

23,000,000

5,750,000

18,417,955

5,750,000

23,000,000

5,750,000

Basic and diluted net income per ordinary share

$

0.09

$

0.09

$

0.11

$

0.11

$

0.19

$

0.19

$

0.20

$

0.20

Recent Accounting Pronouncements

In June 2022, the FASB issued ASU 2022-03, ASC Subtopic 820 “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The ASU amends ASC 820 to clarify that a contractual sales restriction is not considered in measuring an equity security at fair value and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The ASU applies to both holders and issuers of equity and equity-linked securities measured at fair value. The amendments in this ASU are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the condensed interim financial statements.

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 condensed interim financial statements.

v3.23.2
Initial Public Offering
6 Months Ended
Jun. 30, 2023
Initial Public Offering  
Initial Public Offering

Note 3 — Initial Public Offering

On November 15, 2021, the Company consummated its Initial Public Offering of 23,000,000 Units, including 3,000,000 Over-Allotment Units, at $10.00 per Unit, generating gross proceeds of $230.0 million, and incurring offering costs of approximately $5.7 million, of which approximately $254,000 was for offering costs allocated to derivative warrant liabilities.

Each Unit consists of one Class A ordinary share and one-half of one redeemable warrant (“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, subject to adjustment (see Note 8).

v3.23.2
Private Placement Warrants
6 Months Ended
Jun. 30, 2023
Private Placement Warrants  
Private Placement Warrants

Note 4 — Private Placement Warrants

Simultaneously with the closing of the Initial Public Offering, the Company consummated the Private Placement of 10,550,000 Private Placement Warrants, at a price of $1.00 per Private Placement Warrant to the Sponsor and CB Co-Investment, generating proceeds of approximately $10.6 million.

Each whole Private Placement Warrant is exercisable for one whole Class A ordinary share at a price of $11.50 per share. A portion of the proceeds from the sale of the Private Placement Warrants was added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the Private Placement Warrants will expire worthless. The Private Placement Warrants will be non-redeemable except as described below in Note 8 and exercisable on a cashless basis.

The Sponsor and the Company’s officers and directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their Private Placement Warrants until 30 days after the completion of the initial Business Combination.

v3.23.2
Related Party Transactions
6 Months Ended
Jun. 30, 2023
Related Party Transactions  
Related Party Transactions

Note 5 — Related Party Transactions

Founder Shares

On February 3, 2021, the Sponsor and CB Co-Investment paid an aggregate of $25,000 for certain expenses on behalf of the Company in exchange for issuance of an aggregate of 8,625,000 Class B ordinary shares (the “Founder Shares”). The Sponsor purchased 7,195,714 of the Founder Shares and CB Co-Investment purchased 1,429,286 of the Founder Shares. On April 9, 2021, CB Co-Investment transferred 28,571 Founder Shares to the Sponsor at their original purchase price. On October 1, 2021, the Sponsor forfeited 2,408,095 and CB Co-Investment forfeited 466,905 Founder Shares, in each case, for no consideration.

On November 9, 2021, the Sponsor transferred an aggregate of 156,000 Founder Shares to three of the Company’s directors, the chief financial officer and two of the Company’s advisors. As a result, the Sponsor had 4,660,190 Founder Shares and CB Co-Investment had 933,810 Founder Shares outstanding. The transfer of the Founder Shares is in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon the grant date. The Founders Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founders Shares is recognized only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance. As of June 30, 2023, the Company determined that a Business Combination is not considered probable, and, therefore, no stock-based compensation expense has been recognized. Stock-based compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number of Founders Shares that ultimately vest multiplied times the grant date fair value per share (unless subsequently modified) less the amount initially received for the purchase of the Founders Shares.

The Sponsor and CB Co-Investment agreed to forfeit up to an aggregate of 750,000 Founder Shares to the extent that the option to purchase additional Units was not exercised in full by the underwriters, so that the Founder Shares would represent 20% of the Company’s issued and outstanding shares after the Initial Public Offering. The underwriters exercised their over-allotment option in full on November 15, 2021; thus, these 750,000 Founder Shares were no longer subject to forfeiture.

On October 13, 2022, the Sponsor exercised its right to repurchase 12,500 Class B ordinary shares from Nathaniel Fick for an aggregate purchase price of $54.35, due to his resignation from the board of directors of the Company, effective as of August 1, 2022, pursuant to that certain Share Transfer Agreement, among the Company, the sponsor and Nathaniel Fick, dated November 9, 2021.

The Initial Shareholders, and the executive officers and directors of the Company, agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (A) one year after the completion of the initial Business Combination and (B) subsequent to the initial Business Combination, (x) if the closing price of Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, share exchange, reorganization 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, Notwithstanding the foregoing, if the closing price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, the Founder Shares will be released from the lockup.

Related Party Loans

Promissory Note to Sponsor

On February 1, 2021, the Sponsor agreed to loan the Company up to $300,000 to be used for the payment of costs related to the Initial Public Offering pursuant to a promissory note (the “Note”). The Note was non-interest bearing, unsecured and due upon the closing of the Initial Public Offering. The Company had borrowed approximately $244,000 under the Note. The Company fully repaid this amount on November 17, 2021.

Convertible Note — Related Party

Upon closing of the Initial Public Offering, CB Co-Investment loaned the Company approximately $1.2 million to deposit into Trust Account, in exchange for a non-interest bearing, unsecured convertible promissory note (“Convertible Note”). Such Convertible Note will not be repaid in the event that the Company is unable to close a Business Combination unless there are funds available outside the Trust Account to do so. Such promissory note would either be paid upon consummation of the Company’s initial Business Combination, or, at the discretion of CB Co-Investment and/or its designees, converted into additional warrants at a price of $1.00 per warrant.

On November 16, 2022, the Sponsor agreed to loan the Company up to $1.2 million pursuant to an unsecured non-interest bearing convertible promissory note (“Additional Convertible Note”). Such Additional Convertible Note will not be repaid in the event that the Company is unable to close a Business Combination unless there are funds available outside the Trust Account to do so. Such Additional Convertible Note would either be paid upon consummation of the Company’s initial Business Combination, or, at the discretion of Sponsor, converted into additional warrants at a price of $1.00 per warrant, which warrants will be identical to the Private Placement Warrants. As of June 30, 2023 and December 31, 2022, a total of $894,600 and $350,000, respectively, have been drawn under the Additional Convertible Note.

Working Capital Loan

In addition, 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 may 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 Convertible Note and the Working Capital Loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1.5 million of the 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. As of June 30, 2023 and December 31, 2022, there was $2,044,600 and $1,500,000, respectively, outstanding under the working capital loans (convertible notes).

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.

Administrative Services Agreement

On November 9, 2021, the Company entered into an agreement that provided that, the Company pay the Sponsor $20,000 per month for office space, secretarial and administrative services provided to the Company through the earlier of consummation of the initial Business Combination and the liquidation. On July 14, 2022, the Company entered into an Amended and Restated Administrative Services Agreement with the Sponsor, to increase the amount payable to the Sponsor (in an amount not to exceed the aggregate sum of $30,000 per month). For the three and six months ended June 30, 2023, the Company incurred expenses of $90,000 and $180,000 under this agreement, respectively. For the three and six months ended June 30, 2022, the Company incurred expenses of $60,000 and $120,000 under this agreement, respectively.

In addition, the Sponsor, officers and directors, and any of their respective affiliates will be reimbursed for any out-of-pocket expenses incurred in connection with activities on the Company’s behalf such as identifying potential partner businesses and performing due diligence on suitable Business Combinations. The audit committee will review on a quarterly basis all payments that were made by the Company to the Sponsor, officers or directors, or the Company’s or their affiliates. Any such payments prior to an initial Business Combination will be made from funds held outside the Trust Account.

As of June 30, 2023 and December 31, 2022, the Company had no outstanding balance payable to a related party as it relates to this agreement.

v3.23.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2023
Commitments and Contingencies  
Commitments and Contingencies

Note 6 — Commitments and Contingencies

Registration Rights and Shareholder Rights

The holders of the Founder Shares, Private Placement Warrants, Class A ordinary shares underlying the Private Placement Warrants, the Forward Purchase Securities and warrants that may be issued upon conversion of the Convertible Note and the Working Capital Loans (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants, Forward Purchase Warrants and warrants that may be issued upon conversion of such loans) were entitled to registration rights pursuant to a registration and shareholder rights agreement signed upon the effective date of the Initial Public Offering. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company registers such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of the initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The Company granted the underwriters a 45-day option from the date of the final prospectus relating to the Initial Public Offering to purchase up to 3,000,000 additional Units at the Initial Public Offering price less the underwriting discounts and commissions. The underwriters exercised their over-allotment option in full on November 15, 2021.

The underwriters were entitled to an underwriting discount of $0.20 per Unit, or $4.6 million in the aggregate, paid upon the closing of the Initial Public Offering.

Business Combination Marketing Agreement

On November 9, 2021, the Company entered into an agreement with one of the underwriters, Cowen and Company, LLC, as advisors in connection with the Company’s Business Combination to assist the Company in holding meetings with the shareholders to discuss the potential Business Combination and the target business’ attributes, introduce the Company to potential investors that are interested in purchasing the Company’s securities in connection with the potential Business Combination, assist the Company in obtaining shareholder approval for the Business Combination and assist the Company with its press releases and public filings in connection with the Business Combination. The Company agreed to pay a fee for such services (the “Marketing Fee”) upon the consummation of the initial Business Combination in an amount equal to, in the aggregate, 3.5% of the gross proceeds of the Initial Public Offering, or approximately $8.1 million in the aggregate. As a result, the underwriters will not be entitled to such fee unless the Company consummates its initial Business Combination. As of June 30, 2023 and December 31, 2022, the Company determined that a Business Combination is not considered probable.

Forward Purchase Agreement

Franklin Strategic Series — Franklin Growth Opportunities Fund (“Franklin”)on November 1, 2021  entered into a forward purchase agreement (“Forward Purchase Agreement”) with the Company that provides for the purchase by Franklin, in the aggregate, of 6,000,000 Forward Purchase Securities, for an aggregate purchase price of $40.0 million, with each Forward Purchase Security consisting of one Class A ordinary share and one-half of one redeemable warrant in each case, for an aggregate of 4,000,000 Class A ordinary shares and 2,000,000 redeemable warrants, for $10.00 per Forward Purchase Security, in a private placement to close substantially concurrently with the closing of the initial Business Combination. The obligations under the Forward Purchase Agreement will not depend on whether any Class A ordinary shares are redeemed by the Public Shareholders.

The Forward Purchase Securities will not have any redemption rights in connection with the initial Business Combination and will not be entitled to liquidating distributions from the Trust Account if the Company fails to complete the initial Business Combination within the prescribed time frame. The Forward Purchase Securities, to the extent issued prior to the record date for a shareholder vote on the initial Business Combination or any other matter, will have the right to vote on such matter with all other holders of the outstanding Class A ordinary shares; provided that if the Company seeks shareholder approval of a proposed initial Business Combination after Franklin has purchased the Forward Purchase Securities, Franklin agreed under the forward purchase agreement to vote any of the Class A ordinary shares owned by Franklin in favor of any proposed initial Business Combination.

The Forward Purchase Securities sold pursuant to the Forward Purchase Agreement will be identical to the Class A ordinary shares and redeemable warrants included in the Units being sold in the Initial Public Offering, except as described herein. In addition, the Forward Purchase Securities will have certain registration rights, so long as such Forward Purchase Securities are held by Franklin or any third party to which Franklin transfers any portion of its obligation under the Forward Purchase Agreement.

The capital from such private placement would be used as part of the consideration to the sellers in the initial Business Combination, and any excess capital from such private placement would be used for working capital in the post-transaction company.

Non-Redemptions Agreements

In connection with the extraordinary general meeting of shareholders (the “Special Meeting”) of the Company, to extend the date by which the Company has to consummate a business combination (the “Articles Extension”) from May 15, 2023 to November 15, 2023 (with right to extend additionally for three 1 month increments through February 15, 2024) the Company, the Sponsor (or the “Seller”)

and CB Co-Investment have entered into one or more non-redemption agreements (the “Non-Redemption Agreements”), with several unaffiliated third parties (“Investors”), pursuant to which such third parties agreed not to redeem (or to validly rescind any redemption requests on) an aggregate of 4,000,000 previously-held Class A ordinary shares of the Company (“Non-Redeemed Shares”) in connection with the Articles Extension. In exchange for the foregoing commitments not to redeem such previously-held Class A ordinary shares, the Sponsor and CB Co-Investment, as applicable, agreed to transfer an aggregate of 1,000,000 ordinary shares of the Company held by the Sponsor or CB Co-Investment, as applicable, plus up to an additional aggregate of 500,000 ordinary shares of the Company held by the Sponsor or CB Co-Investment, as applicable, with such number of additional ordinary shares of the Company to be determined based upon the date of the consummation of the Company’s initial business combination  immediately following consummation of an initial business combination.

The Company estimated the aggregate fair value of a weighted number of founder shares based on the likelihood of consummating an initial business combination beyond November 15, 2023, or 1,166,663 founder shares, attributable to the Non-Redeeming Stockholders to be $4,802,931 or $4.12 per share. Each Non-Redeeming Shareholder acquired from the Sponsor an indirect economic interest in the founder shares. The excess of the fair value of the founder shares was determined to be an offering cost in accordance with Staff Accounting Bulletin Topic 5A. Accordingly, in substance, it was recognized by the Company as a capital contribution by the Sponsor to induce these holders of the Class A shares not to redeem, with a corresponding charge to additional paid-in capital to recognize the fair value of the shares transferred as an offering cost.

The fair value of the founder shares were based on a Monte Carlo Model using the following significant inputs:

    

May 10, 2023

 

Stock price

$

10.42

Risk free rate

 

4.25

%

Remaining life

 

1.56

Volatility

 

5.4

%

Probability of transaction

 

40

%

Letter and Joinder Agreement

In connection with the grant of the RSUs to Mr. Lazarus, the Company and Mr. Lazarus entered into Letter Agreement dated June 15, 2023 and Joinder Agreement dated June 20, 2023. Pursuant to which, among other things, the Company agreed to grant Mr. Lazarus 30,000 RSUs of the Company subject to the terms and conditions set forth therein; Mr. Lazarus has agreed to vote any Class B ordinary shares and Class A ordinary shares held by him in favor of the Company’s initial business combination; facilitate the liquidation and winding up of the Company if an initial business combination is not consummated within the time period required by its Amended and Restated Memorandum and Articles of Association; and certain transfer restrictions with respect to the Company’s securities. Pursuant to which Mr. Lazarus became a party to that certain Registration and Shareholder Rights Agreement, dated November 9, 2021, among the Company, the Sponsor, CB Co-Investment and certain equity holders of the Company, which provides for, among other things, customary demand and piggy-back registration rights.

v3.23.2
Shareholders' Deficit
6 Months Ended
Jun. 30, 2023
Shareholders' Deficit  
Shareholders' Deficit

Note 7 — Shareholders’ Deficit

Preference Shares — The Company is authorized to issue 1,000,000 preference 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 Company’s board of directors. As of June 30, 2023 and December 31, 2022, there were no preference shares issued or outstanding.

Class A Ordinary shares — The Company is authorized to issue 479,000,000 Class A ordinary shares with a par value of $0.0001 per share. Holders of the Company’s Class A ordinary shares are entitled to one vote for each share. As of June 30, 2023 and December 31, 2022, there were 4,151,134 and 23,000,000 Class A ordinary shares outstanding, all of which were classified as temporary equity in the accompanying condensed balance sheets, respectively.

Class B Ordinary shares The Company is authorized to issue 20,000,000 Class B ordinary shares with a par value of $0.0001 per share. As of June 30, 2023 and December 31, 2022, there were 5,750,000 Class B ordinary shares issued and outstanding. Of the 5,750,000 Class B ordinary shares outstanding, up to 750,000 shares were subject to forfeiture, to the Company by the Initial Shareholders for no consideration to the extent that the underwriters’ overallotment option was not exercised in full, so that the Initial Shareholders would collectively own 20% of the Company’s issued and outstanding ordinary shares after the Initial Public Offering. The underwriters exercised their over-allotment option in full on November 15, 2021; thus, these 750,000 Class B ordinary shares were no longer subject to forfeiture.

Class A and Class B ordinary shareholders of record are entitled to one vote for each share held on all matters to be voted on by shareholders. Except as described below, holders of Class A ordinary shares and holders of Class B ordinary shares will vote together as a single class on all matters submitted to a vote of the shareholders except as required by law. Prior to the initial Business Combination, only holders of the Founder Shares will have the right to vote on the appointment of directors. Holders of the Public Shares will not be entitled to vote on the appointment of directors during such time. In addition, prior to the completion of an initial Business Combination, holders of a majority of the Founder Shares may remove a member of the board of directors for any reason. The provisions of the Amended and Restated Memorandum and Articles of Association governing the appointment or removal of directors prior to the initial Business Combination may only be amended by a special resolution passed by holders representing at least two-thirds of the issued and outstanding Class B ordinary shares.

The Class B ordinary shares will automatically convert into Class A ordinary shares on the first business day following the consummation of the initial Business Combination at a ratio such that the number of Class A ordinary shares issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of (i) the total number of ordinary shares issued and outstanding upon the consummation of the Initial Public Offering, plus the sum of the total number of Class A ordinary shares issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the consummation of the initial Business Combination (net of any redemptions of Class A ordinary shares by Public Shareholders), excluding any Class A ordinary shares or equity-linked securities exercisable for or convertible into Class A ordinary shares issued, deemed issued, or to be issued, to any seller in the initial Business Combination, and any Forward Purchase Securities and any Private Placement Warrants issued to the Sponsor or CB Co-Investment, members of the Company’s founding team or any of their affiliates upon conversion of the Convertible Note and Working Capital Loans. In no event will the Class B ordinary shares convert into Class A ordinary shares at a rate of less than one-to-one.

v3.23.2
Warrants
6 Months Ended
Jun. 30, 2023
Warrants  
Warrants

Note 8 —Warrants

As of June 30, 2023 and December 31, 2022, the Company had 11,500,000 Public Warrants and 10,550,000 Private Placement Warrants outstanding.

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 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 warrants on a cashless basis under certain circumstances). The Company 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 commercially reasonable efforts to file with the SEC a registration statement covering the 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, as specified in the warrant agreement. If a registration statement covering the Class A ordinary shares issuable upon exercise of the warrants is not effective by the 60th day after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, 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 they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” and, in the event the Company so elects, the Company will not be

required to file or maintain in effect a registration statement, and in the event the Company does not so elect, it will use commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

The warrants have an exercise price of $11.50 per share, subject to adjustments, and will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. In addition, if (x) the Company issues additional Class A ordinary 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 Class A ordinary share (with such issue price or effective issue price to be determined in good faith by the board of directors and, in the case of any such issuance to Franklin, the initial shareholders or their affiliates, without taking into account any founder shares held by the initial shareholders or such affiliates, as applicable, or any forward purchase securities held by Franklin, prior to such issuance including any transfer or reissuance of such shares) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination on the date of the consummation of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of Class A ordinary shares during the 10-trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price (and the $10.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price See “— Redemption of warrants for cash when the price per class A ordinary share equals or exceeds $18.00” and “— Redemption of warrants for Class A ordinary shares when the price per class A ordinary share equals or exceeds $10.00” as described below).

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except (i) that the Private Placement Warrants and the Class A ordinary shares issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions, (ii) except as described below, the Private Placement Warrants will be non-redeemable so long as they are held by the Sponsor, CB Co-Investment or their respective permitted transferees and (iii) the Sponsor or its permitted transferees will have the option to exercise the Private Placement Warrants on a cashless basis and have certain 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.

Redemption of warrant when the price per share of Class A ordinary shares equals or exceeds $18.00. Once warrants become exercisable, the Company may redeem the outstanding warrants for cash:

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 to each warrant holder; and
if, and only if, the closing price of Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders (the “Reference Value”).

Redemption of warrants when the price per share of Class A ordinary shares equals or exceeds $10.00. Once the warrants become exercisable, the Company may redeem the outstanding warrants:

in whole and not in part;
at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of Class A ordinary shares to be determined by reference to an agreed table based on the redemption date and the “fair market value” of Class A ordinary shares;
if, and only if, the closing price of Class A ordinary shares equals or exceeds $10.00 per Public Share (as adjusted per share subdivisions, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within the 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders; and
if the Reference Value is less than $18.00 per share (as adjusted for share splits, share dividends, rights issuances, subdivisions, reorganizations, recapitalizations and the like), then the Private Placement Warrants must also concurrently be called for redemption on the same terms (except as described herein with respect to a holder’s ability to cashless exercise its warrants) as the outstanding Public Warrants as described above.

The “fair value” of Class A ordinary shares for the above purpose shall mean the volume weighted average price of Class A ordinary shares during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of warrants. In no event will the warrants be exercisable on a cashless basis in connection with this redemption feature for more than 0.361 Class A ordinary shares per warrant (subject to adjustment).

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, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless.

v3.23.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2023
Fair Value Measurements  
Fair Value Measurements

Note 9 —Fair Value Measurements

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value.

June 30, 2023 (unaudited)

    

Quoted Prices in

    

Significant Other

    

Significant Other

Active Markets

Observable Inputs

Unobservable Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Assets:

Investments held in Trust Account - U.S. Treasury Securities

$

44,193,476

$

$

Liabilities:

 

 

 

Convertible note - related party

$

$

$

1,912,992

Derivative liabilities- Public Warrants

$

575,000

$

$

Derivative liabilities- Private Placement Warrants

$

$

527,500

$

Derivative liabilities - Forward Purchase Agreement

$

$

$

202,211

December 31, 2022

    

Quoted Prices in

    

Significant Other

    

Significant Other

Active Markets

Observable Inputs

Unobservable Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Assets:

Investments held in Trust Account - U.S. Treasury Securities (1)

$

237,795,799

$

$

Liabilities:

 

 

 

Convertible note - related party

$

$

$

1,431,546

Derivative liabilities- Public Warrants

$

1,150,000

$

$

Derivative liabilities- Private Placement Warrants

$

$

1,055,000

$

Derivative liabilities - Forward Purchase Agreement

$

$

$

342,235

(1)Excludes $315 of cash balance held within the Trust Account

Transfers to/from Levels 1, 2, and 3 are recognized at the beginning of the reporting period. The estimated fair value of Public Warrants was transferred from a Level 3 measurement to a Level 1 measurement, when the Public Warrants were separately listed and traded in an active market in December 2021. The estimated fair value of the Private Placement Warrants was transferred from a Level 3 measurement to a Level 2 fair value measurement in January 2022, as the transfer of Private Placement Warrants to anyone who is not a permitted transferee would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined that the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant. There were no other transfers between levels of the hierarchy for the three and six months ended June 30, 2023.

Level 1 assets include investments in U.S. treasury securities. The Company uses inputs such as actual trade data, quoted market prices from dealers or brokers, and other similar sources to determine the fair value of its investments.

The initial estimated fair value as of November 15, 2021, of the Public Warrants, the Private Placement Warrants, and the Forward Purchase Agreement is measured at fair value using a Monte Carlo simulation, determined using Level 3 inputs. The fair value of Public Warrants issued in connection with the Initial Public Offering have subsequently been measured based on the listed market price of such warrants. As of June 30, 2023 and December 31, 2022, the fair value of the Forward Purchase Securities are measured using a Monte Carlo simulation, and the fair value of the convertible note is measured using a Black-Scholes model. As of June 30, 2023 and December 31, 2022, the fair value of Private Placement Warrants was determined based on the quoted price of the Public Warrants. Inherent in a Monte Carlo simulation and Black-Scholes model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield.

The following table provides quantitative information regarding Level 3 fair value measurements inputs at June 30, 2023 and December 31, 2022 measurement date:

June 30, 2023 (unaudited)

    

    

Forward Purchase

    

    

 

    

Warrants

    

Agreements

    

Convertible Note

 

Exercise price

$

11.50

$

10.00

$

1.00

Stock price

$

10.51

$

9.63

$

0.05

Term (years)

 

5.38

 

0.38

 

0.38

Volatility

 

6.0

%  

 

 

38.2

%

Risk-free rate

 

4.02

%  

 

5.31

%  

 

5.31

%

Dividend yield

 

0.0

%  

 

0.0

%  

 

0.0

%

December 31, 2022

    

    

    

Forward Purchase

    

    

 

Warrants

Agreements

Convertible Note

 

Exercise price

$

11.50

$

10.00

$

1.00

Stock price

$

10.28

$

10.85

$

0.10

Term (years)

 

5.29

 

0.29

 

0.29

Volatility

 

6.0

%  

 

 

42.3

%

Risk-free rate

 

3.91

%  

 

4.37

%  

 

4.37

%

Dividend yield

 

0.0

%  

 

0.0

%  

 

0.0

%

The change in the fair value of the derivative liabilities measured using Level 3 inputs for the three and six months ended June 30, 2023 and 2022, is summarized as follows:

Derivative liabilities at December 31, 2022

    

$

342,235

Change in fair value of derivative warrant liabilities

 

(7,603)

Derivative liabilities at March 31, 2023 (unaudited)

334,632

Change in fair value of derivative warrant liabilities

(132,421)

Derivative liabilities at June 30, 2023 (unaudited)

$

202,211

Derivative liabilities at December 31, 2021

    

$

5,694,560

Transfer of Private Placement Warrants to Level 2

 

(5,301,100)

Change in fair value of derivative liabilities

 

385,990

Derivative liabilities at March 31, 2022 (unaudited)

779,450

Change in fair value of derivative liabilities

(7,451)

Derivative liabilities at June 30, 2022 (unaudited)

$

771,999

The change in the fair value of the convertible note – related party measured using Level 3 inputs for the three and six months ended June 30, 2023 and 2022, is summarized as follows:

Convertible note - related party at December 31, 2022

    

$

1,431,546

Additional issuance of convertible note - related party

 

391,000

Change in fair value of convertible note - related party

 

(70,040)

Convertible note - related party at March 31, 2023 (unaudited)

1,752,506

Additional issuance of convertible note - related party

153,600

Change in fair value of convertible note - related party

6,886

Convertible note - related party at June 30, 2023 (unaudited)

$

1,912,992

Convertible note - related party at December 31, 2021

    

$

1,053,556

Change in fair value of convertible note - related party

4,208

Convertible note - related party at March 31, 2022 (unaudited)

$

1,057,764

Change in fair value of convertible note - related party

(45,956)

Convertible note - related party at June 30, 2022 (unaudited)

$

1,011,808

v3.23.2
Subsequent Events
6 Months Ended
Jun. 30, 2023
Subsequent Events  
Subsequent Events

Note 10 — Subsequent Events

The Company has evaluated subsequent events and transactions that occurred up to the date the unaudited condensed interim financial statements were issued. Based upon this review, the Company did not identify any subsequent events, that would have required adjustment or disclosure in the unaudited condensed interim financial statements.

v3.23.2
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2023
Basis of Presentation and Summary of Significant Accounting Policies  
Emerging Growth Company

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 of 2002, 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 statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Risks and Uncertainties

Risks and Uncertainties

Management continues to evaluate the impact of the COVID-19 pandemic, including new variant strains of the underlying virus, current or anticipated military conflict, including between Russia and Ukraine, terrorism, sanctions or other geopolitical events as well as adverse developments in the economy and capital markets, including rising energy costs, inflation and interest rates, in the United States and globally, on the industry and has concluded that while it is reasonably possible that these events could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of the condensed interim financial statements. The condensed interim financial statements do not include any adjustments that might result from the outcome of this uncertainty.

On March 10, 2023, Silicon Valley Bank (“SVB”) was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver. On March 12, 2023, the FDIC, the Department of Treasury and the Federal Reserve issued a joint statement indicating that actions would be taken to complete the FDIC’s resolution of SVB in a manner that protects depositors. The financial institution was reopened by the FDIC on March 13, 2023, with customers having full access to their deposits and debt facilities as at the time of the closure. On March 26, 2023, the FDIC entered into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association with First Citizens Bank & Trust Company. Management has evaluated the situation and since the Company is not a borrower or party to any such instruments with SVB or any other financial institution currently in receivership, there is no material impact on the condensed interim financial statements of the Company.

Liquidity and Capital Resources

Liquidity and Capital Resources

As of June 30, 2023, the Company had approximately $37,000 in its operating bank account and working capital of approximately $7,000.

The Company’s liquidity needs prior to the consummation of the Initial Public Offering were satisfied through the payment of $25,000 from the Sponsor and CB Co-Investment to cover for certain expenses on behalf of the Company in exchange for issuance of Founder Shares (as defined in Note 5) and a loan from related party of approximately $244,000. The Company fully repaid the Note on November 17, 2021. Subsequent to the consummation of the Initial Public Offering, the Company’s liquidity has been satisfied through the net proceeds from the consummation of the Initial Public Offering, the Private Placement held outside of the Trust Account and the issuance of the Convertible Notes. As of June 30, 2023 and December 31, 2022, there was $2,044,600 and $1,500,000, respectively, outstanding under the working capital loans (convertible notes).

The Company has until November 15, 2023 (the “Extended Date”) to consummate an initial Business Combination. However, if the Company anticipates that it may not be able to consummate the initial Business Combination by the Extended Date, the Company may, by resolution of its board if requested by the Sponsor, extend the period of time to consummate a Business Combination up to

three times, each by an additional month up to February 15, 2024 (the “Additional Extended Date”), the date (the “Termination Date”) by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities (a “Business Combination”), the Company must (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Class A ordinary shares sold in the Company’s initial public offering (the “Public Shares”); and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law.

In connection with our assessment of going concern considerations in accordance with FASB Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” the Company has determined that the liquidity condition and the date for mandatory liquidation and subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after November 15, 2023. The condensed interim financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed interim financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed interim financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the period presented. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected through December 31, 2023.

The accompanying unaudited condensed interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K filed by the Company with the SEC on March 17, 2023.

Use of Estimates

Use of Estimates

The preparation of condensed interim financial statements in conformity with GAAP requires 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 condensed interim financial statements and the reported amounts of income and expenses during the reporting period. Making estimates require 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 condensed interim 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 significantly from those estimates.

Cash and Cash Equivalents

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. As of June 30, 2023 and December 31, 2022, the Company had no cash equivalents.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation (“FDIC”) coverage limit of $250,000 per institution. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Financial Instruments

Financial Instruments

The fair value of the Company’s assets and liabilities which qualify as financial instruments under the FASB ASC Topic 820, “Fair Value Measurements,” equal or approximate the carrying amounts represented in the condensed balance sheets primarily due to their short-term nature.

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers consist of:

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

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

Offering Costs Associated with the Initial Public Offering

Offering Costs Associated with the Initial Public Offering

The Company complies with the requirements of FASB ASC 340-10-S99-1. Offering costs consisted of legal, accounting, underwriting fees and other costs incurred that were directly related to the Initial Public Offering. Upon completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs allocated to the derivative warrant liabilities were charged to operations. Offering costs associated with the Class A ordinary shares were charged against the carrying value of Class A ordinary shares subject to possible redemption upon the completion of the Initial Public Offering.

Derivative Financial Instruments

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company evaluates all of the financial instruments, including issued stock purchase warrants, and forward purchase agreements, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, will be re-assessed at the end of each reporting period. Derivative warrant liabilities will be classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.

The 22,050,000 warrants that were issued in connection with the Initial Public Offering (including the 11,500,000 warrants included in the Units and the 10,550,000 Private Placement Warrants) and the 4,000,000 forward purchase securities (“Forward Purchase Securities”), were recognized as derivative liabilities in accordance with ASC 815. Accordingly, the Company recognized the warrant instruments as liabilities at fair value and adjust the instruments to fair value at each reporting period. The liabilities will be subject to re-measurement at each balance sheet date until exercised. The fair value of the Forward Purchase Securities, Public Warrants and the Private Placement Warrants were initially measured using a Monte Carlo simulation. The fair value of Public Warrants issued in

connection with the Initial Public Offering have subsequently been measured based on the listed market price of such Public Warrants. As of June 30, 2023 and December 31, 2022, the fair value of the Forward Purchase Securities are measured using a Monte Carlo simulation, and the fair value of the convertible note is measured using Black-Scholes model. As of June 30, 2023 and December 31, 2022, the fair value of Private Placement Warrants was determined based on the quoted price of the Public Warrants.

Class A Ordinary Shares Subject to Possible Redemption

Class A Ordinary Shares Subject to Possible Redemption

The Company accounts for the Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC 480. Class A ordinary shares subject to mandatory redemption (if any) is classified as liability instruments and are measured at fair value. Conditionally redeemable Class A ordinary shares (including Class ordinary shares that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) are classified as temporary equity. At all other times, Class A ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of our control and subject to the occurrence of uncertain future events. Accordingly, as of June 30, 2023 and December 31, 2022, 4,151,134 and 23,000,000 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 condensed balance sheets, respectively.

On May 12, 2023, the Company held an extraordinary general meeting of its shareholders (the “Special Meeting”) at which the Company’s shareholders approved a proposal to amend the Company’s existing amended and restated articles of association to extend from May 15, 2023 to November 15, 2023 (the “Extended Date”) and to allow the board of directors of the Company, without another shareholder vote, to elect to further extend the date to consummate an initial business combination after the Extended Date up to three times, by an additional month each time, up to February 15, 2024, the date by which, if the Company has not consummated a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination involving the Company, with one or more businesses or entities, the Company must: (a) cease all operations except for the purpose of winding up; (b) as promptly as reasonably possible but not more than ten business days thereafter, redeem the shares sold in the Company’s initial public offering; and (c) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the directors, liquidate and dissolve, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. In connection with such shareholder vote, the holders of an aggregate of 18,848,866 Class A ordinary shares of the Company exercised their right to redeem their shares for an aggregate of approximately $197,854,025 in cash held in the Trust Account. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of the Class A ordinary shares subject to possible redemption to equal the redemption value at the end of each reporting period. This method would view the end of the reporting period as if it were also the redemption date for the security. Effective with the closing of the Initial Public Offering (including exercise of the over-allotment option), the Company recognized the accretion from initial book value to redemption amount, which resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit.

As of June 30, 2023 and December 31, 2022, the amounts of Class A ordinary shares reflected on the condensed balance sheets are reconciled in the following table:

Gross proceeds from Initial Public Offering

    

$

230,000,000

Less:

Fair value of Public Warrants at issuance

(8,740,000)

Offering costs allocated to Class A ordinary shares subject to possible redemption

(5,469,344)

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

18,809,344

Class A ordinary shares subject to possible redemption, December 31, 2021

234,600,000

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

3,096,114

Class A ordinary shares subject to possible redemption, December 31, 2022

237,696,114

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

2,613,317

Class A ordinary shares subject to possible redemption, March 31, 2023

240,309,431

Less:

Redemptions of Class A ordinary shares

(197,854,025)

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

1,638,070

Class A ordinary shares subject to possible redemption, June 30, 2023

$

44,093,476

Net Income Per Share

Net Income Per Share

The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Income are shared pro rata between the two classes of shares. Net income per ordinary share is calculated by dividing the net income by the weighted average shares of ordinary shares outstanding for the respective period.

The calculation of diluted net income does not consider the effect of the warrants underlying the Units sold in the Initial Public Offering (including the consummation of the over-allotment) and the Private Placement Warrants to purchase an aggregate of 22,050,000 Class A ordinary shares in the calculation of diluted income per share, because their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted net income per share is the same as basic net income per share for the three and six months ended June 30, 2023 and 2022. Accretion associated with the redeemable Class A ordinary shares is excluded from earnings per share as the redemption value approximates fair value.

The Company has considered the effect of Class B ordinary shares that were excluded from weighted average number as they were contingent on the exercise of over-allotment option by the underwriters. Since the contingency was satisfied, the Company has included these shares in the weighted average number as of the beginning of the period to determine the dilutive impact of these shares.

The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income per share for each class of ordinary shares:

For the Three Months Ended

For the Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

    

Class A

    

Class B

    

Class A

    

Class B

    

Class A

    

Class B

    

Class A

    

Class B

Basic and diluted net income per ordinary share

 

 

Numerator:

 

 

Allocation of net income

$

1,276,805

$

528,697

$

2,512,253

$

628,063

$

3,515,970

$

1,097,669

$

4,489,796

$

1,122,449

Denominator:

Basic and diluted weighted average ordinary shares outstanding

13,886,263

5,750,000

23,000,000

5,750,000

18,417,955

5,750,000

23,000,000

5,750,000

Basic and diluted net income per ordinary share

$

0.09

$

0.09

$

0.11

$

0.11

$

0.19

$

0.19

$

0.20

$

0.20

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In June 2022, the FASB issued ASU 2022-03, ASC Subtopic 820 “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The ASU amends ASC 820 to clarify that a contractual sales restriction is not considered in measuring an equity security at fair value and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The ASU applies to both holders and issuers of equity and equity-linked securities measured at fair value. The amendments in this ASU are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the condensed interim financial statements.

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 condensed interim financial statements.

v3.23.2
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2023
Basis of Presentation and Summary of Significant Accounting Policies  
Schedule of reconciliation of Class A ordinary shares reflected on the balance sheets

Gross proceeds from Initial Public Offering

    

$

230,000,000

Less:

Fair value of Public Warrants at issuance

(8,740,000)

Offering costs allocated to Class A ordinary shares subject to possible redemption

(5,469,344)

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

18,809,344

Class A ordinary shares subject to possible redemption, December 31, 2021

234,600,000

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

3,096,114

Class A ordinary shares subject to possible redemption, December 31, 2022

237,696,114

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

2,613,317

Class A ordinary shares subject to possible redemption, March 31, 2023

240,309,431

Less:

Redemptions of Class A ordinary shares

(197,854,025)

Plus:

Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption

1,638,070

Class A ordinary shares subject to possible redemption, June 30, 2023

$

44,093,476

Schedule of reconciliation of the numerator and denominator used to compute basic and diluted net income (loss) per share

For the Three Months Ended

For the Six Months Ended

June 30, 

June 30, 

2023

2022

2023

2022

    

Class A

    

Class B

    

Class A

    

Class B

    

Class A

    

Class B

    

Class A

    

Class B

Basic and diluted net income per ordinary share

 

 

Numerator:

 

 

Allocation of net income

$

1,276,805

$

528,697

$

2,512,253

$

628,063

$

3,515,970

$

1,097,669

$

4,489,796

$

1,122,449

Denominator:

Basic and diluted weighted average ordinary shares outstanding

13,886,263

5,750,000

23,000,000

5,750,000

18,417,955

5,750,000

23,000,000

5,750,000

Basic and diluted net income per ordinary share

$

0.09

$

0.09

$

0.11

$

0.11

$

0.19

$

0.19

$

0.20

$

0.20

v3.23.2
Commitments and Contingencies (Tables)
6 Months Ended
Jun. 30, 2023
Commitments and Contingencies  
Schedule of significant inputs for fair value of the founder shares

    

May 10, 2023

 

Stock price

$

10.42

Risk free rate

 

4.25

%

Remaining life

 

1.56

Volatility

 

5.4

%

Probability of transaction

 

40

%

v3.23.2
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2023
Fair Value Measurements  
Schedule of Company's assets and liabilities that are measured at fair value on a recurring basis

June 30, 2023 (unaudited)

    

Quoted Prices in

    

Significant Other

    

Significant Other

Active Markets

Observable Inputs

Unobservable Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Assets:

Investments held in Trust Account - U.S. Treasury Securities

$

44,193,476

$

$

Liabilities:

 

 

 

Convertible note - related party

$

$

$

1,912,992

Derivative liabilities- Public Warrants

$

575,000

$

$

Derivative liabilities- Private Placement Warrants

$

$

527,500

$

Derivative liabilities - Forward Purchase Agreement

$

$

$

202,211

December 31, 2022

    

Quoted Prices in

    

Significant Other

    

Significant Other

Active Markets

Observable Inputs

Unobservable Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Assets:

Investments held in Trust Account - U.S. Treasury Securities (1)

$

237,795,799

$

$

Liabilities:

 

 

 

Convertible note - related party

$

$

$

1,431,546

Derivative liabilities- Public Warrants

$

1,150,000

$

$

Derivative liabilities- Private Placement Warrants

$

$

1,055,000

$

Derivative liabilities - Forward Purchase Agreement

$

$

$

342,235

(1)Excludes $315 of cash balance held within the Trust Account
Schedule of quantitative information regarding Level 3 fair value measurements inputs

June 30, 2023 (unaudited)

    

    

Forward Purchase

    

    

 

    

Warrants

    

Agreements

    

Convertible Note

 

Exercise price

$

11.50

$

10.00

$

1.00

Stock price

$

10.51

$

9.63

$

0.05

Term (years)

 

5.38

 

0.38

 

0.38

Volatility

 

6.0

%  

 

 

38.2

%

Risk-free rate

 

4.02

%  

 

5.31

%  

 

5.31

%

Dividend yield

 

0.0

%  

 

0.0

%  

 

0.0

%

December 31, 2022

    

    

    

Forward Purchase

    

    

 

Warrants

Agreements

Convertible Note

 

Exercise price

$

11.50

$

10.00

$

1.00

Stock price

$

10.28

$

10.85

$

0.10

Term (years)

 

5.29

 

0.29

 

0.29

Volatility

 

6.0

%  

 

 

42.3

%

Risk-free rate

 

3.91

%  

 

4.37

%  

 

4.37

%

Dividend yield

 

0.0

%  

 

0.0

%  

 

0.0

%

Schedule of change in the fair value of the derivative liabilities measured using Level 3 inputs

Derivative liabilities at December 31, 2022

    

$

342,235

Change in fair value of derivative warrant liabilities

 

(7,603)

Derivative liabilities at March 31, 2023 (unaudited)

334,632

Change in fair value of derivative warrant liabilities

(132,421)

Derivative liabilities at June 30, 2023 (unaudited)

$

202,211

Derivative liabilities at December 31, 2021

    

$

5,694,560

Transfer of Private Placement Warrants to Level 2

 

(5,301,100)

Change in fair value of derivative liabilities

 

385,990

Derivative liabilities at March 31, 2022 (unaudited)

779,450

Change in fair value of derivative liabilities

(7,451)

Derivative liabilities at June 30, 2022 (unaudited)

$

771,999

Schedule of change in the fair value of the convertible note - related party measured using Level 3 inputs

Convertible note - related party at December 31, 2022

    

$

1,431,546

Additional issuance of convertible note - related party

 

391,000

Change in fair value of convertible note - related party

 

(70,040)

Convertible note - related party at March 31, 2023 (unaudited)

1,752,506

Additional issuance of convertible note - related party

153,600

Change in fair value of convertible note - related party

6,886

Convertible note - related party at June 30, 2023 (unaudited)

$

1,912,992

Convertible note - related party at December 31, 2021

    

$

1,053,556

Change in fair value of convertible note - related party

4,208

Convertible note - related party at March 31, 2022 (unaudited)

$

1,057,764

Change in fair value of convertible note - related party

(45,956)

Convertible note - related party at June 30, 2022 (unaudited)

$

1,011,808

v3.23.2
Description of Organization and Business Operations (Details)
6 Months Ended
May 12, 2023
USD ($)
item
shares
Nov. 15, 2021
USD ($)
$ / shares
shares
Jun. 30, 2023
USD ($)
item
$ / shares
shares
Jun. 14, 2023
shares
Dec. 31, 2022
USD ($)
Nov. 16, 2022
$ / shares
Nov. 16, 2021
USD ($)
Description of Organization and Business Operations              
Condition for future business combination number of businesses minimum | item     1        
Share price | $ / shares     $ 9.20        
Pro rata redemption price per share | $ / shares     10.20        
Increase in pro rata redemption price per share | $ / shares     $ 0.10        
Additional extension period to consummate Business Combination     3 months        
Period to consummate initial Business Combination     24 months        
Maximum period to consummate initial Business Combination     27 months        
Maximum number of times board of directors allowed for extending the date to consummation of business combination | item 3            
Threshold period for redemption of shares if the business combination not consummated 10 days            
Operating bank accounts     $ 37,000        
Working capital     $ 7,000        
Restricted Stock Units (RSU) | CFO              
Description of Organization and Business Operations              
Number of shares approved for grant as compensation for service | shares     30,000 30,000      
Non-Redemption Agreements              
Description of Organization and Business Operations              
Number of shares third parties agreed not to redeem shares | shares 4,000,000   4,000,000        
Number of ordinary shares agreed to transfer for non-redemption of shares | shares 1,000,000   1,000,000        
Additional maximum number of ordinary shares for non-redemption of shares | shares 500,000   500,000        
Class A Ordinary Shares Subject to Possible Redemption [Member]              
Description of Organization and Business Operations              
Number of ordinary shares exercised to redeem | shares 18,848,866            
Value of ordinary shares exercised to redeem $ 197,854,025            
Additional convertible note              
Description of Organization and Business Operations              
Additional convertible note related party     $ 894,600   $ 350,000    
Working capital loans warrant              
Description of Organization and Business Operations              
Price of warrant | $ / shares     $ 1.00        
Loan conversion agreement warrant     $ 1,500,000        
Additional convertible note related party     $ 2,044,600   $ 1,500,000    
IPO              
Description of Organization and Business Operations              
Number of units sold | shares   23,000,000          
Purchase price, per unit | $ / shares   $ 10.00          
Gross proceeds from initial public offering   $ 230,000,000.0          
Offering costs   5,700,000          
Threshold minimum aggregate fair market value as a percentage of the net assets held in the Trust Account     80.00%        
Threshold percentage of outstanding voting securities of the target to be acquired by post-transaction company to complete business combination     50.00%        
Minimum net tangible assets upon consummation of business combination     $ 5,000,001        
Threshold percentage of public shares subject to redemption without company prior written consent     15.00%        
Obligation to redeem Public Shares if entity does not complete a Business Combination (as a percent)     100.00%        
Threshold business days for redemption of public shares     10 days        
Maximum net interest to pay dissolution expenses     $ 100,000        
IPO | Warrants              
Description of Organization and Business Operations              
Offering costs   254,000          
IPO | Private Placement Warrants              
Description of Organization and Business Operations              
Gross proceeds from initial public offering   $ 234,600,000          
Sale of private placement warrants (in shares) | shares   10,550,000          
Price of warrant | $ / shares   $ 1.00          
Share price | $ / shares   $ 10.20 $ 10.20        
Proceeds from sale of private placement warrants   $ 10,600,000          
Over-allotment option              
Description of Organization and Business Operations              
Number of units sold | shares   3,000,000          
Sponsor              
Description of Organization and Business Operations              
Aggregate purchase price     $ 25,000        
Sponsor | Additional convertible note              
Description of Organization and Business Operations              
Loan conversion agreement warrant             $ 1,200,000
Sponsor | Private Placement Warrants | Additional convertible note              
Description of Organization and Business Operations              
Price of warrant | $ / shares           $ 1.00  
Sponsor | Private Placement | Private Placement Warrants              
Description of Organization and Business Operations              
Sale of private placement warrants (in shares) | shares   10,550,000          
Price of warrant | $ / shares   $ 1.00          
Proceeds from sale of private placement warrants   $ 10,600,000          
Cb co. investment              
Description of Organization and Business Operations              
Price of warrant | $ / shares     $ 1.00        
Loan conversion agreement warrant   $ 1,150,000 $ 1,200,000        
Cb co. investment | Private Placement Warrants              
Description of Organization and Business Operations              
Price of warrant | $ / shares   $ 1.00          
Cb co. investment | IPO              
Description of Organization and Business Operations              
Proceeds from Related Party Debt     $ 244,000        
v3.23.2
Basis of Presentation and Summary of Significant Accounting Policies (Details)
May 12, 2023
USD ($)
item
shares
Jun. 30, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
shares
Basis of Presentation and Summary of Significant Accounting Policies      
Cash equivalents | $   $ 0 $ 0
Warrants outstanding   22,050,000  
Maximum number of times board of directors allowed for extending the date to consummation of business combination | item 3    
Threshold period for redemption of shares if the business combination not consummated 10 days    
Forward Purchase Agreements      
Basis of Presentation and Summary of Significant Accounting Policies      
Warrants outstanding   4,000,000  
Private Placement Warrants      
Basis of Presentation and Summary of Significant Accounting Policies      
Warrants outstanding   10,550,000  
Public Warrants      
Basis of Presentation and Summary of Significant Accounting Policies      
Warrants outstanding   11,500,000  
Class A ordinary shares      
Basis of Presentation and Summary of Significant Accounting Policies      
Shares subject to forfeiture   22,050,000  
Class A ordinary shares subject to possible redemption      
Basis of Presentation and Summary of Significant Accounting Policies      
Class A ordinary shares subject to possible redemption, outstanding (in shares)   4,151,134 23,000,000
Number of ordinary shares exercised to redeem 18,848,866    
Value of ordinary shares exercised to redeem | $ $ 197,854,025    
v3.23.2
Basis of Presentation and Summary of Significant Accounting Policies - Class A ordinary shares (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Basis of Presentation and Summary of Significant Accounting Policies              
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption $ 1,638,070 $ 2,613,317 $ 283,462 $ 4,251,387 $ 283,462    
Class A ordinary shares subject to possible redemption              
Basis of Presentation and Summary of Significant Accounting Policies              
Gross proceeds from Initial Public Offering             $ 230,000,000
Fair value of Public Warrants at issuance             (8,740,000)
Offering costs allocated to Class A ordinary shares subject to possible redemption             (5,469,344)
Redemptions of Class A ordinary shares       (197,854,025)      
Deemed dividend - increase in redemption value of Class A ordinary shares subject to possible redemption 1,638,070 2,613,317       $ 3,096,114 18,809,344
Class A ordinary shares subject to possible redemption $ 44,093,476 $ 240,309,431   $ 44,093,476   $ 237,696,114 $ 234,600,000
v3.23.2
Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of net income (loss) per share (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Class A Ordinary Shares        
Numerator:        
Allocation of net income - basic $ 1,276,805 $ 2,512,253 $ 3,515,970 $ 4,489,796
Allocation of net income - diluted $ 1,276,805 $ 2,512,253 $ 3,515,970  
Denominator:        
Weighted average shares outstanding, basic 13,886,263 23,000,000 18,417,955 23,000,000
Weighted average shares outstanding, diluted 13,886,263 23,000,000 18,417,955 23,000,000
Net income per share, basic $ 0.09 $ 0.11 $ 0.19 $ 0.20
Net income per share, diluted $ 0.09 $ 0.11 $ 0.19 $ 0.20
Class B ordinary shares        
Numerator:        
Allocation of net income - basic $ 528,697 $ 628,063 $ 1,097,669 $ 1,122,449
Allocation of net income - diluted $ 528,697 $ 628,063 $ 1,097,669 $ 1,122,449
Denominator:        
Weighted average shares outstanding, basic 5,750,000 5,750,000 5,750,000 5,750,000
Weighted average shares outstanding, diluted 5,750,000 5,750,000 5,750,000 5,750,000
Net income per share, basic $ 0.09 $ 0.11 $ 0.19 $ 0.20
Net income per share, diluted $ 0.09 $ 0.11 $ 0.19 $ 0.20
v3.23.2
Initial Public Offering (Details) - USD ($)
Nov. 15, 2021
Jun. 30, 2023
Initial Public Offering    
Exercise price of warrants   $ 11.50
IPO    
Initial Public Offering    
Number of units sold 23,000,000  
Purchase price, per unit $ 10.00  
Gross proceeds from initial public offering $ 230,000,000.0  
Offering costs 5,700,000  
IPO | Warrants    
Initial Public Offering    
Offering costs $ 254,000  
IPO | Class A Ordinary Shares | Public Warrants    
Initial Public Offering    
Number of shares in a unit 1  
Number of warrants in a unit 0.5  
Number of shares issuable per warrant 1  
Exercise price of warrants $ 11.50  
Over-allotment option    
Initial Public Offering    
Number of units sold 3,000,000  
v3.23.2
Private Placement Warrants (Details) - USD ($)
$ / shares in Units, $ in Millions
6 Months Ended
Nov. 15, 2021
Jun. 30, 2023
Private Placement Warrants    
Exercise price of warrants   $ 11.50
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination   30 days
Private Placement Warrants    
Private Placement Warrants    
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination 30 days  
Private Placement Warrants | Class A ordinary share    
Private Placement Warrants    
Number of shares per warrant 1  
Exercise price of warrants $ 11.50  
IPO | Private Placement Warrants    
Private Placement Warrants    
Number of warrants to purchase shares issued 10,550,000  
Price of warrants $ 1.00  
Aggregate purchase price $ 10.6  
v3.23.2
Related Party Transactions - Founder Shares (Details) - USD ($)
6 Months Ended
Oct. 13, 2022
Nov. 15, 2021
Nov. 09, 2021
Apr. 09, 2021
Feb. 03, 2021
Jun. 30, 2023
Dec. 31, 2022
Oct. 01, 2021
Related Party Transaction                
Aggregate purchase price           $ 9.20    
Stock-based compensation expense           $ 0    
Restrictions on transfer period of time after business combination completion           1 year    
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination           20 days    
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination           30 days    
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences           150 days    
Over-allotment option                
Related Party Transaction                
Number of shares issued   3,000,000            
Class B ordinary shares                
Related Party Transaction                
Shares subject to forfeiture           750,000 750,000  
Number of shares no longer subject to forfeiture   750,000            
Class A Ordinary Shares                
Related Party Transaction                
Shares subject to forfeiture           22,050,000    
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share)           $ 12.00    
Sponsor                
Related Party Transaction                
Aggregate purchase price           $ 25,000    
Sponsor | Private Placement | Private Warrants                
Related Party Transaction                
Number of warrants to purchase shares issued   10,550,000            
Price of warrants   $ 1.00            
Cb co. investment                
Related Party Transaction                
Price of warrants           $ 1.00    
Cb co. investment | Private Warrants                
Related Party Transaction                
Price of warrants   $ 1.00            
Founder shares                
Related Party Transaction                
Shares subject to forfeiture           750,000    
Percentage of issued and outstanding shares after the Initial Public Offering collectively held by initial stockholders           20.00%    
Number of shares no longer subject to forfeiture   750,000            
Founder shares | Class B ordinary shares                
Related Party Transaction                
Aggregate purchase price $ 54.35              
Shares issue in exchange         8,625,000      
Number of shares issued 12,500              
Founder shares | Sponsor                
Related Party Transaction                
Number of shares issued         7,195,714      
Number of shares transferred by the founder member     156,000          
Shares subject to forfeiture               2,408,095
Aggregate number of shares owned     4,660,190          
Founder shares | Sponsor | Class B ordinary shares                
Related Party Transaction                
Aggregate purchase price         $ 25,000      
Founder shares | Cb co. investment                
Related Party Transaction                
Number of shares issued         1,429,286      
Number of shares transferred by the founder member       28,571        
Shares subject to forfeiture               466,905
Aggregate number of shares owned     933,810          
v3.23.2
Related Party Transactions - Additional Information (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jul. 14, 2022
Nov. 17, 2021
Nov. 09, 2021
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Nov. 16, 2022
Nov. 16, 2021
Nov. 15, 2021
Feb. 01, 2021
Related Party Transaction                        
Amount drawn           $ 544,600            
Expenses incurred       $ 90,000 $ 60,000 $ 180,000 $ 120,000          
Maximum period to consummate initial Business Combination           27 months            
Additional extension period to consummate Business Combination           3 months            
Working capital loans warrant                        
Related Party Transaction                        
Additional convertible note related party       $ 2,044,600   $ 2,044,600   $ 1,500,000        
Price of warrant       $ 1.00   $ 1.00            
Loan conversion agreement warrant       $ 1,500,000   $ 1,500,000            
Promissory note with related party                        
Related Party Transaction                        
Maximum borrowing capacity of related party promissory note                       $ 300,000
Additional convertible note related party                       $ 244,000
Repayment of promissory note - related party   $ 244,000                    
Convertible Note - Related Party | Working capital loans warrant                        
Related Party Transaction                        
Outstanding balance           2,044,600   1,500,000        
Additional convertible note                        
Related Party Transaction                        
Additional convertible note related party       894,600   894,600   350,000        
Administrative services agreement                        
Related Party Transaction                        
Expenses incurred     $ 20,000                  
Due to related parties       $ 0   $ 0   0        
Cb co. investment                        
Related Party Transaction                        
Price of warrant       $ 1.00   $ 1.00            
Loan conversion agreement warrant       $ 1,200,000   $ 1,200,000         $ 1,150,000  
Cb co. investment | Private Warrants                        
Related Party Transaction                        
Price of warrant                     $ 1.00  
Sponsor | Additional convertible note                        
Related Party Transaction                        
Maximum borrowing capacity of related party promissory note                 $ 1,200,000      
Amount drawn           $ 894,600   $ 350,000        
Loan conversion agreement warrant                   $ 1,200,000    
Sponsor | Additional convertible note | Private Warrants                        
Related Party Transaction                        
Price of warrant                 $ 1.00      
Sponsor | Amended and restated administrative services agreement                        
Related Party Transaction                        
Expenses incurred $ 30,000                      
v3.23.2
Commitments and Contingencies (Details) - USD ($)
6 Months Ended
May 12, 2023
Nov. 15, 2021
Nov. 09, 2021
Jun. 30, 2023
Jun. 14, 2023
Commitments and Contingencies          
Options to underwriters period granted   45 days      
Underwriting cash discount per unit   $ 0.20      
Aggregate underwriter cash discount   $ 4,600,000      
Percentage of marketing fee     3.50%    
Marketing fee payable     $ 8,100,000    
Exercise price of warrants       $ 11.50  
Maximum number of times board of directors allowed for extending the date to consummation of business combination       3  
Number of shares transferred to non-redeeming stockholders       1,166,663  
Fair value of shares transferred to non-redeeming stockholders       $ 4,802,931  
Fair value per share transferred to non-redeeming stockholders       $ 4.12  
Restricted Stock Units (RSU) | Chief Financial Officer [Member]          
Commitments and Contingencies          
Number of shares approved for grant as compensation for service       30,000 30,000
Non-Redemption Agreements          
Commitments and Contingencies          
Number of shares third parties agreed not to redeem shares 4,000,000     4,000,000  
Number of ordinary shares agreed to transfer for non-redemption of shares 1,000,000     1,000,000  
Additional maximum number of ordinary shares for non-redemption of shares 500,000     500,000  
IPO          
Commitments and Contingencies          
Sale of Units, net of underwriting discounts (in shares)   23,000,000      
Gross proceeds from initial public offering   $ 230,000,000.0      
Obligation to redeem Public Shares if entity does not complete a Business Combination (as a percent)       100.00%  
Over-allotment option          
Commitments and Contingencies          
Number of shares issued   3,000,000      
Sale of Units, net of underwriting discounts (in shares)   3,000,000      
Forward Purchase Agreements          
Commitments and Contingencies          
Aggregate underwriter cash discount       $ 40,000,000.0  
Sale of Units, net of underwriting discounts (in shares)       6,000,000  
Number of shares in a unit       1  
Number of warrants in a unit       0.5  
Exercise price of warrants       $ 10.00  
Forward Purchase Agreements | Class A Ordinary Shares          
Commitments and Contingencies          
Number of shares issued       4,000,000  
Forward Purchase Agreements | Redeemable Warrants Exercisable For Class Common Stock          
Commitments and Contingencies          
Number of shares issued       2,000,000  
v3.23.2
Commitments and Contingencies - Fair value of founder shares (Details)
May 10, 2023
Stock price  
Other Commitments  
Measurement input 10.42
Risk-free rate  
Other Commitments  
Measurement input 4.25
Remaining life  
Other Commitments  
Measurement input 1.56
Volatility  
Other Commitments  
Measurement input 5.4
Probability of transaction  
Other Commitments  
Measurement input 40
v3.23.2
Shareholders' Deficit - Preferred Stock Shares (Details) - $ / shares
Jun. 30, 2023
Dec. 31, 2022
Shareholders' Deficit    
Preferred shares, shares authorized 1,000,000 1,000,000
Preferred stock, par value, (per share) $ 0.0001 $ 0.0001
Preferred shares, shares issued 0 0
Preferred shares, shares outstanding 0 0
v3.23.2
Shareholders' Deficit - Common Stock Shares (Details)
6 Months Ended
Jun. 30, 2023
Vote
$ / shares
shares
Dec. 31, 2022
Vote
$ / shares
shares
Nov. 15, 2021
shares
Shareholders' Deficit      
Common shares, votes per share | Vote 1    
Ratio to be applied to the stock in the conversion 1    
Class A Ordinary Shares      
Shareholders' Deficit      
Common shares, shares authorized 479,000,000 479,000,000  
Common shares, par value (in dollars per share) | $ / shares $ 0.0001 $ 0.0001  
Common shares, votes per share | Vote 1 1  
Shares subject to forfeiture 22,050,000    
Class A ordinary shares subject to possible redemption      
Shareholders' Deficit      
Class A ordinary shares subject to possible redemption, outstanding (in shares) 4,151,134 23,000,000  
Class B ordinary shares      
Shareholders' Deficit      
Common shares, shares authorized 20,000,000 20,000,000  
Common shares, par value (in dollars per share) | $ / shares $ 0.0001 $ 0.0001  
Common shares, shares issued 5,750,000 5,750,000  
Common shares, shares outstanding 5,750,000 5,750,000  
Shares subject to forfeiture 750,000 750,000  
Aggregated shares issued upon converted basis (as a percent) 20.00%    
Number of shares no longer subject to forfeiture     750,000
v3.23.2
Warrants (Details) - $ / shares
6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Warrants outstanding 22,050,000  
Warrants exercisable term from the completion of business combination 30 days  
Warrants exercisable term from the closing of the public offering 12 months  
Threshold period for filling registration statement after business combination 20 days  
Threshold period for filling registration statement within number of days of business combination 60 days  
Exercise price of warrants $ 11.50  
Public Warrants expiration term 5 years  
Share price $ 9.20  
Threshold trading days determining volume weighted average price 10 days  
Percentage of gross proceeds on total equity proceeds 60.00%  
Adjustment of exercise price of warrants based on market value (as a percent) 115.00%  
Stock price trigger for redemption of public warrants $ 18.00  
Percentage of adjustment of redemption price of stock based on market value. 180.00%  
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination 30 days  
Number of trading days redeemed immediately which subject to warrants holders 10 days  
Warrants exercisable for cash 0.361  
Redemption Of Warrant Price Per Share Equals Or Exceeds18.00    
Share price $ 18.00  
Stock price trigger for redemption of public warrants 18.00  
Redemption price per public warrant (in dollars per share) $ 0.01  
Minimum threshold written notice period for redemption of public warrants 30 days  
Threshold trading days for redemption of public warrants 20 days  
Redemption Of Warrant Price Per Share Equals Or Exceeds10.00    
Stock price trigger for redemption of public warrants $ 10.00  
Redemption price per public warrant (in dollars per share) $ 0.10  
Minimum threshold written notice period for redemption of public warrants 30 days  
Threshold trading days for redemption of public warrants 20 days  
Public Warrants    
Warrants outstanding 11,500,000 11,500,000
Private Warrants    
Warrants outstanding 10,550,000 10,550,000
Share price $ 18.00  
v3.23.2
Fair Value Measurements (Details) - USD ($)
Jun. 30, 2023
Dec. 31, 2022
Assets:    
Cash held in the Trust Account   $ 315
Investments held in Trust Account $ 44,193,476 237,796,114
Liabilities:    
Convertible note - related party 1,912,992 1,431,546
Level 1 | Public Warrants    
Liabilities:    
Derivative liabilities 575,000 1,150,000
Level 1 | U.S. Treasury Securities    
Assets:    
Investments held in Trust Account 44,193,476 237,795,799
Level 2 | Private Warrants    
Liabilities:    
Derivative liabilities 527,500 1,055,000
Level 3    
Liabilities:    
Convertible note - related party 1,912,992 1,431,546
Level 3 | Forward Purchase Agreements    
Liabilities:    
Derivative liabilities $ 202,211 $ 342,235
v3.23.2
Fair Value Measurements - Level 3 Fair Value Measurements Inputs (Details) - Level 3
Jun. 30, 2023
item
$ / shares
Y
Dec. 31, 2022
item
$ / shares
Y
Forward Purchase Agreements | Exercise price    
Fair Value Measurements    
Derivative liability, measurement input | $ / shares 10.00 10.00
Forward Purchase Agreements | Stock price    
Fair Value Measurements    
Derivative liability, measurement input | $ / shares 9.63 10.85
Forward Purchase Agreements | Term (years)    
Fair Value Measurements    
Derivative liability, measurement input | Y 0.38 0.29
Forward Purchase Agreements | Risk-free rate    
Fair Value Measurements    
Derivative liability, measurement input 0.0531 0.0437
Forward Purchase Agreements | Dividend yield    
Fair Value Measurements    
Derivative liability, measurement input 0.000 0.000
Convertible Note | Exercise price    
Fair Value Measurements    
Derivative liability, measurement input | $ / shares 1.00 1.00
Convertible Note | Stock price    
Fair Value Measurements    
Derivative liability, measurement input | $ / shares 0.05 0.10
Convertible Note | Term (years)    
Fair Value Measurements    
Derivative liability, measurement input | Y 0.38 0.29
Convertible Note | Volatility    
Fair Value Measurements    
Derivative liability, measurement input 0.382 0.423
Convertible Note | Risk-free rate    
Fair Value Measurements    
Derivative liability, measurement input 0.0531 0.0437
Convertible Note | Dividend yield    
Fair Value Measurements    
Derivative liability, measurement input 0.000 0.000
Warrants | Exercise price    
Fair Value Measurements    
Derivative liability, measurement input | $ / shares 11.50 11.50
Warrants | Stock price    
Fair Value Measurements    
Derivative liability, measurement input | $ / shares 10.51 10.28
Warrants | Term (years)    
Fair Value Measurements    
Derivative liability, measurement input | Y 5.38 5.29
Warrants | Volatility    
Fair Value Measurements    
Derivative liability, measurement input 0.060 0.060
Warrants | Risk-free rate    
Fair Value Measurements    
Derivative liability, measurement input 0.0402 0.0391
Warrants | Dividend yield    
Fair Value Measurements    
Derivative liability, measurement input 0.000 0.000
v3.23.2
Fair Value Measurements - Change in the Fair Value of the Warrant Liabilities (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Change in the fair value of the derivative liabilities            
Change in fair value of convertible note - related party $ 6,886   $ (45,956)   $ (63,154) $ (41,748)
Level 3            
Change in the fair value of the derivative liabilities            
Derivative liabilities at beginning of the year 334,632 $ 342,235 779,450 $ 5,694,560 342,235 5,694,560
Transfer of Warrants out of Level 3       (5,301,100)    
Change in fair value of derivative warrant liabilities (132,421) (7,603) (7,451) 385,990    
Derivative liabilities at ending of the year 202,211 334,632 771,999 779,450 202,211 771,999
Convertible note - related party at the beginning of period 1,752,506 1,431,546 1,057,764 1,053,556 1,431,546 1,053,556
Change in fair value of convertible note - related party 6,886 (70,040) (45,956) 4,208    
Additional issuance of convertible note - related party 153,600 391,000        
Convertible note - related party at the end of period (unaudited) $ 1,912,992 $ 1,752,506 $ 1,011,808 $ 1,057,764 $ 1,912,992 $ 1,011,808

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