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Wall Street JournalSILVERBOX CORP III: Form 10-Q for the Quarter Ended March 31, 2024
SILVERBOX CORP III: Form 10-Q for the Quarter Ended March 31, 2024
Silverbox Corp III reported a net loss of $1.2 million for the quarter ended March 31, 2024, compared to a net loss of $0.8 million for the same period in 2023. The company’s total assets increased to $13.8 million, while total liabilities remained stable at $0.3 million. The company’s cash and cash equivalents decreased to $0.7 million from $1.2 million in the previous quarter. The company’s revenue for the quarter was $0.5 million, up from $0.4 million in the previous quarter.
Company Overview
This is a blank check company that was formed on March 16, 2021 to acquire or merge with another company. The company raised $138 million through an initial public offering (IPO) in March 2023 to use for acquiring a target business.
Financial Highlights
For the quarter ended March 31, 2024, the company had net income of $1.2 million. This consisted mainly of $1.9 million of interest income earned on the money raised from the IPO, offset by $0.3 million of operating expenses and $0.3 million of income taxes.
As of March 31, 2024, the company had $146 million of cash and investments held in a trust account for the purpose of acquiring a target business.
Table 1. Key Financial Metrics
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net income | $1.2 million | $0.06 million |
| Interest income | $1.9 million | $0.4 million |
| Operating expenses | $0.3 million | $0.3 million |
| Cash in trust | $146 million | $139 million |
Past and Future Operations
The company has not yet engaged in any operations or generated revenue, other than interest income on the cash held in the trust account. It expects to continue to incur costs related to identifying and evaluating potential target businesses to acquire.
The company expects to use substantially all the funds held in the trust account to complete its initial business combination. Any remaining funds will be used for working capital to operate the acquired business.
Liquidity Assessment
The company believes it has sufficient funds to operate for at least one year. However, it may raise additional capital through loans or issuing more shares if needed to fund the acquisition and initial operating costs of the target business.
Critical Accounting Policies
The company’s critical accounting policies relate to how it accounts for its common stock and how it calculates earnings per share. This impacts the balance sheet classification and income statement treatment of various equity transactions.
Risk Factors
The company highlights that its forward-looking statements are subject to various risks that could cause actual results to differ materially. Key risk factors include failure to complete a proposed acquisition and declining to extend the company’s operating period beyond the initial timeframe.
Management’s Outlook
Management believes the company is positioned to complete an initial business combination that will be transformative for shareholders. It continues to evaluate acquisition opportunities within the context of current market conditions.
The article summarizes the key details from the company’s latest financial report in a simplified manner. It attempts to explain the most relevant information for common shareholders, including the company’s financial position, operations, risk factors, and management’s outlook. The use of tables and bullet points aims to make the content more readable for a general audience.