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Report of Independent Registered Public Accounting Firm (PCAOB ID#688)
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F-1
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Balance Sheets
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F-2
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Statements of Operations
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F-3
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Statements of Changes in Stockholders’ Deficit
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F-4
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Statements of Cash Flows
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F-5
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Notes to Financial Statements
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F-6
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December 31,
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2023
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2022
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ASSETS
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Current assets
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Cash
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$
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$
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Prepaid assets
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Total Current Assets
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Cash Held in Trust Account
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TOTAL ASSETS
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$
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$
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LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ DEFICIT
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Current liabilities
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Accrued expenses
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$
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$
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Convertible note payable Sponsor
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Convertible note payable
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Income taxes - payable
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Franchise tax payable
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Advances - related party
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Total Current Liabilities
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Deferred underwriter fee payable
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TOTAL LIABILITIES
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Commitments and Contingencies
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Class A common stock subject to possible redemption, $
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Stockholders’ Deficit
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Preferred stock, $
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Class A common stock, $
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Class B common stock, $
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Additional paid-in capital
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Accumulated deficit
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(
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)
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(
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)
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Total Stockholders’ Deficit
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(
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)
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(
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)
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TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ DEFICIT
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$
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$
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For the Year ended
December 31,
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2023 | 2022 | |||||||
Formation and operating costs
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$
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$ | |||||
Legal investigations costs
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Franchise tax expense
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Loss from operating costs
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(
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)
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( |
) | ||||
Other income and expenses:
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Insurance Recoveries
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$
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Interest earned on cash held in Trust Account
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Total other income
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Loss before income taxes
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(
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)
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( |
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Income tax expense
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Net loss
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$
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(
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)
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$ | ( |
) | ||
Weighted average shares outstanding of Class A common stock
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Basic and diluted net loss per Class A common stock
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$
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(
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)
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$ | ( |
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Weighted average shares outstanding of Class B common stock
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Basic and diluted net loss per Class B common stock
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$
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(
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)
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$ | ( |
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Class A
Common Stock
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Class B
Common Stock
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Additional
Paid-In
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Accumulated |
Total
Stockholders’
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Shares |
Amount |
Shares |
Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - December 31, 2022 | $ | $ | $ | $ | ( |
) | $ | ( |
) | |||||||||||||||||||
Net loss | ( |
) | ( |
) | ||||||||||||||||||||||||
Surrender of shares | ( |
) | ( |
) | ||||||||||||||||||||||||
Remeasurement of Class A common stock to redemption value
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( |
) | ( |
) | ||||||||||||||||||||||||
Balance - December 31, 2023 | $ | $ | $ | $ | ( |
) | $ | ( |
) |
Class A
Common Stock
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Class B
Common Stock
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Additional
Paid-In
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Accumulated |
Total
Stockholders’
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Shares |
Amount |
Shares |
Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - December 31, 2021 | $ | $ | $ | $ | ( |
) | $ | ( |
) | |||||||||||||||||||
Net loss | ( |
) | ( |
) | ||||||||||||||||||||||||
Remeasurement of Class A common stock to redemption value
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( |
) | ( |
) | ||||||||||||||||||||||||
Balance - December 31, 2022 | $ | $ | $ | $ | ( |
) | $ | ( |
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For the Year end
December 31,
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2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | ( |
) | $ | ( |
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Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Interest earned on cash and marketable securities held in Trust Account | ( |
) | ( |
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Changes in operating assets and liabilities: | ||||||||
Accrued expenses | ||||||||
Income taxes payable | ||||||||
Prepaid insurance | ||||||||
Franchise tax payable | ||||||||
Net cash used in operating activities | ( |
) | ( |
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Cash flows from investing activities: | ||||||||
Investment of cash in Trust Account
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( |
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Cash withdrawn from Trust Account for taxes | ||||||||
Cash withdrawn from Trust Account for redemptions | ||||||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from convertible Sponsor note | ||||||||
Proceeds from working capital loan | ||||||||
(Repayment of) Proceeds from advances – related party | ( |
) | ||||||
Redemption of shares | ( |
) | ( |
) | ||||
Net cash provided by financing activities | ||||||||
Net change in cash | ( |
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Cash at beginning of period | ||||||||
Cash at end of period | $ | $ | ||||||
Supplemental disclosures
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Income taxes paid | $ | $ | ||||||
Interest paid | $ | $ | ||||||
Non-cash investing and financing activities: | ||||||||
Class B common stock redemption
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$ |
$ |
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Remeasurement of Class A common stock | $ | $ | ||||||
Issuance of Convertible note for legal services | $ | $ |
● |
if the dollar volume-weighted average price (“VWAP”) of the Company’s common stock equals or exceeds $
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● |
if the VWAP of the Company’s common stock equals or exceeds $
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● |
if the VWAP of the Company’s common stock equals or exceeds $
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Year Ended
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Year Ended
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December 31, 2023
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December 31, 2022
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Redeemable
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Non Redeemable
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Redeemable
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Non Redeemable
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Basic and diluted net income (loss) per share of common stock Numerator:
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Allocation of net income (loss), as adjusted
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$
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(14,776,927
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)
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$
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(7,113,714
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)
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(11,799,077
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)
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$
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(3,843,471
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)
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Denominator: Basic and diluted weighted average shares outstanding
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30,018,099
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7,187,258
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30,026,614
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7,187,500
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Basic and diluted net income (loss) per share of common stock
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$
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(0.49
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)
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$
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(0.99
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)
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(0.39
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)
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$
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(0.53
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)
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● |
“Digital World Convertible Notes” means up to $
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● |
“Working Capital Units” means any units issuable pursuant to the Digital World Convertible Notes. Each unit consists of
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in whole and not in part;
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at a price of $
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at any time after the warrants become exercisable;
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upon not less than
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if, and only if, the reported last sale price of the Class A common stock equals or exceeds $
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if, and only if, there is a current registration statement in effect with respect to the shares of Class A common stock underlying such warrants.
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December 31,
2023
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December 31,
2022
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Deferred tax assets: | ||||||||
Net operating losses | $ | $ | ||||||
Legal settlement | ||||||||
Start-up costs | ||||||||
Total deferred tax assets | ||||||||
Valuation Allowance | ( |
) | ( |
) | ||||
Deferred tax asset, net of allowance | $ | $ |
For the Year Ended
December 31, 2023
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For the Year Ended
December 31, 2022
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Federal | ||||||||
Current | $ | ( |
) | $ | ( |
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Deferred | ||||||||
State and local Current | ( |
) | ( |
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Deferred | ||||||||
Change in valuation allowance | ||||||||
Income tax provision | $ | $ |
For the Year Ended
December 31, 2023
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For the Year Ended
December 31, 2022
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Federal income taxes at |
% | % | ||||||
State tax, net of Federal benefit | % | % | ||||||
Change in valuation allowance | ( |
)% | ( |
)% | ||||
Other | ( |
)% | % |
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Provision for income tax | ( |
)% | ( |
)% |
(a)
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accrue interest at an annual rate of
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(b)
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are convertible (i) at any time following the consummation of the Business Combination, but prior to the Maturity Date, redemption or otherwise the repayment in full of the Convertible Notes, at
each holder’s option, in whole or in part, and subject to the terms and conditions of the Convertible Notes, including any required shareholders’ approval upon the consummation of the Business Combination and (ii) into that number
of Digital World Class A common stock and warrants included in the units, each unit consisting of
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(c)
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may be redeemed by Digital World, in whole or in part, commencing on the date on which all Digital World Class A common stock issuable to the holders has been registered with the Securities and
Exchange Commission (the “SEC”), by providing a
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(d)
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are initially drawable for
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(e)
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are subject to specified events of default; and
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(f) |
have registration rights pursuant to the registration rights agreement entered into by the Company and the parties thereto as of September 2, 2021.
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