| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 5 | | | |
| | | | | 7 | | | |
| | | | | 11 | | | |
| | | | | 12 | | | |
| | | | | 37 | | | |
| | | | | 38 | | | |
| | | | | 39 | | | |
| | | | | 54 | | | |
| | | | | 68 | | | |
| | | | | 74 | | | |
| | | | | 84 | | | |
| | | | | 96 | | | |
| | | | | 100 | | | |
| | | | | 102 | | | |
| | | | | 110 | | | |
| | | | | 112 | | | |
| | | | | 114 | | | |
| | | | | 116 | | | |
| | | | | 133 | | | |
| | | | | 134 | | | |
| | | | | 136 | | | |
| | | | | 136 | | | |
| | | | | 136 | | | |
| | | | | F-1 | | |
| Sponsor(1)(2)(4) | | | | | 2,665,250 | | | | | | 16.7% | | |
|
Sponsor affiliates(2)(3)
|
| | | | 936,300 | | | | | | 5.9% | | |
|
Current Management, Board and Advisors
|
| | | | 301,750 | | | | | | 1.9% | | |
|
Public Stockholders whose shares are subject to redemption(6)
|
| | | | 114,966 | | | | | | 0.7% | | |
|
VSee
|
| | | | 5,246,354 | | | | | | 32.9% | | |
|
iDoc
|
| | | | 4,950,000 | | | | | | 31.1% | | |
|
AGP(5)
|
| | | | 437,000 | | | | | | 2.7% | | |
|
Bridge Investor(4)(5)(7)
|
| | | | 950,375 | | | | | | 6.0% | | |
|
Quantum Investor(3)(4)
|
| | | | 300,000 | | | | | | 1.9% | | |
|
Other Stockholders(8)
|
| | | | 27,000 | | | | | | 0.2% | | |
| Sponsor(1)(2)(4) | | | | | 2,700,250 | | | | | | 15.8% | | |
|
Sponsor affiliates(2)(3)
|
| | | | 1,080,100 | | | | | | 6.3% | | |
|
Current Management, Board and Advisors
|
| | | | 301,750 | | | | | | 1.8% | | |
|
Public Stockholders whose shares are subject to redemption(6)
|
| | | | 114,966 | | | | | | 0.7% | | |
|
VSee
|
| | | | 5,246,354 | | | | | | 30.7% | | |
|
iDoc
|
| | | | 4,950,000 | | | | | | 28.9% | | |
| AGP(5) | | | | | 874,000 | | | | | | 5.1% | | |
|
Bridge Investor(4)(5)(7)
|
| | | | 1,220,749 | | | | | | 7.1% | | |
|
Quantum Investor(3)(4)
|
| | | | 600,000 | | | | | | 3.5% | | |
|
Other Stockholders(8)
|
| | | | 27,000 | | | | | | 0.2% | | |
| Sponsor(1)(2)(4) | | | | | 2,805,250 | | | | | | 13.6% | | |
|
Sponsor affiliates(2)(3)
|
| | | | 1,511,500 | | | | | | 7.3% | | |
|
Current Management, Board and Advisors
|
| | | | 301,750 | | | | | | 1.5% | | |
|
Public Stockholders whose shares are subject to redemption(6)
|
| | | | 114,966 | | | | | | 0.6% | | |
|
VSee
|
| | | | 5,246,354 | | | | | | 25.4% | | |
|
iDoc
|
| | | | 4,950,000 | | | | | | 23.9% | | |
| AGP(5) | | | | | 2,185,000 | | | | | | 10.6% | | |
|
Bridge Investor(4)(5)(7)
|
| | | | 2,031,872 | | | | | | 9.8% | | |
|
Quantum Investor(3)(4)
|
| | | | 1,500,000 | | | | | | 7.3% | | |
|
Other Stockholders(8)
|
| | | | 27,000 | | | | | | 0.1% | | |
| | |
Closing Date
Shareholding |
| |||
Weighted average shares calculation, basic and diluted | | | | | | | |
DHAC public shares
|
| | | | 114,966 | | |
DHAC Sponsor affiliate
|
| | | | 936,300 | | |
DHAC Sponsor and director shares
|
| | | | 2,967,000 | | |
Bridge Investors
|
| | | | 630,000 | | |
A.G.P. Underwriter
|
| | | | 437,000 | | |
Other current stockholder
|
| | | | 27,000 | | |
VSee company shares issued in Business Combination
|
| | | | 5,246,354 | | |
iDoc company shares issued in Business Combination
|
| | | | 4,950,000 | | |
Weighted average shares outstanding
|
| | | | 15,308,620 | | |
| | |
(A)
VSEE (Historical) |
| |
(A)
IDOC (Historical) |
| |
(B)
DHAC (Historical) |
| |
Transaction
Accounting Adjustments (Actual Redemptions) |
| | | | |
Pro Forma
Combined (Actual Redemptions) |
| |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 689,280 | | | | | | 74,184 | | | | | $ | 724 | | | | | | 1,400,355 | | | |
A
|
| | | $ | 1,488,488 | | |
| | | | | | | | | | | | | | | | | | | | | | | (2,590,305) | | | |
C
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 2,700,000 | | | |
D
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (170,000) | | | |
G
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (365,750) | | | |
I
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (250,000) | | | |
M
|
| | | | | | |
Accounts receivable
|
| | | | 627,395 | | | | | | 2,964,616 | | | | | | — | | | | | | — | | | | | | | | | 3,592,011 | | |
Due from related party
|
| | | | — | | | | | | 1,047,771 | | | | | | — | | | | | | (210,508) | | | |
L
|
| | | | 837,263 | | |
Prepaids and other current assets
|
| | | | 102,325 | | | | | | 140,665 | | | | | | — | | | | | | 210,000 | | | |
C
|
| | | | 452,990 | | |
Total Current Assets
|
| | | | 1,419,000 | | | | | | 4,227,236 | | | | | | 724 | | | | | | 723,792 | | | | | | | | | 6,370,752 | | |
Customer list
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5,302,497 | | | |
F
|
| | | | 5,302,497 | | |
Trade name
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,376,002 | | | |
F
|
| | | | 1,376,002 | | |
Right-of-use asset
|
| | | | — | | | | | | 1,316,153 | | | | | | — | | | | | | — | | | | | | | | | 1,316,153 | | |
Fixed assets
|
| | | | 11,779 | | | | | | 110,296 | | | | | | — | | | | | | — | | | | | | | | | 122,075 | | |
Note receivable
|
| | | | — | | | | | | 245,500 | | | | | | — | | | | | | — | | | | | | | | | 245,500 | | |
Goodwill
|
| | | | — | | | | | | — | | | | | | — | | | | | | 44,877,668 | | | |
F
|
| | | | 44,877,668 | | |
Deferred tax assets
|
| | | | — | | | | | | 563,094 | | | | | | — | | | | | | — | | | | | | | | | 563,094 | | |
Deposit
|
| | | | — | | | | | | 20,720 | | | | | | — | | | | | | — | | | | | | | | | 20,720 | | |
Cash and marketable securities held in Trust Account
|
| | | | — | | | | | | — | | | | | | 1,386,490 | | | | | | (1,400,355) | | | |
A
|
| | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | 13,865 | | | |
A
|
| | | | | | |
Total Assets
|
| | | $ | 1,430,779 | | | | | $ | 6,482,999 | | | | | $ | 1,387,214 | | | | | | 50,893,469 | | | | | | | | $ | 60,194,461 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued
liabilities |
| | | $ | 1,819,512 | | | | | | 1,804,892 | | | | | $ | 3,642,780 | | | | | | (519,829) | | | |
C
|
| | | $ | 6,656,805 | | |
| | | | | | | | | | | | | | | | | | | | | | | (90,550) | | | |
G
|
| | | | | | |
Deferred revenue
|
| | | | — | | | | | | 20,000 | | | | | | — | | | | | | — | | | | | | | | | 20,000 | | |
Excise tax payable
|
| | | | — | | | | | | — | | | | | | 72,396 | | | | | | — | | | | | | | | | 72,396 | | |
Income tax payable
|
| | | | — | | | | | | — | | | | | | 187,225 | | | | | | — | | | | | | | | | 187,225 | | |
Right-of-use liability
|
| | | | — | | | | | | 698,480 | | | | | | — | | | | | | — | | | | | | | | | 698,480 | | |
Line of credit
|
| | | | — | | | | | | 456,097 | | | | | | — | | | | | | — | | | | | | | | | 456,097 | | |
Deferred revenue
|
| | | | 1,371,527 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 1,371,527 | | |
Factoring payable
|
| | | | — | | | | | | 491,974 | | | | | | — | | | | | | (250,000) | | | |
M
|
| | | | 241,974 | | |
Note payable
|
| | | | 550,000 | | | | | | 1,581,183 | | | | | | 926,500 | | | | | | (926,500) | | | |
G
|
| | | | 1,026,183 | | |
| | | | | | | | | | | | | | | | | | | | | | | (1,105,000) | | | |
H
|
| | | | | | |
Due on share purchase
|
| | | | 135,000 | | | | | | — | | | | | | — | | | | | | (135,000) | | | |
E
|
| | | | — | | |
Bridge Note
|
| | | | 600,000 | | | | | | 600,000 | | | | | | — | | | | | | (1,200,000) | | | |
K
|
| | | | — | | |
Accrued interest on Exchange
Note |
| | | | — | | | | | | — | | | | | | 78,061 | | | | | | — | | | | | | | | | 78,061 | | |
Additional Bridge Note
|
| | | | — | | | | | | — | | | | | | 156,564 | | | | | | — | | | | | | | | | 156,566 | | |
Exchange Note
|
| | | | — | | | | | | — | | | | | | 2,814,359 | | | | | | — | | | | | | | | | 2,814,359 | | |
Extension note, net of discount
|
| | | | — | | | | | | — | | | | | | 285,614 | | | | | | (285,614) | | | |
I
|
| | | | — | | |
| | |
(A)
VSEE (Historical) |
| |
(A)
IDOC (Historical) |
| |
(B)
DHAC (Historical) |
| |
Transaction
Accounting Adjustments (Assuming No Additional Redemptions) |
| | | | |
Pro Forma
Combined (Assuming No Redemptions) |
| |||||||||||||||
Extension Note – Bifurcated
Derivative |
| | | | — | | | | | | — | | | | | | 22,868 | | | | | | (22,868) | | | |
I
|
| | | | — | | |
ELOC – Commitment Fee convertible note payable
|
| | | | — | | | | | | — | | | | | | 189,764 | | | | | | 500,000 | | | |
J
|
| | | | 689,764 | | |
Quantum Convertible Note, net of discount
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,000,000 | | | |
D
|
| | | | 3,000,000 | | |
Advances from related parties
|
| | | | 338,506 | | | | | | 500,000 | | | | | | 592,800 | | | | | | (241,101) | | | |
G
|
| | | | 979,940 | | |
| | | | | | | | | | | | | | | | | | | | | | | (210,508) | | | |
L
|
| | | | | | |
Total current liabilities
|
| | | | 4,814,257 | | | | | | 6,152,626 | | | | | | 8,968,931 | | | | | | (1,486,970) | | | | | | | | | 18,448,844 | | |
Deferred underwriting fee
payable |
| | | | — | | | | | | — | | | | | | 4,370,000 | | | | | | (4,370,000) | | | |
C
|
| | | | — | | |
Note payable
|
| | | | — | | | | | | 1,500,600 | | | | | | — | | | | | | — | | | | | | | | | 1,500,600 | | |
Right-of-use liability, less current portion
|
| | | | — | | | | | | 885,940 | | | | | | — | | | | | | — | | | | | | | | | 885,940 | | |
Total Liabilities
|
| | | | 4,814,257 | | | | | | 8,539,166 | | | | | | 13,338,931 | | | | | | (5,856,970) | | | | | | | | | 20,835,384 | | |
Common stock subject to possible redemption
|
| | | | — | | | | | | — | | | | | | 1,281,957 | | | | | | (1,295,822) | | | |
B
|
| | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | 13,865 | | | |
A
|
| | | | | | |
| | | | | — | | | | | | — | | | | | | 1,281,957 | | | | | | (1,281,957) | | | | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Serries A Preferred
|
| | | | 37 | | | | | | — | | | | | | — | | | | | | (37) | | | |
E
|
| | | | — | | |
Series A-1 Preferred
|
| | | | 123 | | | | | | — | | | | | | — | | | | | | (123) | | | |
E
|
| | | | — | | |
Common stock
|
| | | | 1,000 | | | | | | 4,978 | | | | | | 350 | | | | | | (1,000) | | | |
E
|
| | | | 1,470 | | |
| | | | | | | | | | | | | | | | | | | | | | | 11 | | | |
B
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (4,483) | | | |
F
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 525 | | | |
E
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 60 | | | |
K
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 29 | | | |
H
|
| | | | | | |
Additional paid-in capital
|
| | | | 6,026,457 | | | | | | 209,521 | | | | | | 550,246 | | | | | | (13,865) | | | |
A
|
| | | | 51,359,131 | | |
| | | | | | | | | | | | | | | | | | | | | | | 1,295,811 | | | |
B
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (13,941,934) | | | |
E
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 1,268,000 | | | |
G
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 49,289,984 | | | |
F
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 4,370,000 | | | |
C
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 1,104,971 | | | |
H
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 1,199,940 | | | |
K
|
| | | | | | |
Accumulated deficit
|
| | | | (9,117,796) | | | | | | (2,270,666) | | | | | | (13,784,270) | | | | | | 13,865 | | | |
A
|
| | | | (12,001,524) | | |
| | | | | | | | | | | | | | | | | | | | | | | (1,860,476) | | | |
C
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (300,000) | | | |
D
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 2,270,666 | | | |
F
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 13,784,270 | | | |
E
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (57,268) | | | |
I
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (500,000) | | | |
J
|
| | | | | | |
Non-controlling interest
|
| | | | (293,299) | | | | | | — | | | | | | — | | | | | | 293,299 | | | |
E
|
| | | | — | | |
Total Stockholders’ Equity
|
| | | | (3,383,478) | | | | | | (2,056,167) | | | | | | (13,233,674) | | | | | | 58,032,396 | | | | | | | | | 39,359,077 | | |
Total Liabilities and Stockholders’
Equity |
| | | $ | 1,430,779 | | | | | $ | 6,482,999 | | | | | $ | 1,387,214 | | | | | | 50,893,469 | | | | | | | | $ | 60,194,461 | | |
| | |
VSEE
(Historical) |
| |
IDOC
(Historical) |
| |
DHAC
(Historical) |
| |
Transaction
Accounting Adjustments (Actual Redemptions) |
| | | | |
Pro Forma
Combined (Actual Redemptions) |
| |||||||||||||||
VSee revenue
|
| | | $ | 1,495,995 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 1,495,995 | | |
Patient fees
|
| | | | — | | | | | | 1,121,355 | | | | | | — | | | | | | — | | | | | | | | | 1,121,355 | | |
Telehealth fee
|
| | | | — | | | | | | 512,710 | | | | | | — | | | | | | — | | | | | | | | | 512,710 | | |
Institution fees
|
| | | | — | | | | | | 5,700 | | | | | | — | | | | | | — | | | | | | | | | 5,700 | | |
Total revenue
|
| | | | 1,495,995 | | | | | | 1,639,765 | | | | | | — | | | | | | — | | | | | | | | | 3,135,760 | | |
Cost of revenue
|
| | | | 386,253 | | | | | | 400,563 | | | | | | — | | | | | | — | | | | | | | | | 786,816 | | |
Gross profit / (loss)
|
| | | | 1,109,742 | | | | | | 1,239,202 | | | | | | — | | | | | | — | | | | | | | | | 2,348,944 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and related benefits
|
| | | | 893,577 | | | | | | 402,333 | | | | | | — | | | | | | — | | | | | | | | | 1,295,910 | | |
General and administrative
|
| | | | 151,348 | | | | | | 288,684 | | | | | | 674,262 | | | | | | — | | | | | | | | | 1,114,294 | | |
Profossional fees
|
| | | | — | | | | | | 110,182 | | | | | | — | | | | | | — | | | | | | | | | 110,182 | | |
Amortization of client list
|
| | | | — | | | | | | — | | | | | | — | | | | | | 132,562 | | | |
C
|
| | | | 132,562 | | |
Operating expenses
|
| | | | 26,338 | | | | | | 92,000 | | | | | | — | | | | | | — | | | | | | | | | 118,338 | | |
Total costs and expenses
|
| | | | 1,071,263 | | | | | | 893,199 | | | | | | 674,262 | | | | | | 132,562 | | | | | | | | | 2,771,286 | | |
Operating loss
|
| | | | 38,479 | | | | | | 346,003 | | | | | | (674,262) | | | | | | (132,562) | | | | | | | | | (422,342) | | |
Interest expense
|
| | | | (9,310) | | | | | | (78,714) | | | | | | (113,989) | | | | | | (717,268) | | | |
D
|
| | | | (919,281) | | |
Default interest
|
| | | | — | | | | | | — | | | | | | (20,296) | | | | | | — | | | | | | | | | (20,296) | | |
Initial fair value of Additional Bridge Note
|
| | | | — | | | | | | — | | | | | | 3,851 | | | | | | — | | | | | | | | | 3,851 | | |
Change in fair value of Additional Bridge Note
|
| | | | — | | | | | | — | | | | | | (2,133) | | | | | | — | | | | | | | | | (2,133) | | |
Change in fair value of Exchange Note
|
| | | | — | | | | | | — | | | | | | (192,801) | | | | | | — | | | | | | | | | (192,801) | | |
Change in fair value of ELOC
|
| | | | — | | | | | | — | | | | | | 13,956 | | | | | | — | | | | | | | | | 13,956 | | |
Change in fair value of Extension Note
embedded derivative |
| | | | — | | | | | | — | | | | | | 4 | | | | | | — | | | | | | | | | 4 | | |
Other income (expense)
|
| | | | — | | | | | | (18,200) | | | | | | — | | | | | | — | | | | | | | | | (18,200) | | |
Interest earned on investments held in Trust Account
|
| | | | — | | | | | | — | | | | | | 17,853 | | | | | | (17,853) | | | |
A
|
| | | | — | | |
Income (loss) before taxes
|
| | | | 29,169 | | | | | | 249,089 | | | | | | (967,817) | | | | | | (867,683) | | | | | | | | | (1,557,242) | | |
Provision for taxes
|
| | | | — | | | | | | (55,603) | | | | | | — | | | | | | 55,603 | | | |
F
|
| | | | — | | |
Net loss
|
| | | $ | 29,169 | | | | | $ | 193,486 | | | | | $ | (967,817) | | | | | $ | (812,080) | | | | | | | | $ | (1,557,242) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 9,998,446 | | | | | | 4,978 | | | | | | 4,096,353 | | | | | | 10,264,555 | | | | | | | | | 14,360,908 | | |
Basic and diluted net loss per share
|
| | | $ | (0.00) | | | | | $ | 38.87 | | | | | $ | (0.27) | | | | | | | | | | | | | | $ | (0.10) | | |
| | |
VSEE
(Historical) |
| |
IDOC
(Historical) |
| |
DHAC
(Historical) |
| |
Transaction
Accounting Adjustments (Assuming No Redemptions) |
| | | | |
Pro Forma
Combined (Assuming No Additional Redemptions) |
| |||||||||||||||
VSee revenue
|
| | | $ | 5,840,889 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 5,840,889 | | |
Patient fees
|
| | | | — | | | | | | 3,475,666 | | | | | | — | | | | | | — | | | | | | | | | 3,475,666 | | |
Telehealth fee
|
| | | | — | | | | | | 2,434,210 | | | | | | — | | | | | | — | | | | | | | | | 2,434,210 | | |
Institution fees
|
| | | | — | | | | | | 716,314 | | | | | | — | | | | | | — | | | | | | | | | 716,314 | | |
Total revenue
|
| | | | 5,840,889 | | | | | | 6,626,190 | | | | | | — | | | | | | — | | | | | | | | | 12,467,079 | | |
Cost of revenue
|
| | | | 1,933,195 | | | | | | 2,451,633 | | | | | | — | | | | | | — | | | | | | | | | 4,384,828 | | |
Gross profit / (loss)
|
| | | | 3,907,694 | | | | | | 4,174,557 | | | | | | — | | | | | | — | | | | | | | | | 8,082,251 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and related benefits
|
| | | | 4,417,028 | | | | | | 2,044,822 | | | | | | — | | | | | | 804,774 | | | |
E
|
| | | | 7,266,624 | | |
General and administrative
|
| | | | 962,616 | | | | | | 6,052,031 | | | | | | 2,593,765 | | | | | | — | | | | | | | | | 9,608,412 | | |
Profossional fees
|
| | | | — | | | | | | 87,886 | | | | | | — | | | | | | — | | | | | | | | | 87,886 | | |
Amortization of client list
|
| | | | — | | | | | | — | | | | | | — | | | | | | 530,250 | | | |
C
|
| | | | 530,250 | | |
Operating expenses
|
| | | | 86,799 | | | | | | 358,471 | | | | | | — | | | | | | 1,860,476 | | | |
B
|
| | | | 907,737 | | |
Total costs and expenses
|
| | | | 5,466,443 | | | | | | 8,543,210 | | | | | | 2,593,765 | | | | | | 3,195,500 | | | | | | | | | 19,798,918 | | |
Operating loss
|
| | | | (1,558,749) | | | | | | (4,368,653) | | | | | | (2,593,765) | | | | | | (3,195,500) | | | | | | | | | (11,716,667) | | |
Interest expense
|
| | | | (191,323) | | | | | | (317,048) | | | | | | (598,355) | | | | | | (717,268) | | | |
D
|
| | | | (1,823,994) | | |
Default interest
|
| | | | — | | | | | | — | | | | | | (1,579,927) | | | | | | — | | | | | | | | | (1,579,927) | | |
Gain on forgiveness of debt
|
| | | | 107,862 | | | | | | 107,862 | | | | | | — | | | | | | — | | | | | | | | | 215,724 | | |
Initial fair value of Additional Bridge
Note |
| | | | — | | | | | | — | | | | | | 11,111 | | | | | | — | | | | | | | | | 11,111 | | |
Initial fair value of ELOC
|
| | | | — | | | | | | — | | | | | | (204,039) | | | | | | — | | | | | | | | | (204,039) | | |
Change in fair value of Additional Bridge Note
|
| | | | — | | | | | | — | | | | | | (2,726) | | | | | | — | | | | | | | | | (2,726) | | |
Change in fair value of Exchange Note
|
| | | | — | | | | | | — | | | | | | (97,814) | | | | | | — | | | | | | | | | (97,814) | | |
Change in fair value of ELOC
|
| | | | — | | | | | | — | | | | | | 319 | | | | | | — | | | | | | | | | 319 | | |
Change in fair value of Bridge Note embedded derivative
|
| | | | 90,200 | | | | | | 90,200 | | | | | | 120,267 | | | | | | — | | | | | | | | | 300,667 | | |
Change in fair value of Extension Note embedded derivative
|
| | | | — | | | | | | — | | | | | | 1,630 | | | | | | — | | | | | | | | | 1,630 | | |
Change in fair value of PIPE Forward
Contract derivative |
| | | | — | | | | | | — | | | | | | 170,666 | | | | | | — | | | | | | | | | 170,666 | | |
Other income (expense)
|
| | | | (20,114) | | | | | | (338,813) | | | | | | — | | | | | | — | | | | | | | | | (358,927) | | |
Impairment charges
|
| | | | — | | | | | | (104,076) | | | | | | — | | | | | | | | | | | | | | | (104,076) | | |
Interest earned on investments held in
Trust Account |
| | | | — | | | | | | — | | | | | | 358,767 | | | | | | (358,767) | | | |
A
|
| | | | — | | |
Loss before taxes
|
| | | | (1,572,124) | | | | | | (4,930,528) | | | | | | (4,413,866) | | | | | | (4,271,535) | | | | | | | | | (15,188,053) | | |
Provision for taxes
|
| | | | (1,838,490) | | | | | | 1,070,410 | | | | | | — | | | | | | 768,080 | | | |
F
|
| | | | — | | |
Net loss
|
| | | $ | (3,410,614) | | | | | $ | (3,860,118) | | | | | $ | (4,413,866) | | | | | $ | (3,503,455) | | | | | | | | $ | (15,188,053) | | |
Weighted average shares outstanding,
basic and diluted |
| | | | 9,998,446 | | | | | | 4,978 | | | | | | 4,096,353 | | | | | | 10,264,555 | | | | | | | | | 14,360,908 | | |
Basic and diluted net loss per share
|
| | | $ | (0.34) | | | | | $ | (775.44) | | | | | $ | (1.08) | | | | | | | | | | | | | | $ | (0.99) | | |
|
Customer list
|
| | | $ | 5.30 | | |
|
Trade name
|
| | | | 1.38 | | |
|
Net liabilities
|
| | | | (2.06) | | |
|
Total identified assets and liabilities
|
| | | | 4.62 | | |
|
Purchase consideration
|
| | | | (49.50) | | |
|
Goodwill
|
| | | $ | 44.88 | | |
|
Risk-free interest rate
|
| | | | 5.10% | | |
|
Expected terms (years)
|
| | | | 1.0 | | |
|
Expected volatility
|
| | | | 95.0% | | |
|
Exercise price
|
| | | $ | 12.11 | | |
|
Stock price
|
| | | $ | 12.11 | | |
| | |
Three months
Ended March 31, 2024(1) |
| |
Year Ended
December 31, 2023(1) |
| ||||||
Pro forma net loss
|
| | | $ | (1,557) | | | | | $ | (15,188) | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 15,308,620 | | | | | | 15,308,620 | | |
Net loss per share – basic and diluted
|
| | | $ | (0.10) | | | | | $ | (0.99) | | |
Excluded securities:(2) | | | | | | | | | | | | | |
Public Warrants
|
| | | | 11,500,000 | | | | | | 11,500,000 | | |
Private Warrants
|
| | | | 557,000 | | | | | | 557,000 | | |
Bridge Warrants
|
| | | | 173,913 | | | | | | 173,913 | | |
Extension Warrants
|
| | | | 26,086 | | | | | | 26,086 | | |
Quantum Convertible Note
|
| | | | 300,000 | | | | | | 300,000 | | |
Bridge Convertible Notes.
|
| | | | 320,375 | | | | | | 320,375 | | |
Tidewater assumed by DHAC Note
|
| | | | 292,500 | | | | | | 292,500 | | |
Bridge assumed by DHAC Notes
|
| | | | 600,000 | | | | | | 600,000 | | |
Stock options to be issued at effective time under stock option plan to be
adopted at effective time |
| | | | 803,646 | | | | | | 803,646 | | |
| | |
For the Three Months Ended March 31,
|
| |||||||||||||||||||||
| | |
2024
|
| |
2023
|
| |
Change
|
| |
%
|
| ||||||||||||
Revenue
|
| | | $ | 1,495,995 | | | | | $ | 1,596,268 | | | | | $ | (100,273) | | | | | | (6)% | | |
Cost of revenue
|
| | | | 386,253 | | | | | | 575,322 | | | | | | (189,069) | | | | | | (33)% | | |
Gross profit
|
| | | | 1,109,742 | | | | | | 1,020,946 | | | | | | 88,796 | | | | | | 9% | | |
Operating expenses
|
| | | | 1,071,263 | | | | | | 1,658,091 | | | | | | (586,828) | | | | | | (35)% | | |
Other (expenses)/income
|
| | | | (9,310) | | | | | | (1,717) | | | | | | (7,593) | | | | | | 442% | | |
Net income (loss) before taxes
|
| | | | 29,169 | | | | | | (638,862) | | | | | | 668,031 | | | | | | 105% | | |
Income tax (expense) benefit
|
| | | | — | | | | | | 182,843 | | | | | | (182,843) | | | | | | (100)% | | |
Net income (loss)
|
| | | $ | 29,169 | | | | | $ | (456,019) | | | | | $ | 485,188 | | | | | | 106% | | |
| | |
For the Three Months
Ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Net cash from operating activities
|
| | | $ | 579,286 | | | | | $ | (353,316) | | |
Net cash (used in) from investing activities
|
| | | $ | (8,740) | | | | | $ | (1,690) | | |
Net cash provided by financing activities
|
| | | $ | — | | | | | $ | 320,000 | | |
Change in cash
|
| | | $ | 570,546 | | | | | $ | (35,006) | | |
| | |
For the Three Months Ended March 31,
|
| |||||||||||||||||||||
| | |
2024
|
| |
2023
|
| |
Change
|
| |
%
|
| ||||||||||||
Revenues
|
| | | $ | 1,639,765 | | | | | $ | 1,948,691 | | | | | $ | (308,926) | | | | | | (16)% | | |
Cost of revenue
|
| | | | 400,563 | | | | | | 790,133 | | | | | | (389,570) | | | | | | (49)% | | |
Gross profit
|
| | | | 1,239,202 | | | | | | 1,158,558 | | | | | | 80,644 | | | | | | 7% | | |
Operating expenses
|
| | | | 893,199 | | | | | | 1,380,942 | | | | | | (487,743) | | | | | | (35)% | | |
Other (expenses)/income
|
| | | | (96,914) | | | | | | (99,253) | | | | | | 2,339 | | | | | | (2)% | | |
Net income (loss) before taxes
|
| | | | 249,089 | | | | | | (321,637) | | | | | | 570,726 | | | | | | 177% | | |
Income tax (expense) benefit
|
| | | | (55,603) | | | | | | 72,270 | | | | | | (127,873) | | | | | | 177% | | |
Net income (loss) before taxes
|
| | | $ | 193,486 | | | | | $ | (249,367) | | | | | $ | 442,853 | | | | | | 178% | | |
| | |
For the Three Months Ended March 31,
|
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Net cash (used in) operating activities
|
| | | $ | 185,120 | | | | | $ | (685,769) | | |
Net cash (used in) investing activities
|
| | | $ | — | | | | | $ | 90,500 | | |
Net cash provided by financing activities
|
| | | $ | (173,973) | | | | | $ | 483,239 | | |
Change in cash
|
| | | $ | 11,147 | | | | | $ | (112,030) | | |
Name
|
| |
Position
|
| |
Age
|
| |||
Milton Chen | | | Co-Chief Executive Officer and Director | | | | | 51 | | |
Imoigele Aisiku | | | Co-Chief Executive Officer, Chairman, Director | | | | | 52 | | |
Jerry Leonard | | | Chief Financial Officer and Secretary | | | | | 56 | | |
Kevin Lowdermilk | | | Director | | | | | 60 | | |
Colin O’Sullivan | | | Director | | | | | 49 | | |
Scott Metzger | | | Director | | | | | 56 | | |
Cydonii V. Fairfax | | | Director | | | | | 51 | | |
David L. Wickersham | | | Director | | | | | 54 | | |
Name and Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Option Awards
($)(1) |
| |
All Other
Compensation ($)(2) |
| |
Total
($) |
| ||||||||||||||||||
Imoigele P. Aisiku
|
| | | | 2023 | | | | | | 180,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 180,000 | | |
Co- Chief Executive Officer and Chairman
|
| | | | 2022 | | | | | | 305,667 | | | | | | — | | | | | | — | | | | | | — | | | | | | 305,667 | | |
Milton Chen
|
| | | | 2023 | | | | | | 41,666 | | | | | | — | | | | | | — | | | | | | — | | | | | | 41,666 | | |
Co- Chief Executive Officer and Director
|
| | | | 2022 | | | | | | 137,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | 137,500 | | |
Jerry Leonard
|
| | | | 2023 | | | | | | 143,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | 143,500 | | |
Senior Vice President of Business Development
|
| | | | 2022 | | | | | | 183,333.37 | | | | | | — | | | | | | — | | | | | | — | | | | | | 183,333.37 | | |
| | |
Option Awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#)(1) |
| |
Equity Incentive
Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |||||||||||||||
Imoigele P. Aisiku
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Milton Chen
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jerry Leonard
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Initial Stockholders
|
| |
Initial
Founder Shares |
| |
Forfeited
Shares |
| |
Current
Founder Shares |
| |||||||||
Digital Health Sponsor LLC(1)(2)(3)
|
| | | | 3,044,500 | | | | | | 971,250 | | | | | | 2,073,250 | | |
Scott Wolf
|
| | | | 230,000 | | | | | | 55,000 | | | | | | 175,000 | | |
Daniel Sullivan
|
| | | | 86,250 | | | | | | 11,250 | | | | | | 75,000 | | |
SCS Capital Partners, LLC(2)
|
| | | | 900,000 | | | | | | 400,000 | | | | | | 500,000 | | |
Brent Willis
|
| | | | 8,625 | | | | | | — | | | | | | 8,625 | | |
Frank Ciufo
|
| | | | 8,625 | | | | | | — | | | | | | 8,625 | | |
George McNellage
|
| | | | 8,625 | | | | | | — | | | | | | 8,625 | | |
Scott Metzger
|
| | | | 8,625 | | | | | | — | | | | | | 8,625 | | |
Andrew Singer
|
| | | | 5,750 | | | | | | — | | | | | | 5,750 | | |
Lane Ostrow
|
| | | | 5,750 | | | | | | — | | | | | | 5,750 | | |
Basil Harris
|
| | | | 5,750 | | | | | | — | | | | | | 5,750 | | |
Name and Address of Beneficial Owner
|
| |
Number of Shares
of Common Stock of the Company Beneficially Owned |
| |
% of Class(1)
|
| ||||||
Five Percent Holders of the Company | | | | | | | | | | | | | |
Digital Health Sponsor LLC (our sponsor)(2)
|
| | | | 3,222,250(3) | | | | | | 21.08% | | |
Dominion Capital LLC(4)
|
| | | | 803,913(5) | | | | | | 5.41% | | |
Directors and Executive Officers of the Company(6) | | | | | | | | | | | | | |
Milton Chen
|
| | | | 2,870,069 | | | | | | 19.53% | | |
Imoigele Aisiku
|
| | | | 3,536,990 | | | | | | 24.07% | | |
Jerry Leonard
|
| | | | — | | | | | | — | | |
Kevin Lowdermilk
|
| | | | — | | | | | | — | | |
Colin O’Sullivan
|
| | | | — | | | | | | — | | |
Scott Metzger
|
| | | | 8,625 | | | | | | * | | |
All Directors and Executive Officers of the Company as a group (6 individuals)
|
| | | | 6,415,684 | | | | | | 43.67% | | |
Name of Selling Stockholder(1)
|
| |
Number of Shares of
Common Stock Beneficially Owned Prior to Offering |
| |
Maximum Number of
Shares of Common Stock to be Offered Pursuant to this Prospectus |
| |
Number of Shares
of Common Stock Owned After Offering |
| |||||||||||||||||||||
|
Number(2)
|
| |
Percent(3)
|
| |
Number(5)
|
| |
Percent
|
| ||||||||||||||||||||
Dominion Capital LLC(1)
|
| | | | 803,913 | | | | | | 5.41% | | | | | | 2,310,545(4) | | | | | | 50,000 | | | | | | 0.34% | | |
| Where, | | | X | | | = | | | The number of shares of Common Stock to be issued to the holder; | |
| | | | Y | | | = | | | The number of shares of Common Stock for which the Bridge Warrant is being exercised; | |
| | | | A | | | = | | | The fair market value of one share of Common Stock; and | |
| | | | B | | | = | | | The Exercise Price. | |
| Where, | | | X | | | = | | | The number of shares of Common Stock to be issued to the holder; | |
| | | | Y | | | = | | | The number of shares of Common Stock for which the Bridge Warrant is being exercised; | |
| | | | A | | | = | | | The fair market value of one share of Common Stock; and | |
| | | | B | | | = | | | The Exercise Price. | |
| Audited Financial Statements of VSee Lab, Inc. | | | | | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-9 | | | |
| | | | | F-10 | | | |
| Unaudited Condensed Financial Statements of VSee Lab, Inc. | | | | | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | |
| Audited Financial Statements of iDoc Virtual Telehealth Solutions, LLC | | | | | | | |
| | | | | F-43 | | | |
| | | | | F-44 | | | |
| | | | | F-45 | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | | |
| Unaudited Condensed Financial Statements of iDoc Virtual Telehealth Solutions, LLC | | | | | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | | |
| | | | | F-73 | | | |
| | | | | F-75 | | | |
| | | | | F-76 | | |
| Audited Financial Statements of Digital Health Acquisition Corp | | | | | | | |
| | | | | F-94 | | | |
| Financial Statements: | | | | | | | |
| | | | | F-95 | | | |
| | | | | F-96 | | | |
| | | | | F-97 | | | |
| | | | | F-98 | | | |
| | | | | F-99 | | | |
| Unaudited Financial Statements of Digital Health Acquisition Corp. | | | | | | | |
| | | | | F-139 | | | |
| | | | | F-140 | | | |
| | | | | F-141 | | | |
| | | | | F-142 | | | |
| | | | | F-143 | | |
| Consolidated Financial Statements | | | | |
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 118,734 | | | | | $ | 230,664 | | |
Accounts receivable, net
|
| | | | 628,480 | | | | | | 389,453 | | |
Prepaids and other current assets
|
| | | | 79,920 | | | | | | 139,661 | | |
Total current assets
|
| | | | 827,134 | | | | | | 759,778 | | |
Fixed assets, net
|
| | | | 3,657 | | | | | | — | | |
Deferred tax asset
|
| | | | — | | | | | | 1,852,826 | | |
Total assets
|
| | | $ | 830,791 | | | | | $ | 2,612,604 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 1,824,408 | | | | | $ | 721,089 | | |
Deferred revenue
|
| | | | 802,524 | | | | | | 956,561 | | |
Due to related party
|
| | | | 338,506 | | | | | | 146,322 | | |
Due on share purchase
|
| | | | 135,000 | | | | | | — | | |
Embedded derivative
|
| | | | — | | | | | | 273,534 | | |
Contingent liability
|
| | | | 600,000 | | | | | | — | | |
Loan payable, related party, net of discount
|
| | | | 323,000 | | | | | | 110,000 | | |
Note payable, net of discount
|
| | | | 220,000 | | | | | | 407,131 | | |
Total liabilities
|
| | | | 4,243,438 | | | | | | 2,614,637 | | |
Commitments and contingencies (Note 4) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value, 1,701,715 shares authorized; Series A:
371,715 shares authorized, issued and outstanding |
| | | | 37 | | | | | | 37 | | |
Series A-1: 1,330,000 shares authorized, and 1,228,492 issued and outstanding
|
| | | | 123 | | | | | | 123 | | |
Common stock, $0.0001 par value; 18,000,000 shares authorized 9,998,446 shares issued and outstanding
|
| | | | 1,000 | | | | | | 1,000 | | |
Additional paid in capital
|
| | | | 6,026,457 | | | | | | 6,026,457 | | |
Accumulated deficit
|
| | | | (9,114,985) | | | | | | (5,666,895) | | |
Non-controlling interest
|
| | | | (325,279) | | | | | | (362,755) | | |
Total stockholders’ deficit
|
| | | | (3,412,647) | | | | | | (2,033) | | |
Total liabilities and stockholders’ deficit
|
| | | $ | 830,791 | | | | | $ | 2,612,604 | | |
| | |
For the years ended December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Revenues
|
| | | $ | 5,840,889 | | | | | $ | 6,377,760 | | |
Cost of goods sold
|
| | | | 1,933,195 | | | | | | 1,542,657 | | |
Gross margin
|
| | | | 3,907,694 | | | | | | 4,835,103 | | |
Operating expenses | | | | | | | | | | | | | |
Compensation and related benefits
|
| | | | 4,417,028 | | | | | | 5,015,940 | | |
General and administrative
|
| | | | 962,616 | | | | | | 1,283,172 | | |
Transaction expenses
|
| | | | 86,799 | | | | | | 216,025 | | |
Total operating expenses
|
| | | | 5,466,443 | | | | | | 6,515,137 | | |
Net operating loss
|
| | | | (1,558,749) | | | | | | (1,680,034) | | |
Other income (expenses): | | | | | | | | | | | | | |
Interest expense
|
| | | | (191,323) | | | | | | (31,868) | | |
Other (expense) income
|
| | | | (20,114) | | | | | | 156,516 | | |
Change in fair value on embedded derivative
|
| | | | 90,200 | | | | | | (64,731) | | |
Gain on forgiveness of debt
|
| | | | 107,862 | | | | | | — | | |
Total other (expenses) income
|
| | | | (13,375) | | | | | | 59,917 | | |
Loss before income taxes
|
| | | | (1,572,124) | | | | | | (1,620,117) | | |
Income tax (expense) benefit
|
| | | | (1,838,490) | | | | | | 694,363 | | |
Net loss
|
| | | | (3,410,614) | | | | | | (925,754) | | |
Net income (loss) attributable to non-controlling interest
|
| | | $ | 37,476 | | | | | $ | (89,549) | | |
Net loss attributable to VSee Lab, Inc.
|
| | | $ | (3,448,090) | | | | | $ | (836,205) | | |
Basic and diluted loss per share
|
| | | $ | (0.34) | | | | | $ | (0.08) | | |
Weighted average number of shares outstanding, basic and diluted income
|
| | | | 9,998,446 | | | | | | 9,998,446 | | |
| | |
Series A
Preferred Stock |
| |
Series A-1
Preferred Stock |
| |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Non: controlling
Interest |
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021
|
| | | | 371,715 | | | | | $ | 37 | | | | | | 1,228,492 | | | | | $ | 123 | | | | | | 9,998,446 | | | | | $ | 1,000 | | | | | $ | 6,026,457 | | | | | $ | (4,830,690) | | | | | $ | (273,206) | | | | | $ | 923,721 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (836,205) | | | | | | — | | | | | | (836,205) | | |
Non-controlling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (89,549) | | | | | | (89,549) | | |
Balance, December 31, 2022
|
| | | | 371,715 | | | | | | 37 | | | | | | 1,228,492 | | | | | | 123 | | | | | | 9,998,446 | | | | | | 1,000 | | | | | | 6,026,457 | | | | | | (5,666,895) | | | | | | (362,755) | | | | | | (2,033) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,448,090) | | | | | | — | | | | | | (3,448,090) | | |
Non-controlling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,476 | | | | | | 37,476 | | |
Balance, December 31, 2023
|
| | | | 371,715 | | | | | $ | 37 | | | | | | 1,228,492 | | | | | $ | 123 | | | | | | 9,998,446 | | | | | $ | 1,000 | | | | | $ | 6,026,457 | | | | | $ | (9,114,985) | | | | | $ | (325,279) | | | | | $ | (3,412,647) | | |
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Net loss
|
| | | $ | (3,410,614) | | | | | $ | (925,754) | | |
Adjustments to reconcile net loss to net cash used by operating activities: | | | | | | | | | | | | | |
Amortization of discount on note payable
|
| | | | 93,733 | | | | | | 15,934 | | |
Change in fair value on embedded derivative
|
| | | | (90,200) | | | | | | 64,731 | | |
Gain on forgiveness of debt
|
| | | | (107,862) | | | | | | — | | |
Provision for bad debt
|
| | | | 32,457 | | | | | | 15,131 | | |
Depreciation expense
|
| | | | 678 | | | | | | — | | |
Changes in working capital requirements: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (271,484) | | | | | | (118,490) | | |
Prepaids and other current assets
|
| | | | 59,741 | | | | | | 5,559 | | |
Deferred tax asset
|
| | | | 1,852,826 | | | | | | (694,363) | | |
Accounts payable and accrued liabilities
|
| | | | 1,169,983 | | | | | | 518,639 | | |
Deferred revenue
|
| | | | (154,037) | | | | | | 146,515 | | |
Due to related party
|
| | | | 192,184 | | | | | | 146,322 | | |
Net cash from operating activities
|
| | | | (632,595) | | | | | | (825,776) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of fixed assets
|
| | | | (4,335) | | | | | | — | | |
Net cash from financing activities
|
| | | | (4,335) | | | | | | — | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from note payable
|
| | | | 200,000 | | | | | | 600,000 | | |
Proceeds from loan payable, related party
|
| | | | 190,000 | | | | | | 110,000 | | |
Proceeds from share purchase liability
|
| | | | 135,000 | | | | | | — | | |
Net cash from financing activities
|
| | | | 525,000 | | | | | | 710,000 | | |
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
| | | | (111,930) | | | | | | (115,776) | | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | | | 230,664 | | | | | | 346,440 | | |
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
| | | $ | 118,734 | | | | | $ | 230,664 | | |
Supplemental disclosure of cash flow information | | | | | | | | | | | | | |
Cash paid for interest expense
|
| | | $ | — | | | | | $ | — | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | 16,000 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Office equipment
|
| | | $ | 3,335 | | | | | $ | — | | |
Medical equipment
|
| | | | 1,000 | | | | | | — | | |
| | | | | 4,335 | | | | | | — | | |
Less accumulated depreciation
|
| | | | (678) | | | | | | — | | |
Fixed Assets, net
|
| | | $ | 3,657 | | | | | $ | — | | |
Consolidated income statement
|
| |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Current income Tax:
|
| | | $ | | | | | $ | | | ||
Current tax on profits
|
| | | | 14,334 | | | | | | — | | |
Tax regarding prior years
|
| | | | | | | | | | — | | |
Deferred tax: | | | | | | | | | | | | | |
Deferred taxation – current year
|
| | | | (1,994,609) | | | | | | 694,363 | | |
Deferred taxation – prior years
|
| | | | 141,785 | | | | | | — | | |
Income tax (expense) benefit reported in the income statement
|
| | | $ | (1,838,490) | | | | | $ | 694,363 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Accounting (loss) profit before tax from continuing operations
|
| | | $ | (1,572,124) | | | | | $ | (1,620,117) | | |
Accounting (loss) profit before income tax
|
| | | | (1,572,124) | | | | | | (1,620,117) | | |
Federal income tax benefit at federal statutory rate of 21%
|
| | | | 330,146 | | | | | | 340,198 | | |
State income tax benefit, net of federal benefit
|
| | | | 121,463 | | | | | | 93,644 | | |
Permanent differences, net
|
| | | | 17,377 | | | | | | 17,892 | | |
Other
|
| | | | 156,123 | | | | | | 242,629 | | |
Valuation allowance charges affecting the income tax provision
|
| | | | (2,463,599) | | | | | | | | |
Total | | | | $ | (1,838,490) | | | | | $ | 694,363 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Non-Current | | | | | | | | | | | | | |
Deferred revenue
|
| | | $ | 121,052 | | | | | $ | 9,402 | | |
Loan Loss Reserve
|
| | | | 9,083 | | | | | | — | | |
Fixed assets
|
| | | | 16 | | | | | | — | | |
NOL carryforward
|
| | | | 2,333,448 | | | | | | 1,843,424 | | |
Valuation allowance
|
| | | | (2,463,599) | | | | | | | | |
Net deferred tax assets
|
| | | | — | | | | | | 1,852,826 | | |
Reflected in the Balance Sheets: | | | | | | | | | | | | | |
position as follows: | | | | | | | | | | | | | |
Deferred tax assets
|
| | | | — | | | | | | 1,852,826 | | |
Deferred tax liabilities
|
| | | | — | | | | | | — | | |
Deferred tax assets net
|
| | | $ | — | | | | | $ | 1,852,826 | | |
| | |
2023
|
| |
2022
|
| ||||||
Opening balance as of January 1,
|
| | | $ | 1,852,826 | | | | | $ | 1,158,463 | | |
Tax (expense)/benefit during the period recognized in profit or loss
|
| | | | (1,852,826) | | | | | | 694,363 | | |
Closing balance as of December 31,
|
| | | $ | — | | | | | $ | 1,852,826 | | |
Notes Payable
|
| |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Note payable issued October 6, 2022 (Face Value: $666,667)
|
| | | $ | — | | | | | $ | 666,667 | | |
Note payable issued January 12, 2023 (Face Value: $220,000)
|
| | | | 220,000 | | | | | | — | | |
Total notes payable and line of credit
|
| | | | 220,000 | | | | | | 666,667 | | |
Less: unamortized debt discount, net
|
| | | | — | | | | | | (259,536) | | |
Total notes payable at carrying value
|
| | | $ | 220,000 | | | | | $ | 407,131 | | |
| | |
December 31, 2023
|
| |||||||||||||||||||||
| | |
Carrying
value |
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Bridge Note – Embedded Derivative
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
December 31, 2022
|
| |||||||||||||||||||||
| | |
Carrying
value |
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Bridge Note – Embedded Derivative
|
| | | $ | 273,534 | | | | | $ | — | | | | | $ | — | | | | | $ | 273,534 | | |
Total
|
| | | $ | 273,534 | | | | | $ | — | | | | | $ | — | | | | | $ | 273,534 | | |
| | |
November 21,
2023 |
| |
December 31,
2022 |
| |
October 5,
2022 |
| |||||||||
CCC bond rates
|
| | | | — | | | | | | 15.09% | | | | | | 14.09% | | |
Probability of early termination/repayment – BC not completed
|
| | | | — | | | | | | 5% | | | | | | 10% | | |
Probability of early termination/repayment – BC completed or PIPE completed
|
| | | | — | | | | | | 95% | | | | | | 90% | | |
Probability of completing a business combination by March 31, 2023
|
| | | | — | | | | | | 50% | | | | | | 50% | | |
Probability of completing a business combination by June 30, 2023
|
| | | | — | | | | | | 50% | | | | | | 50% | | |
Implied volatility
|
| | | | 0.1% | | | | | | 6% | | | | | | 12% | | |
Risk free rate
|
| | | | 5.38% | | | | | | 4.76% | | | | | | 4.01% | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Bridge Note Embedded Derivative, Beginning Fair Value
|
| | | $ | 273,534 | | | | | $ | — | | |
Fair value at October 5, 2022 (Initial measurement)
|
| | | | — | | | | | | 208,803 | | |
Change in fair value
|
| | | | (92,449) | | | | | | 64,731 | | |
Derivative adjustment from the Exchange Agreement (Note 9)
|
| | | | (181,085) | | | | | | — | | |
Bridge Note Embedded Derivative, Ending Fair Value
|
| | | $ | — | | | | | $ | 273,534 | | |
| Condensed Financial Statements | | | | | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 689,280 | | | | | $ | 118,734 | | |
Accounts receivable, net
|
| | | | 627,395 | | | | | | 628,480 | | |
Prepaids and other current assets
|
| | | | 102,325 | | | | | | 79,920 | | |
Total current assets
|
| | | | 1,419,000 | | | | | | 827,134 | | |
Fixed assets, net
|
| | | | 11,779 | | | | | | 3,657 | | |
Total assets
|
| | | $ | 1,430,779 | | | | | $ | 830,791 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 1,819,512 | | | | | $ | 1,824,408 | | |
Deferred revenue
|
| | | | 1,371,527 | | | | | | 802,524 | | |
Due to related party
|
| | | | 338,218 | | | | | | 338,506 | | |
Due on share purchase
|
| | | | 135,000 | | | | | | 135,000 | | |
Contingent liability
|
| | | | 600,000 | | | | | | 600,000 | | |
Loan payable, related party, net of discount
|
| | | | 330,000 | | | | | | 323,000 | | |
Note payable, net of discount
|
| | | | 220,000 | | | | | | 220,000 | | |
Total liabilities
|
| | | | 4,814,257 | | | | | | 4,243,438 | | |
Commitments and contingencies (Note 4) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value, 1,701,715 shares authorized; Series A: 371,715 shares authorized, issued and outstanding
|
| | | | 37 | | | | | | 37 | | |
Series A-1: 1,330,000 shares authorized, and 1,228,492 issued and outstanding
|
| | | | 123 | | | | | | 123 | | |
Common stock, $0.0001 par value; 18,000,000 shares authorized 9,998,446 shares issued and outstanding
|
| | | | 1,000 | | | | | | 1,000 | | |
Additional paid in capital
|
| | | | 6,026,457 | | | | | | 6,026,457 | | |
Accumulated deficit
|
| | | | (9,117,796) | | | | | | (9,114,985) | | |
Non-controlling interest
|
| | | | (293,299) | | | | | | (325,279) | | |
Total stockholders’ deficit
|
| | | | (3,383,478) | | | | | | (3,412,647) | | |
Total liabilities and stockholders’ deficit
|
| | | $ | 1,430,779 | | | | | $ | 830,791 | | |
| | |
For the Three Months Ended
March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Revenues | | | | | | | | | | | | | |
Subscription fees
|
| | | $ | 1,005,202 | | | | | $ | 1,161,191 | | |
Professional services and other fees
|
| | | | 327,843 | | | | | | 259,390 | | |
Technical engineering Fees
|
| | | | 162,950 | | | | | | 175,687 | | |
Total Revenue
|
| | | | 1,495,995 | | | | | | 1,596,268 | | |
Cost of goods sold
|
| | | | 386,253 | | | | | | 575,322 | | |
Gross margin
|
| | | | 1,109,742 | | | | | | 1,020,946 | | |
Operating expenses | | | | | | | | | | | | | |
Compensation and related benefits
|
| | | | 893,577 | | | | | | 1,335,552 | | |
General and administrative
|
| | | | 151,348 | | | | | | 281,253 | | |
Transaction expenses
|
| | | | 26,338 | | | | | | 41,286 | | |
Total operating expenses
|
| | | | 1,071,263 | | | | | | 1,658,091 | | |
Net operating profit (loss)
|
| | | | 38,479 | | | | | | (637,145) | | |
Other income (expenses): | | | | | | | | | | | | | |
Interest expense
|
| | | | (9,310) | | | | | | (47,402) | | |
Other income
|
| | | | — | | | | | | 19,616 | | |
Change in fair value on embedded derivative
|
| | | | — | | | | | | 26,069 | | |
Total other expenses
|
| | | | (9,310) | | | | | | (1,717) | | |
Income (loss) before income taxes
|
| | | | 29,169 | | | | | | (638,862) | | |
Income tax benefit
|
| | | | — | | | | | | 182,843 | | |
Net income (loss)
|
| | | | 29,169 | | | | | | (456,019) | | |
Net income (loss) attributable to non-controlling interest
|
| | | $ | 31,980 | | | | | $ | (4,767) | | |
Net loss attributable to stockholders
|
| | | $ | (2,811) | | | | | $ | (451,252) | | |
Basic and diluted loss per share
|
| | | $ | (0.00) | | | | | $ | (0.05) | | |
Weighted average number of shares outstanding, basic and diluted income
|
| | | | 9,998,446 | | | | | | 9,998,446 | | |
| | |
Series A
Preferred Stock |
| |
Series A-1
Preferred Stock |
| |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Non: controlling
Interest |
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023
|
| | | | 371,715 | | | | | $ | 37 | | | | | | 1,228,492 | | | | | $ | 123 | | | | | | 9,998,446 | | | | | $ | 1,000 | | | | | $ | 6,026,457 | | | | | $ | (9,114,985) | | | | | $ | (325,279) | | | | | $ | (3,412,647) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,811) | | | | | | — | | | | | | (2,811) | | |
Non-controlling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 31,980 | | | | | | 31,980 | | |
Balance, March 31, 2024
|
| | | | 371,715 | | | | | $ | 37 | | | | | | 1,228,492 | | | | | $ | 123 | | | | | | 9,998,446 | | | | | $ | 1,000 | | | | | $ | 6,026,457 | | | | | $ | (9,117,796) | | | | | $ | (293,299) | | | | | $ | (3,383,478) | | |
| | |
Series A
Preferred Stock |
| |
Series A-1
Preferred Stock |
| |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Non-controlling
Interest |
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022
|
| | | | 371,715 | | | | | $ | 37 | | | | | | 1,228,492 | | | | | $ | 123 | | | | | | 9,998,446 | | | | | $ | 1,000 | | | | | $ | 6,026,457 | | | | | $ | (5,666,895) | | | | | $ | (362,755) | | | | | $ | (2,033) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (451,252) | | | | | | — | | | | | | (451,252) | | |
Non-controlling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,767) | | | | | | (4,767) | | |
Balance, March 31, 2023
|
| | | | 371,715 | | | | | $ | 37 | | | | | | 1,228,492 | | | | | $ | 123 | | | | | | 9,998,446 | | | | | $ | 1,000 | | | | | $ | 6,026,457 | | | | | $ | (6,118,147) | | | | | $ | (367,522) | | | | | $ | (458,052) | | |
| | |
For the Three Months Ended
March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Net income (loss)
|
| | | $ | 29,169 | | | | | $ | (456,019) | | |
Adjustments to reconcile net income (loss) to net cash used by operating activities:
|
| | | | | | | | | | | | |
Amortization of discount on note payable
|
| | | | 7,000 | | | | | | 25,386 | | |
Change in fair value on embedded derivative
|
| | | | — | | | | | | (26,069) | | |
Provision for bad debt
|
| | | | 9,201 | | | | | | 18,308 | | |
Depreciation expense
|
| | | | 618 | | | | | | 47 | | |
Changes in working capital requirements: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (8,116) | | | | | | (92,933) | | |
Prepaids and other current assets
|
| | | | (22,405) | | | | | | 16,150 | | |
Deferred tax asset
|
| | | | — | | | | | | (182,841) | | |
Accounts payable and accrued liabilities
|
| | | | (4,896) | | | | | | 408,549 | | |
Deferred revenue
|
| | | | 569,003 | | | | | | (129,418) | | |
Due to related party
|
| | | | (288) | | | | | | 65,524 | | |
Net cash from operating activities
|
| | | | 579,286 | | | | | | (353,316) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of fixed assets
|
| | | | (8,740) | | | | | | (1,690) | | |
Net cash from financing activities
|
| | | | (8,740) | | | | | | (1,690) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from note payable
|
| | | | — | | | | | | 200,000 | | |
Proceeds from loan payable, related party
|
| | | | — | | | | | | 120,000 | | |
Net cash from financing activities
|
| | | | — | | | | | | 320,000 | | |
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
| | | | 570,546 | | | | | | (35,006) | | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | | | 118,734 | | | | | | 230,664 | | |
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
| | | $ | 689,280 | | | | | $ | 195,658 | | |
Supplemental disclosure of cash flow information | | | | | | | | | | | | | |
Cash paid for interest expense
|
| | | $ | — | | | | | $ | — | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | — | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Office equipment
|
| | | $ | 5,932 | | | | | $ | 3,335 | | |
Medical equipment
|
| | | | 7,143 | | | | | | 1,000 | | |
| | | | | 13,075 | | | | | | 4,335 | | |
Less accumulated depreciation
|
| | | | (1,296) | | | | | | (678) | | |
Fixed Assets, net
|
| | | $ | 11,779 | | | | | $ | 3,657 | | |
| | |
March 31,
2024 |
| |
March 31,
2023 |
| ||||||
Income (loss) before taxes
|
| | | $ | 29,169 | | | | | $ | (456,019) | | |
Expected United States income tax (expense) benefit at a statutory rate of 21%
|
| | | $ | (6,125.49) | | | | | $ | 137,171 | | |
Expected State income tax (expense) benefit at a statutory rate of 0% and 8.84% at March 31, 2024 and 2023, respectively
|
| | | | — | | | | | | 45,672 | | |
Valuation allowance
|
| | | | 6,125.49 | | | | | | — | | |
Total income tax benefit
|
| | | $ | — | | | | | $ | 182,843 | | |
Notes Payable
|
| |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Note payable issued January 12, 2023 (Face Value: $220,000)
|
| | | $ | 220,000 | | | | | $ | 220,000 | | |
Total note payable and line of credit
|
| | | $ | 220,000 | | | | | $ | 220,000 | | |
| Consolidated Financial Statements | | | | | | | |
| | | | | F-43 | | | |
| | | | | F-44 | | | |
| | | | | F-45 | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 63,037 | | | | | $ | 147,685 | | |
Accounts receivable, net
|
| | | | 2,266,302 | | | | | | 5,107,835 | | |
Due from related party
|
| | | | 1,008,101 | | | | | | 678,936 | | |
Prepaids and other current assets
|
| | | | 123,205 | | | | | | 100,000 | | |
Total current assets
|
| | | | 3,460,645 | | | | | | 6,034,456 | | |
Note receivable, related party
|
| | | | 245,500 | | | | | | 336,000 | | |
Right-of-use asset, net
|
| | | | 1,422,017 | | | | | | 1,542,249 | | |
Intangible assets, net
|
| | | | — | | | | | | 107,076 | | |
Deferred tax asset
|
| | | | 598,585 | | | | | | — | | |
Deposit
|
| | | | 20,720 | | | | | | — | | |
Fixed assets, net
|
| | | | 114,044 | | | | | | 38,706 | | |
Total assets
|
| | | $ | 5,861,511 | | | | | $ | 8,058,487 | | |
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 391,923 | | | | | $ | 111,630 | | |
Accrued liabilities
|
| | | | 841,514 | | | | | | 650,677 | | |
Deferred revenue
|
| | | | 20,000 | | | | | | — | | |
Income taxes payable
|
| | | | — | | | | | | 22,281 | | |
Right-of-use liability
|
| | | | 608,695 | | | | | | 350,962 | | |
Line of credit
|
| | | | 456,097 | | | | | | 495,000 | | |
Factoring payable
|
| | | | 660,578 | | | | | | — | | |
Notes payable, net of discount
|
| | | | 1,540,983 | | | | | | 829,505 | | |
Due on acquisition purchase
|
| | | | 300,000 | | | | | | 300,000 | | |
Contingent liability
|
| | | | 600,000 | | | | | | — | | |
Embedded derivative
|
| | | | — | | | | | | 273,534 | | |
Loan payable, related party
|
| | | | 200,000 | | | | | | — | | |
Total current liabilities
|
| | | | 5,619,790 | | | | | | 3,033,589 | | |
Notes payable, less current portion, net of discount
|
| | | | 1,500,600 | | | | | | 1,808,925 | | |
Right-of-use liability, less current portion
|
| | | | 990,774 | | | | | | 1,202,260 | | |
Deferred tax liability
|
| | | | — | | | | | | 403,248 | | |
Total liabilities
|
| | | | 8,111,164 | | | | | | 6,448,022 | | |
Commitments and contingencies (Note 11) | | | | | | | | | | | | | |
Stockholders’ (deficit) equity | | | | | | | | | | | | | |
Common stock, $1.00 par value; 5,000 shares authorized 4,978 issued and outstanding
|
| | | | 4,978 | | | | | | 4,978 | | |
Additional paid in capital
|
| | | | 209,521 | | | | | | 209,521 | | |
Accumulated (deficit) retained earnings
|
| | | | (2,464,152) | | | | | | 1,395,966 | | |
Total stockholders’ (deficit) equity
|
| | | | (2,249,653) | | | | | | 1,610,465 | | |
Total liabilities and stockholders’ (deficit) equity
|
| | | $ | 5,861,511 | | | | | $ | 8,058,487 | | |
| | |
For the Years Ended December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Revenues | | | | | | | | | | | | | |
Patient Fees
|
| | | $ | 3,475,666 | | | | | $ | 5,398,566 | | |
Telehealth Fees
|
| | | | 2,434,210 | | | | | | 2,053,497 | | |
Institutional Fees
|
| | | | 716,314 | | | | | | 1,057,174 | | |
Total Revenue
|
| | | | 6,626,190 | | | | | | 8,509,237 | | |
Cost of Goods Sold
|
| | | | 2,451,633 | | | | | | 3,229,891 | | |
Gross Margin
|
| | | | 4,174,557 | | | | | | 5,279,346 | | |
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | | 6,052,031 | | | | | | 1,824,460 | | |
Compensation and related benefits
|
| | | | 2,044,822 | | | | | | 2,688,844 | | |
Transaction expenses
|
| | | | 358,471 | | | | | | 587,852 | | |
Professional fees
|
| | | | 87,886 | | | | | | 105,996 | | |
Total operating expenses
|
| | | | 8,543,210 | | | | | | 5,207,152 | | |
Net operating (loss) profit
|
| | | | (4,368,653) | | | | | | 72,194 | | |
Other income (expenses): | | | | | | | | | | | | | |
Interest expense
|
| | | | (317,048) | | | | | | (152,626) | | |
Change in fair value on derivative
|
| | | | 90,200 | | | | | | (64,731) | | |
Gain on forgiveness of debt
|
| | | | 107,862 | | | | | | — | | |
Impairment charges
|
| | | | (104,076) | | | | | | — | | |
Other (expense) income
|
| | | | (338,813) | | | | | | 135,570 | | |
Total other expense
|
| | | | (561,875) | | | | | | (81,787) | | |
Loss before income tax
|
| | | | (4,930,528) | | | | | | (9,593) | | |
Income tax benefit (expense)
|
| | | | 1,070,410 | | | | | | (8,531) | | |
Net loss
|
| | | $ | (3,860,118) | | | | | $ | (18,124) | | |
Net loss income per share attributable to common shareholders: | | | | | | | | | | | | | |
Basic
|
| | | $ | (775.4) | | | | | $ | (3.6) | | |
Diluted
|
| | | $ | (775.4) | | | | | $ | (3.6) | | |
Weighted average number of shares outstanding, basic, and diluted
|
| | | | 4,978 | | | | | | 4,978 | | |
| | |
Common Stock
|
| |
Additional
Paid In Capital |
| |
(Accumulated Deficit)
Retained Earnings |
| |
Total
|
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance December 31, 2021
|
| | | | 4,000 | | | | | $ | 4,000 | | | | | $ | 499 | | | | | $ | 1,414,090 | | | | | $ | 1,418,589 | | |
Reallocation of existing shares
|
| | | | 957 | | | | | | 957 | | | | | | (957) | | | | | | — | | | | | | — | | |
Sale of common stock
|
| | | | 21 | | | | | | 21 | | | | | | 209,979 | | | | | | — | | | | | | 210,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (18,124) | | | | | | (18,124) | | |
Balance December 31, 2022
|
| | | | 4,978 | | | | | $ | 4,978 | | | | | $ | 209,521 | | | | | $ | 1,395,966 | | | | | $ | 1,610,465 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (3,860,118) | | | | | | (3,860,118) | | |
Balance December 31, 2023
|
| | | | 4,978 | | | | | $ | 4,978 | | | | | $ | 209,521 | | | | | $ | (2,464,152) | | | | | $ | (2,249,653) | | |
| | |
2023
|
| |
2022
|
| ||||||
Net loss
|
| | | $ | (3,860,118) | | | | | $ | (18,124) | | |
Adjustments to reconcile net loss to net cash used by operating activities: | | | | | | | | | | | | | |
Amortization of discount on note payable
|
| | | | 51,816 | | | | | | 19,712 | | |
Amortization of right of use asset
|
| | | | 212,415 | | | | | | 93,541 | | |
Impairment expense
|
| | | | 104,078 | | | | | | 3,000 | | |
Depreciation and amortization
|
| | | | 16,396 | | | | | | 3,776 | | |
Provision for doubtful accounts
|
| | | | 534,460 | | | | | | 784,519 | | |
Change in fair value on embedded derivative
|
| | | | (90,200) | | | | | | 64,731 | | |
Gain on forgiveness of debt
|
| | | | (107,862) | | | | | | — | | |
Loss on factoring payable
|
| | | | 339,611 | | | | | | — | | |
Changes in working capital requirements: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 2,307,073 | | | | | | (3,114,354) | | |
Due from related party
|
| | | | (329,165) | | | | | | (177,576) | | |
Prepaid and other current assets
|
| | | | (23,205) | | | | | | (72,854) | | |
Deferred tax asset
|
| | | | (598,585) | | | | | | — | | |
Accounts payable
|
| | | | 280,293 | | | | | | 29,180 | | |
Accrued liabilities
|
| | | | 329,310 | | | | | | 258,279 | | |
Deferred revenue
|
| | | | 20,000 | | | | | | — | | |
Income taxes payable
|
| | | | (22,281) | | | | | | (394,719) | | |
Deferred tax liability
|
| | | | (403,248) | | | | | | 403,248 | | |
Net cash from operating activities
|
| | | | (1,239,212) | | | | | | (2,117,641) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Acquisition of business, net cash received
|
| | | | — | | | | | | 39,313 | | |
Proceeds on note receivable, related party
|
| | | | 90,500 | | | | | | 120,000 | | |
Issuance of note receivable, related party
|
| | | | — | | | | | | (336,000) | | |
Deposits
|
| | | | (20,720) | | | | | | — | | |
Purchase of fixed assets
|
| | | | (88,734) | | | | | | (42,483) | | |
Net cash from investing activities
|
| | | | (18,954) | | | | | | (219,170) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from revolving line of credit
|
| | | | — | | | | | | 70,000 | | |
Proceeds from factoring payable
|
| | | | 608,916 | | | | | | — | | |
Proceeds from notes payable
|
| | | | 894,000 | | | | | | 2,400,600 | | |
Proceeds from loan payable, related party
|
| | | | 200,000 | | | | | | — | | |
Payments on notes payable
|
| | | | (128,842) | | | | | | (227,122) | | |
Repayment on factoring payable
|
| | | | (324,547) | | | | | | — | | |
Repayment on leased equipment
|
| | | | (76,009) | | | | | | (82,568) | | |
Sale of common stock
|
| | | | — | | | | | | 210,000 | | |
Net cash from financing activities
|
| | | | 1,173,518 | | | | | | 2,370,910 | | |
CHANGE IN CASH AND CASH EQUIVALENTS
|
| | | | (84,648) | | | | | | 34,099 | | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | | | 147,685 | | | | | | 113,586 | | |
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
| | | $ | 63,037 | | | | | $ | 147,685 | | |
Supplemental disclosure of cash flow information | | | | | | | | | | | | | |
Cash paid for interest expense
|
| | | $ | 86,529 | | | | | $ | 56,365 | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | — | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Right of use asset and liability
|
| | | $ | 555,562 | | | | | $ | 1,824,981 | | |
Stock issued for acquisition
|
| | | $ | — | | | | | $ | 300,000 | | |
| Consideration | | | | | | | |
|
Cash payment due
|
| | |
$
|
300,000
|
| |
|
Total consideration
|
| | | $ | 300,000 | | |
| Fair values of identifiable net assets and liabilities: | | | | | | | |
| Assets | | | | | | | |
|
Cash
|
| | |
$
|
39,313
|
| |
|
Accounts receivable
|
| | | | 157,954 | | |
|
Customer list
|
| | | | 15,000 | | |
|
Right-of -use asset
|
| | | | 78,464 | | |
|
Total assets
|
| | | | 290,731 | | |
| Liabilities | | | | | | | |
|
Accounts payable
|
| | | | 7,343 | | |
|
Right-of -use liability
|
| | | | 78,464 | | |
|
Total liabilities
|
| | | | 85,807 | | |
|
Total fair value of identifiable net assets and liabilities
|
| | | $ | 204,924 | | |
|
Goodwill (consideration given minus fair value of identifiable net assets and liabilities)
|
| | | $ | 95,076 | | |
|
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Office equipment
|
| | | $ | 28,506 | | | | | $ | 28,506 | | |
Medical equipment
|
| | | | 89,246 | | | | | | 13,976 | | |
Furniture
|
| | | | 6,153 | | | | | | — | | |
Leasehold improvements
|
| | | | 7,311 | | | | | | — | | |
| | | | | 131,216 | | | | | | 42,482 | | |
Less accumulated. Depreciation
|
| | | | (17,172) | | | | | | (3,776) | | |
Fixed Assets, net
|
| | | $ | 114,044 | | | | | $ | 38,706 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Goodwill (Business Combination – Note 3)
|
| | | $ | — | | | | | $ | 95,076 | | |
Customer list, net (Business Combination – Note 3)
|
| | | | — | | | | | | 12,000 | | |
Ending balance
|
| | | $ | — | | | | | $ | 107,076 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Office Lease
|
| | | $ | 1,216,055 | | | | | $ | 1,130,642 | | |
Less accumulated amortization
|
| | | | (337,743) | | | | | | (344,514) | | |
Right-of-use, net
|
| | | $ | 878,312 | | | | | $ | 786,128 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Office Lease
|
| | | $ | 886,602 | | | | | $ | 786,128 | | |
Less: current portion
|
| | | | (222,325) | | | | | | (194,834) | | |
Long term portion
|
| | | $ | 664,277 | | | | | $ | 591,294 | | |
| | |
Total
|
| |||
Year ending December 31, 2024
|
| | | $ | 241,850 | | |
Year ending December 31, 2025
|
| | | | 236,520 | | |
Year ending December 31, 2026
|
| | | | 239,440 | | |
Year ending December 31, 2027
|
| | | | 132,400 | | |
Year ending December 31, 2028
|
| | | | 82,880 | | |
Total future minimum lease payments
|
| | | | 933,090 | | |
Less imputed interest
|
| | | | (46,488) | | |
PV of Payments
|
| | | $ | 886,602 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Equipment Lease
|
| | | $ | 849,662 | | | | | $ | 849,662 | | |
Less accumulated amortization
|
| | | | (305,957) | | | | | | (93,541) | | |
Right-of-use, net
|
| | | $ | 543,705 | | | | | $ | 756,121 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Equipment Lease
|
| | | $ | 712,867 | | | | | $ | 767,094 | | |
Less: current portion
|
| | | | (386,370) | | | | | | (156,128) | | |
Long term portion
|
| | | $ | 326,497 | | | | | $ | 610,966 | | |
| | |
Total
|
| |||
Year ending December 31, 2024
|
| | | $ | 386,370 | | |
Year ending December 31, 2025
|
| | | | 243,758 | | |
Year ending December 31, 2026
|
| | | | 136,484 | | |
Total future minimum lease payments
|
| | | | 766,612 | | |
Less imputed interest
|
| | | | (53,745) | | |
PV of Payments
|
| | | $ | 712,867 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Finance lease amortization
|
| | | $ | 212,416 | | | | | $ | 93,540 | | |
Finance lease interest
|
| | | | 47,990 | | | | | | 24,706 | | |
Total finance lease expense
|
| | | $ | 260,406 | | | | | $ | 118,246 | | |
| | |
December 31, 2023
|
| |
December 31, 2022
|
|
Weighted average remaining lease term
|
| |
2.6 years
|
| |
3.6 years
|
|
Weighted average discount rate
|
| |
6.92%
|
| |
6.92%
|
|
Notes Payable & Line of Credit
|
| |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Note payable issued November 29, 2021 (Face Value: $654,044)
|
| | | $ | 336,983 | | | | | $ | 426,922 | | |
Line of credit issued November 29, 2021 (Face Value: $500,000)
|
| | | | 456,097 | | | | | | 495,000 | | |
Note payable issued December 1, 2021 (Face Value: $1,500,700)
|
| | | | 1,500,600 | | | | | | 1,500,600 | | |
Note payable issued October 6, 2022 (Face Value: $666,667)
|
| | | | — | | | | | | 666,667 | | |
Note payable issued November 15, 2022 (Face Value: $200,000)
|
| | | | 200,000 | | | | | | 100,000 | | |
Note payable issued January 25, 2023 (Face Value: $100,000)
|
| | | | 100,000 | | | | | | — | | |
Note payable issued February 14, 2023 and December 15, 2022 (Face Value: $585,500, $200,000)
|
| | | | 585,000 | | | | | | 220,000 | | |
Note payable issued August 3, 2023 (Face Value: $33,000)
|
| | | | 33,000 | | | | | | — | | |
Note payable issued August 18, 2023 (Face Value: $64,000)
|
| | | | 64,000 | | | | | | — | | |
Note payable issued November 13, 2023 (Face Value: $22,000)
|
| | | | 22,000 | | | | | | — | | |
Note payable issued November 30, 2023 (Face Value: $200,000)
|
| | | | 200,000 | | | | | | — | | |
Total notes payable and line of credit
|
| | | | 3,497,680 | | | | | | 3,409,189 | | |
Less: unamortized discount on notes payable
|
| | | | — | | | | | | (275,759) | | |
Less: current portion
|
| | | | (1,997,080) | | | | | | (1,324,505) | | |
Total notes payable and line of credit
|
| | | $ | 1,500,600 | | | | | $ | 1,808,925 | | |
|
Year Ending December 31, 2024
|
| | | $ | 1,997,080 | | |
|
Year Ending December 31, 2025
|
| | | | 4,567 | | |
|
Year Ending December 31, 2026
|
| | | | 26,534 | | |
|
Year Ending December 31, 2027
|
| | | | 37,720 | | |
|
Year Ending December 31, 2028
|
| | | | 39,008 | | |
|
Thereafter
|
| | | | 1,392,771 | | |
|
Total
|
| | | $ | 3,497,680 | | |
| | |
December 31, 2023
|
| |||||||||||||||||||||
| | |
Carrying value
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Bridge Note – Embedded Derivative
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
December 31, 2022
|
| |||||||||||||||||||||
| | |
Carrying value
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Bridge Note – Embedded Derivative
|
| | | $ | 273,534 | | | | | $ | — | | | | | $ | — | | | | | $ | 273,534 | | |
Total
|
| | | $ | 273,534 | | | | | $ | — | | | | | $ | — | | | | | $ | 273,534 | | |
| | |
November 21,
2023 |
| |
December 31,
2022 |
| |
October 5,
2022 |
| |||||||||
CCC bond rates
|
| | | | — | | | | | | 15.09% | | | | | | 14.09% | | |
Probability of early termination/repayment – BC not completed
|
| | | | — | | | | | | 5% | | | | | | 10% | | |
Probability of early termination/repayment – BC completed or PIPE
completed |
| | | | — | | | | | | 95% | | | | | | 90% | | |
Probability of completing a business combination by March 31,
2023 |
| | | | — | | | | | | 50% | | | | | | 50% | | |
Probability of completing a business combination by June 30,
2023 |
| | | | — | | | | | | 50% | | | | | | 50% | | |
Implied volatility
|
| | | | 0.1% | | | | | | 6% | | | | | | 12% | | |
Risk free rate
|
| | | | 5.38% | | | | | | 4.76% | | | | | | 4.01% | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Bridge Note Embedded Derivative, Beginning Fair Value
|
| | | $ | 273,534 | | | | | $ | — | | |
Fair value at October 5, 2022 (Initial measurement)
|
| | | | — | | | | | | 208,803 | | |
Change in fair value
|
| | | | (92,449) | | | | | | 64,731 | | |
Derivative adjustment from the Exchange Agreement (Note 8)
|
| | | | (181,085) | | | | | | — | | |
Bridge Note Embedded Derivative, Ending Fair Value
|
| | | $ | — | | | | | $ | 273,534 | | |
Consolidated income statement
|
| |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Current income Tax: | | | | | | | | | | | | | |
Current tax on profits
|
| | | $ | (12,489) | | | | | $ | (22,281) | | |
Tax regarding prior years
|
| | | | 81,066 | | | | | | — | | |
Deferred tax: | | | | | | | | | | | | | |
Deferred taxation – current year
|
| | | | 1,071,219 | | | | | | (52,665) | | |
Deferred taxation – prior years
|
| | | | (69,386) | | | | | | 66,415 | | |
Income tax benefit (expense) reported in the income statement
|
| | | $ | 1,070,410 | | | | | $ | (8,531) | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Accounting loss income before tax from continuing operations
|
| | | $ | (4,930,528) | | | | | $ | (9,593) | | |
Accounting loss before income tax
|
| | | | (4,930,528) | | | | | | (9,593) | | |
Federal income tax benefit (expense) at statutory income tax rate of 21%
|
| | | | 1,035,411 | | | | | | 2,015 | | |
State income tax benefit (expense), net of federal benefit
|
| | | | 61,164 | | | | | | 10,295 | | |
Remeasurement of deferred taxes due to US tax legislative changes
|
| | | | — | | | | | | — | | |
Permanent differences, net
|
| | | | (46,979) | | | | | | (87,256) | | |
Deferred tax true-up
|
| | | | (69,386) | | | | | | 66,415 | | |
Other
|
| | | | 90,200 | | | | | | — | | |
Total
|
| | | $ | 1,070,410 | | | | | $ | (8,531) | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Non-current | | | | | | | | | | | | | |
Cash to accrual
|
| | | $ | (285,668) | | | | | $ | (952,237) | | |
Right of use assets
|
| | | | (317,376) | | | | | | (323,872) | | |
Right of use liabilities
|
| | | | 356,981 | | | | | | 326,176 | | |
NOL carryforward
|
| | | | 839,597 | | | | | | 546,861 | | |
Interest expense disallowance
|
| | | | — | | | | | | — | | |
Fixed assets
|
| | | | (2,157) | | | | | | (176) | | |
Deferred revenue
|
| | | | 4,463 | | | | | | — | | |
Charitable contribution carryover
|
| | | | 2,745 | | | | | | — | | |
Net deferred tax assets (liabilities)
|
| | | $ | 598,585 | | | | | $ | (403,248) | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
Opening balance
|
| | |
$
|
(403,248)
|
| | | | $ | — | | |
Tax benefit/(expense) during the period recognized in profit or loss
|
| | | | 1,071,219 | | | | | | (52,665) | | |
Reclass from current taxes payable
|
| | | | — | | | | | | (416,998) | | |
Deferred tax true up
|
| | | | (69,386) | | | | | | 66,415 | | |
Closing balance
|
| | | $ | 598,585 | | | | | $ | (403,248) | | |
| Condensed Consolidated Financial Statements | | | | | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | | |
| | | | | F-73 | | | |
| | | | | F-75 | | | |
| | | | | F-76 | | |
| | |
March 31, 2024
|
| |
December 31, 2023
|
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 74,184 | | | | | $ | 63,037 | | |
Accounts receivable, net
|
| | | | 2,964,616 | | | | | | 2,266,302 | | |
Due from related party
|
| | | | 1,047,771 | | | | | | 1,008,101 | | |
Prepaids and other current assets
|
| | | | 140,665 | | | | | | 123,205 | | |
Total current assets
|
| | | | 4,227,236 | | | | | | 3,460,645 | | |
Note receivable, related party
|
| | | | 245,500 | | | | | | 245,500 | | |
Right-of-use asset, net
|
| | | | 1,316,153 | | | | | | 1,422,017 | | |
Deferred tax asset
|
| | | | 563,094 | | | | | | 598,585 | | |
Deposit
|
| | | | 20,720 | | | | | | 20,720 | | |
Fixed assets, net
|
| | | | 110,296 | | | | | | 114,044 | | |
Total assets
|
| | | $ | 6,482,999 | | | | | $ | 5,861,511 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 609,838 | | | | | $ | 391,923 | | |
Accrued liabilities
|
| | | | 1,195,054 | | | | | | 841,514 | | |
Deferred revenue
|
| | | | 20,000 | | | | | | 20,000 | | |
Right-of-use liability
|
| | | | 698,480 | | | | | | 608,695 | | |
Line of credit
|
| | | | 456,097 | | | | | | 456,097 | | |
Factoring payable
|
| | | | 491,974 | | | | | | 660,578 | | |
Notes payable, net of discount
|
| | | | 1,581,183 | | | | | | 1,540,983 | | |
Due on acquisition purchase
|
| | | | 300,000 | | | | | | 300,000 | | |
Contingent liability
|
| | | | 600,000 | | | | | | 600,000 | | |
Loan payable, related party
|
| | | | 200,000 | | | | | | 200,000 | | |
Total current liabilities
|
| | | | 6,152,626 | | | | | | 5,619,790 | | |
Notes payable, less current portion, net of discount
|
| | | | 1,500,600 | | | | | | 1,500,600 | | |
Right-of-use liability, less current portion
|
| | | | 885,940 | | | | | | 990,774 | | |
Total liabilities
|
| | | | 8,539,166 | | | | | | 8,111,164 | | |
Commitments and contingencies (Note 8) | | | | | | | | | | | | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Common stock, $1.00 par value; 5,000 shares authorized 4,978 issued and outstanding
|
| | | | 4,978 | | | | | | 4,978 | | |
Additional paid in capital
|
| | | | 209,521 | | | | | | 209,521 | | |
Accumulated deficit
|
| | | | (2,270,666) | | | | | | (2,464,152) | | |
Total stockholders’ deficit
|
| | | | (2,056,167) | | | | | | (2,249,653) | | |
Total liabilities and stockholders’ deficit
|
| | | $ | 6,482,999 | | | | | $ | 5,861,511 | | |
| | |
For the three months
ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Revenues | | | | | | | | | | | | | |
Patient Fees
|
| | | $ | 1,121,355 | | | | | $ | 999,878 | | |
Telehealth Fees
|
| | | | 512,710 | | | | | | 673,337 | | |
Institutional Fees
|
| | | | 5,700 | | | | | | 275,476 | | |
Total Revenue
|
| | | | 1,639,765 | | | | | | 1,948,691 | | |
Cost of Goods Sold
|
| | | | 400,563 | | | | | | 790,133 | | |
Gross Margin
|
| | | | 1,239,202 | | | | | | 1,158,558 | | |
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | | 288,684 | | | | | | 574,979 | | |
Compensation and related benefits
|
| | | | 402,333 | | | | | | 617,794 | | |
Professional fees
|
| | | | 110,182 | | | | | | 47,400 | | |
Transaction expenses
|
| | | | 92,000 | | | | | | 140,769 | | |
Total operating expenses
|
| | | | 893,199 | | | | | | 1,380,942 | | |
Net operating profit (loss)
|
| | | | 346,003 | | | | | | (222,384) | | |
Other income (expenses): | | | | | | | | | | | | | |
Interest expense
|
| | | | (78,714) | | | | | | (121,387) | | |
Change in fair value on derivative
|
| | | | — | | | | | | 26,069 | | |
Other expense
|
| | | | (18,200) | | | | | | (3,935) | | |
Total other expense
|
| | | | (96,914) | | | | | | (99,253) | | |
Income (loss) before income tax
|
| | | | 249,089 | | | | | | (321,637) | | |
Income tax (expense) benefit
|
| | | | (55,603) | | | | | | 72,270 | | |
Net income (loss)
|
| | | $ | 193,486 | | | | | $ | (249,367) | | |
Net income (loss) per share attributable to common shareholders: | | | | | | | | | | | | | |
Basic
|
| | | $ | 38.9 | | | | | $ | (50.1) | | |
Diluted
|
| | | $ | 38.9 | | | | | $ | (50.1) | | |
Weighted average number of shares outstanding, basic, and diluted
|
| | | | 4,978 | | | | | | 4,978 | | |
| | |
Common Stock
|
| |
Additional
Paid In Capital |
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance December 31, 2023
|
| | | | 4,978 | | | | | $ | 4,978 | | | | | $ | 209,521 | | | | | $ | (2,464,152) | | | | | $ | (2,249,653) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 193,486 | | | | | | 193,486 | | |
Balance March 31, 2024
|
| | | | 4,978 | | | | | $ | 4,978 | | | | | $ | 209,521 | | | | | $ | (2,270,666) | | | | | $ | (2,056,167) | | |
| | |
Common Stock
|
| |
Additional
Paid In Capital |
| |
Retained
Earnings |
| |
Total
|
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance December 31, 2022
|
| | | | 4,978 | | | | | $ | 4,978 | | | | | $ | 209,521 | | | | | $ | 1,395,966 | | | | | $ | 1,610,465 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (249,367) | | | | | | (249,367) | | |
Balance March 31, 2023
|
| | | | 4,978 | | | | | $ | 4,978 | | | | | $ | 209,521 | | | | | $ | 1,146,599 | | | | | $ | 1,361,098 | | |
| | |
For the three months
ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Net income (loss)
|
| | | $ | 193,486 | | | | | $ | (249,367) | | |
Adjustments to reconcile net income (loss) to net cash used by operating activities:
|
| | | | | | | | | | | | |
Amortization of discount on note payable
|
| | | | — | | | | | | 41,795 | | |
Amortization of right of use asset
|
| | | | 53,104 | | | | | | 53,104 | | |
Depreciation and amortization
|
| | | | 3,748 | | | | | | 3,824 | | |
Provision for doubtful accounts
|
| | | | 89,708 | | | | | | 279,421 | | |
Change in fair value on embedded derivative
|
| | | | — | | | | | | (26,069) | | |
Loss on factoring payable
|
| | | | 18,200 | | | | | | — | | |
Changes in working capital requirements: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (788,023) | | | | | | (708,299) | | |
Due from related party
|
| | | | (39,670) | | | | | | (115,193) | | |
Prepaid and other current assets
|
| | | | (17,460) | | | | | | (6,651) | | |
Deferred tax asset
|
| | | | 35,491 | | | | | | — | | |
Accounts payable
|
| | | | 217,914 | | | | | | 155,574 | | |
Accrued liabilities
|
| | | | 418,622 | | | | | | (41,638) | | |
Deferred tax liability
|
| | | | — | | | | | | (72,270) | | |
Net cash from operating activities
|
| | | | 185,120 | | | | | | (685,769) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds on note receivable, related party
|
| | | | — | | | | | | 90,500 | | |
Net cash from investing activities
|
| | | | — | | | | | | 90,500 | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from factoring payable
|
| | | | 31,500 | | | | | | — | | |
Proceeds from notes payable
|
| | | | 16,200 | | | | | | 585,000 | | |
Payments on notes payable
|
| | | | — | | | | | | (53,816) | | |
Repayment on factoring payable
|
| | | | (221,673) | | | | | | — | | |
Repayment on leased equipment
|
| | | | — | | | | | | (47,945) | | |
Net cash from financing activities
|
| | | | (173,973) | | | | | | 483,239 | | |
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
| | | | 11,147 | | | | | | (112,030) | | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | | | 63,037 | | | | | | 147,685 | | |
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
| | | $ | 74,184 | | | | | $ | 35,655 | | |
Supplemental disclosure of cash flow information
|
| | | | | | | | | | | | |
Cash paid for interest expense
|
| | | $ | 1,351 | | | | | $ | 15,696 | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | — | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Office equipment
|
| | | $ | 28,506 | | | | | $ | 28,506 | | |
Medical equipment
|
| | | | 89,246 | | | | | | 89,246 | | |
Furniture
|
| | | | 6,153 | | | | | | 6,153 | | |
Leasehold improvements
|
| | | | 7,311 | | | | | | 7,311 | | |
| | | | | 131,216 | | | | | | 131,216 | | |
Less accumulated. Depreciation
|
| | | | (20,920) | | | | | | (17,172) | | |
Fixed Assets, net
|
| | | $ | 110,296 | | | | | $ | 114,044 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Office Lease
|
| | | $ | 1,119,026 | | | | | $ | 1,216,055 | | |
Less accumulated amortization
|
| | | | (293,475) | | | | | | (337,743) | | |
Right-of-use, net
|
| | | $ | 825,551 | | | | | $ | 878,312 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Office Lease
|
| | | $ | 861,981 | | | | | $ | 886,602 | | |
Less: current portion
|
| | | | (251,169) | | | | | | (222,325) | | |
Long term portion
|
| | | $ | 610,812 | | | | | $ | 664,277 | | |
| | |
Total
|
| |||
Year ending December 31, 2024
|
| | | $ | 270,740 | | |
Year ending December 31, 2025
|
| | | | 237,240 | | |
Year ending December 31, 2026
|
| | | | 220,190 | | |
Year ending December 31, 2027
|
| | | | 123,120 | | |
Year ending December 31, 2028
|
| | | | 51,800 | | |
Total future minimum lease payments
|
| | | | 903,090 | | |
Less imputed interest
|
| | | | (41,109) | | |
PV of Payments
|
| | | $ | 861,981 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Equipment Lease
|
| | | $ | 849,662 | | | | | $ | 849,662 | | |
Less accumulated amortization
|
| | | | (359,060) | | | | | | (305,957) | | |
Right-of-use, net
|
| | | $ | 490,602 | | | | | $ | 543,705 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Equipment Lease
|
| | | $ | 722,439 | | | | | $ | 712,867 | | |
Less: current portion
|
| | | | (447,311) | | | | | | (386,370) | | |
Long term portion
|
| | | $ | 275,128 | | | | | $ | 326,497 | | |
| | |
Total
|
| |||
Year ending December 31, 2024
|
| | | $ | 447,309 | | |
Year ending December 31, 2025
|
| | | | 243,758 | | |
Year ending December 31, 2026
|
| | | | 75,545 | | |
Total future minimum lease payments
|
| | | | 766,612 | | |
Less imputed interest
|
| | | | (44,173) | | |
PV of Payments
|
| | | $ | 722,439 | | |
| | |
March 31,
2024 |
| |
March 31,
2023 |
| ||||||
Finance lease amortization
|
| | | $ | 53,104 | | | | | $ | 53,104 | | |
Finance lease interest
|
| | | | 9,573 | | | | | | 12,995 | | |
Total finance lease expense
|
| | | $ | 62,677 | | | | | $ | 66,099 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
|
Weighted average remaining lease term
|
| |
2.3 years
|
| |
2.6 years
|
|
Weighted average discount rate
|
| |
6.92%
|
| |
6.92%
|
|
Notes Payable & Line of Credit
|
| |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Note payable issued November 29, 2021 (Face Value: $654,044)
|
| | | $ | 336,983 | | | | | $ | 336,983 | | |
Line of credit issued November 29, 2021 (Face Value: $500,000)
|
| | | | 456,097 | | | | | | 456,097 | | |
Note payable issued December 1, 2021 (Face Value: $1,500,700)
|
| | | | 1,500,600 | | | | | | 1,500,600 | | |
Note payable issued November 15, 2022 (Face Value: $200,000)
|
| | | | 200,000 | | | | | | 200,000 | | |
Note payable issued January 25, 2023 (Face Value: $100,000)
|
| | | | 100,000 | | | | | | 100,000 | | |
Note payable issued February 14, 2023 and December 15, 2022 (Face Value: $585,500)
|
| | | | 585,000 | | | | | | 585,000 | | |
Note payable issued August 3, 2023 (Face Value: $33,000)
|
| | | | 33,000 | | | | | | 33,000 | | |
Note payable issued August 18, 2023 (Face Value: $64,000)
|
| | | | 64,000 | | | | | | 64,000 | | |
Note payable issued November 13, 2023 (Face Value: $22,000)
|
| | | | 22,000 | | | | | | 22,000 | | |
Note payable issued November 30, 2023 (Face Value: $200,000)
|
| | | | 224,000 | | | | | | 200,000 | | |
Notes Payable & Line of Credit
|
| |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
Note payable issued January 14, 2024 (Face Value: $16,200)
|
| | | | 16,200 | | | | | | — | | |
Total notes payable and line of credit
|
| | | | 3,537,880 | | | | | | 3,497,680 | | |
Less: current portion
|
| | | | (2,037,280) | | | | | | (1,997,080) | | |
Total notes payable and line of credit
|
| | | $ | 1,500,600 | | | | | $ | 1,500,600 | | |
|
|
Year Ending December 31, 2024
|
| | | $ | 2,037,280 | | |
|
Year Ending December 31, 2025
|
| | | | 4,567 | | |
|
Year Ending December 31, 2026
|
| | | | 26,534 | | |
|
Year Ending December 31, 2027
|
| | | | 37,720 | | |
|
Year Ending December 31, 2028
|
| | | | 39,008 | | |
|
Thereafter
|
| | | | 1,392,771 | | |
|
Total
|
| | | $ | 3,537,880 | | |
| | |
2024
|
| |
2023
|
| ||||||
Income (loss) before taxes
|
| | | $ | 249,089 | | | | | $ | (321,637) | | |
Expected United States income tax (expense) benefit at statutory rate of 21%
|
| | | $ | (52,318) | | | | | $ | 68,000 | | |
Expected State income tax (expense) benefit at statutory rate of 1.32% at
March 31, 2024 and 2023, respectively |
| | | | (3,285) | | | | | | 4,270 | | |
Total income tax (expense) benefit
|
| | | $ | (55,603) | | | | | $ | 72,270 | | |
| | |
December 31,
2023 |
| |
December 31,
2022 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 1,863 | | | | | $ | 106,998 | | |
Total Current Assets
|
| | | | 1,863 | | | | | | 106,998 | | |
Investments held in Trust Account
|
| | | | 1,368,637 | | | | | | 7,527,369 | | |
Total Assets
|
| | | $ | 1,370,500 | | | | | $ | 7,634,367 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 3,303,836 | | | | | $ | 1,886,312 | | |
Excise tax payable
|
| | | | 72,396 | | | | | | — | | |
Income taxes payable
|
| | | | 187,225 | | | | | | 187,225 | | |
Advances from related parties
|
| | | | 117,871 | | | | | | 43,900 | | |
Bridge Note, net of discount
|
| | | | — | | | | | | 292,800 | | |
Accrued interest on Exchange Note
|
| | | | 23,964 | | | | | | — | | |
Additional Bridge Promissory note, net of discount
|
| | | | 102,726 | | | | | | — | | |
Promissory note – M2B
|
| | | | 167,958 | | | | | | — | | |
Exchange Note
|
| | | | 2,621,558 | | | | | | — | | |
ELOC
|
| | | | 203,720 | | | | | | — | | |
Promissory note – related party
|
| | | | 926,500 | | | | | | 350,000 | | |
Extension Note, net of discount
|
| | | | 233,774 | | | | | | — | | |
Bridge Note – Bifurcated Derivative
|
| | | | — | | | | | | 364,711 | | |
Extension Note – Bifurcated Derivative
|
| | | | 22,872 | | | | | | — | | |
PIPE Forward Contract Derivative
|
| | | | — | | | | | | 170,666 | | |
Total Current Liabilities
|
| | | | 7,984,400 | | | | | | 3,295,614 | | |
Deferred underwriting fee payable
|
| | | | 4,370,000 | | | | | | 4,370,000 | | |
Total Liabilities
|
| | | | 12,354,400 | | | | | | 7,665,614 | | |
Commitments | | | | | | | | | | | | | |
Common stock, $0.0001 par value, subject to possible redemption; 114,966 and 694,123 shares issued and outstanding at redemption value of $11.15 and $10.65 per share as of December 31, 2023 and 2022, respectively
|
| | | | 1,281,957 | | | | | | 7,395,349 | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,489,000 and 3,462,000 shares issued and outstanding (excluding 114,966 and 694,123 shares subject to redemption) as of December 31, 2023 and 2022, respectively
|
| | | | 350 | | | | | | 347 | | |
Additional paid-in capital
|
| | | | 550,246 | | | | | | 292,973 | | |
Accumulated deficit
|
| | | | (12,816,453) | | | | | | (7,719,916) | | |
Total Stockholders’ Deficit
|
| | | | (12,265,857) | | | | | | (7,426,596) | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
| | | $ | 1,370,500 | | | | | $ | 7,634,367 | | |
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
General and administrative expenses
|
| | | $ | 2,593,765 | | | | | $ | 3,594,967 | | |
Loss from operations
|
| | | | (2,593,765) | | | | | | (3,594,967) | | |
Other (expense) income: | | | | | | | | | | | | | |
Default interest expense – Bridge Note
|
| | | | (1,579,927) | | | | | | — | | |
Interest expense – Bridge Note
|
| | | | (429,007) | | | | | | (125,980) | | |
Interest expense – Additional Bridge
|
| | | | (12,642) | | | | | | — | | |
Interest expense – M2B
|
| | | | (22,958) | | | | | | — | | |
Interest expense – Extension Note
|
| | | | (133,748) | | | | | | — | | |
Initial fair value of Additional Bridge Note
|
| | | | 11,111 | | | | | | — | | |
Initial fair value of ELOC
|
| | | | (204,039) | | | | | | — | | |
Change in fair value of Additional Bridge Note
|
| | | | (2,726) | | | | | | — | | |
Change in fair value of Exchange Note
|
| | | | (97,814) | | | | | | — | | |
Change in fair value of ELOC
|
| | | | 319 | | | | | | — | | |
Change in fair value of Bridge Note – Bifurcated Derivative
|
| | | | 120,267 | | | | | | (86,307) | | |
Change in fair value of Extension Note – Bifurcated Derivative
|
| | | | 1,630 | | | | | | — | | |
Change in fair value of PIPE Forward Contract Derivative
|
| | | | 170,666 | | | | | | (170,666) | | |
Interest earned on investments held in Trust Account
|
| | | | 358,767 | | | | | | 922,644 | | |
Total other (expense) income
|
| | | | (1,820,101) | | | | | | 539,691 | | |
Loss before provision for income taxes
|
| | | | (4,413,866) | | | | | | (3,055,276) | | |
Provision for income taxes
|
| | | | — | | | | | | (187,225) | | |
Net loss
|
| | | $ | (4,413,866) | | | | | $ | (3,242,501) | | |
Basic and diluted weighted average common shares outstanding
|
| | | | 4,096,353 | | | | | | 12,741,219 | | |
Basic and diluted net loss per common share
|
| | | $ | (1.08) | | | | | $ | (0.25) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – December 31, 2021
|
| | | | 3,432,000 | | | | | $ | 344 | | | | | $ | — | | | | | $ | (3,334,812) | | | | | $ | (3,334,468) | | |
Accretion of common stock subject to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,142,603) | | | | | | (1,142,603) | | |
Issuance of 30,000 shares issued with Bridge Note, net of offering cost
|
| | | | 30,000 | | | | | | 3 | | | | | | 284,421 | | | | | | — | | | | | | 284,424 | | |
Issuance of 173,913 warrants issued with Bridge Note, net of offering cost
|
| | | | — | | | | | | — | | | | | | 8,552 | | | | | | — | | | | | | 8,552 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (3,242,501) | | | | | | (3,242,501) | | |
Balance – December 31, 2022
|
| | | | 3,462,000 | | | | | | 347 | | | | | | 292,973 | | | | | | (7,719,916) | | | | | | (7,426,596) | | |
Issuance of 20,000 shares issued to settle legal claim
|
| | | | 20,000 | | | | | | 2 | | | | | | 214,198 | | | | | | — | | | | | | 214,200 | | |
Issuance of 7,000 shares and warrants issued with Extension Note, net of offering costs
|
| | | | 7,000 | | | | | | 1 | | | | | | 115,471 | | | | | | — | | | | | | 115,472 | | |
Excise tax payable attributable to redemption of
common stock |
| | | | — | | | | | | — | | | | | | (72,396) | | | | | | — | | | | | | (72,396) | | |
Accretion of common stock subject to redemption value
|
| | | | — | | | | | | — | | | | | | — | | | | | | (682,671) | | | | | | (682,671) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (4,413,866) | | | | | | (4,413,866) | | |
Balance – December 31, 2023
|
| | | | 3,489,000 | | | | | $ | 350 | | | | | $ | 550,246 | | | | | $ | (12,816,453) | | | | | $ | (12,265,857) | | |
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (4,413,866) | | | | | $ | (3,242,501) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on investments held in Trust Account
|
| | | | (358,767) | | | | | | (922,644) | | |
Initial loss on and change in fair value of ELOC
|
| | | | 203,720 | | | | | | — | | |
Initial gain on fair value of Additional Bridge Note
|
| | | | (11,111) | | | | | | — | | |
Change in fair value of Exchange Note
|
| | | | 97,814 | | | | | | — | | |
Change in fair value of Additional Bridge Note
|
| | | | 2,726 | | | | | | — | | |
Change in fair value of Bridge Note – Bifurcated Derivative
|
| | | | (120,267) | | | | | | 86,307 | | |
Change in fair value of Extension Note – Bifurcated Derivative
|
| | | | (1,630) | | | | | | — | | |
Change in fair value of PIPE Forward Contract Derivative
|
| | | | (170,666) | | | | | | 170,666 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid and other current assets
|
| | | | — | | | | | | 457,605 | | |
Accounts payable and accrued expenses
|
| | | | 1,631,724 | | | | | | 1,746,149 | | |
Default interest on Bridge Note
|
| | | | 1,579,927 | | | | | | — | | |
Accrued interest – Bridge Note
|
| | | | 429,006 | | | | | | 125,980 | | |
Accrued interest – Additional Bridge Note
|
| | | | 12,642 | | | | | | — | | |
Accrued interest – M2B Note
|
| | | | 22,958 | | | | | | — | | |
Accrued interest – Extension Note
|
| | | | 133,748 | | | | | | — | | |
Income taxes payable
|
| | | | — | | | | | | 187,225 | | |
Net cash used in operating activities
|
| | | | (962,042) | | | | | | (1,391,213) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash into Trust Account
|
| | | | (350,000) | | | | | | (350,000) | | |
Cash withdrawn from Trust Account to pay franchise and income taxes
|
| | | | 71,436 | | | | | | 110,472,253 | | |
Cash withdrawn from Trust Account in connection with redemption
|
| | | | 6,796,063 | | | | | | — | | |
Net cash provided by investing activities
|
| | | | 6,517,499 | | | | | | 110,122,253 | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Advances from related party
|
| | | | 95,037 | | | | | | — | | |
Repayment of advances from related party
|
| | | | (21,066) | | | | | | — | | |
Proceeds from Bridge Note
|
| | | | 100,000 | | | | | | 800,000 | | |
Proceeds from M2B Note
|
| | | | 145,000 | | | | | | — | | |
Payment of Financing Cost in Bridge Note
|
| | | | — | | | | | | (61,800) | | |
Proceeds from promissory note – related party
|
| | | | 576,500 | | | | | | 350,000 | | |
Proceeds from promissory note
|
| | | | 240,000 | | | | | | — | | |
Redemption of common stock
|
| | | | (6,796,063) | | | | | | (110,472,254) | | |
Net cash used in financing activities
|
| | | | (5,660,592) | | | | | | (109,384,054) | | |
Net Change in Cash
|
| | | | (105,135) | | | | | | (653,014) | | |
Cash – Beginning of year
|
| | | | 106,998 | | | | | | 760,012 | | |
Cash – End of year
|
| | | $ | 1,863 | | | | | $ | 106,998 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Common stock issued for legal settlement
|
| | | $ | 214,200 | | | | | $ | 284,424 | | |
Financing costs included in Extension Note
|
| | | $ | 60,000 | | | | | $ | — | | |
Warrants issued as financing cost in Extension Note
|
| | | $ | 40,130 | | | | | $ | 8,552 | | |
Bridge Promissory note, net of discount – settled with Exchange Note
|
| | | $ | 2,279,300 | | | | | $ | — | | |
Bridge Note – Embedded Derivative – settled with Exchange Note
|
| | | $ | 244,444 | | | | | $ | — | | |
Excise tax attributable to redemption of common stock
|
| | | $ | 72,396 | | | | | $ | — | | |
Common stock issued as financing cost in Extension Note
|
| | | $ | 78,349 | | | | | $ | — | | |
|
Gross proceeds
|
| | | $ | 115,000,000 | | |
| Less: | | | | | | | |
|
Proceeds allocated to public warrants
|
| | | | (12,483,555) | | |
|
Common stock issuance costs
|
| | | | (6,923,767) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 21,132,322 | | |
|
Common stock subject to possible redemption, December 31, 2021
|
| | | | 116,725,000 | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 1,142,603 | | |
| Less: | | | | | | | |
|
Redemptions
|
| | | | (110,472,254) | | |
|
Common stock subject to possible redemption, December 31, 2022
|
| | | | 7,395,349 | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 682,671 | | |
| Less: | | | | | | | |
|
Redemptions
|
| | | | (6,796,063) | | |
|
Common stock subject to possible redemption, December 31, 2023
|
| | | $ | 1,281,957 | | |
| | |
For the years ended
December 31, |
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
| | |
Common Stock
|
| |
Common Stock
|
| ||||||
Basic and diluted net loss per of common stock | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Allocation of net loss
|
| | | $ | (4,413,866) | | | | | $ | (3,242,501) | | |
Denominator: | | | | | | | | | | | | | |
Basic and diluted weighted average common shares outstanding
|
| | | | 4,096,353 | | | | | | 12,741,219 | | |
Basic and diluted net loss per common share
|
| | | $ | (1.08) | | | | | $ | (0.25) | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating loss carryforward
|
| | | $ | 461,882 | | | | | $ | (379) | | |
Start-up/organization expenses
|
| | | | 1,622,610 | | | | | | 962,297 | | |
Total deferred tax assets
|
| | | | 2,084,492 | | | | | | 961,918 | | |
Valuation allowance
|
| | | | (2,084,492) | | | | | | (961,918) | | |
Deferred tax assets, net of allowance
|
| | | $ | — | | | | | $ | — | | |
| | |
For the years ended
December 31, |
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Federal | | | | | | | | | | | | | |
Current
|
| | | $ | — | | | | | $ | 187,225 | | |
Deferred
|
| | | | (926,728) | | | | | | (741,805) | | |
State | | | | | | | | | | | | | |
Current
|
| | | | — | | | | | | — | | |
Deferred
|
| | | | (191,524) | | | | | | (153,306) | | |
Change in valuation allowance
|
| | | | 1,118,252 | | | | | | 895,111 | | |
Income tax provision
|
| | | $ | — | | | | | $ | 187,225 | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Statutory federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal tax benefit
|
| | | | 4.3% | | | | | | 4.3% | | |
Change in fair value of Bridge Note – bifurcated derivative
|
| | | | 0.7% | | | | | | (0.7)% | | |
Change in fair value of PIPE forward contract derivative
|
| | | | 1.0% | | | | | | (1.4)% | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Initial fair value of ELOC
|
| | | | (1.2)% | | | | | | — | | |
Initial fair value of Additional Bridge
|
| | | | 0.1% | | | | | | — | | |
Change in fair value of Exchange Note
|
| | | | (0.6)% | | | | | | — | | |
Change in fair value of ELOC
|
| | | | 0.0% | | | | | | — | | |
Change in fair value of Additional Bridge Note
|
| | | | 0.0% | | | | | | — | | |
Change in valuation allowance
|
| | | | (25.3)% | | | | | | (29.3)% | | |
Income tax provision
|
| | | | 0.0% | | | | | | (6.1)% | | |
|
| | |
Trading Securities
|
| |
Level
|
| |
Fair Value
|
| ||||||
December 31, 2023
|
| |
Money Market Funds
|
| | | | 1 | | | | | $ | 1,368,637 | | |
| | |
Trading Securities
|
| |
Level
|
| |
Fair Value
|
| ||||||
December 31, 2022
|
| |
Money Market Funds
|
| | | | 1 | | | | | $ | 7,527,369 | | |
December 31, 2023
|
| |
Fair Value
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Extension Note – Bifurcated Derivative
|
| | | $ | 22,872 | | | | | $ | — | | | | | $ | — | | | | | $ | 22,872 | | |
ELOC
|
| | | $ | 203,720 | | | | | $ | — | | | | | $ | — | | | | | $ | 203,720 | | |
Additional Bridge Note
|
| | | $ | 102,726 | | | | | $ | — | | | | | $ | — | | | | | $ | 102,726 | | |
Exchange Note
|
| | | $ | 2,621,558 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,621,558 | | |
December 31, 2022
|
| |
Fair Value
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
PIPE Forward Contract
|
| | | $ | 170,666 | | | | | $ | — | | | | | $ | — | | | | | $ | 170,666 | | |
Bridge Note – Bifurcated Derivative
|
| | | $ | 364,711 | | | | | $ | — | | | | | $ | — | | | | | $ | 364,711 | | |
| | |
November 21,
2023 |
| |
December 31,
2022 |
| ||||||
CCC bond rates
|
| | | | n/a | | | | | | 15.09% | | |
Risk-free interest rate
|
| | | | 5.38% | | | | | | n/a | | |
Stock price
|
| | | $ | 12.64 | | | | | | n/a | | |
Volatility
|
| | | | 0.1% | | | | | | n/a | | |
Weighted term
|
| | | | 0.61 | | | | | | n/a | | |
Probability of early termination/repayment – business combination not completed
|
| | | | —% | | | | | | 5% | | |
Probability of early termination/repayment – business combination completed, or PIPE completed
|
| | | | —% | | | | | | 95% | | |
Probability of completing a business combination by March 31,
2023 |
| | | | —% | | | | | | 50% | | |
Probability of completing a business combination by June 30, 2023
|
| | | | —% | | | | | | 50% | | |
| | |
December 31,
2023 |
| |
May 5,
2023 |
| ||||||
Risk-free interest rate
|
| | | | —% | | | | | | 5.13% | | |
CCC bond rates
|
| | | | 12.96% | | | | | | 14.69% | | |
Expected term (years)
|
| | | | 0.25 | | | | | | 0.38 | | |
Probability of completing a business combination by August 30, 2023
|
| | | | —% | | | | | | 25% | | |
Probability of completing a business combination by September 30, 2023
|
| | | | —% | | | | | | 75% | | |
Probability of completing a business combination by December 31, 2023
|
| | | | —% | | | | | | —% | | |
Probability of completing a business combination by March 31, 2024
|
| | | | 100% | | | | | | —% | | |
| | |
June 30,
2023 |
| |
December 31,
2022 |
| |
October 6,
2022 |
| |||||||||
Risk-free interest rate
|
| | | | 5.43% | | | | | | 4.76% | | | | | | 4.00% | | |
Expected term (years)
|
| | | | 0.23 | | | | | | 0.37 | | | | | | 0.61 | | |
Probability of completing a business combination
|
| | | | 75% | | | | | | 95% | | | | | | 90% | | |
| | |
December 31,
2023 |
| |
November 21,
2023 |
| ||||||
Risk-free interest rate
|
| | | | 5.40% | | | | | | 5.48% | | |
Expected term (years)
|
| | | | 0.25 | | | | | | 0.36 | | |
Volatility
|
| | | | 95% | | | | | | 95% | | |
Stock price
|
| | | $ | 2.00 | | | | | $ | 2.00 | | |
Debt discount rate
|
| | | | 39.7% | | | | | | 41.5% | | |
Probability of early termination/repayment – business combination not completed
|
| | | | 20% | | | | | | 20% | | |
Probability of completing a business combination by March 31,
2024 |
| | | | 80% | | | | | | 80% | | |
| | |
December 31,
2023 |
| |
November 21,
2023 |
| ||||||
Risk-free interest rate
|
| | | | 5.21% | | | | | | 5.48% | | |
Expected term (years)
|
| | | | 0.71 | | | | | | 0.61 | | |
Volatility
|
| | | | 95% | | | | | | 96% | | |
Stock price
|
| | | $ | 2.00 | | | | | $ | 2.00 | | |
Debt discount rate
|
| | | | 47.54% | | | | | | 49.17% | | |
Probability of completing a business combination by March 31,
2024 |
| | | | 80% | | | | | | 80% | | |
| | |
December 31,
2023 |
| |
November 21,
2023 |
| ||||||
Risk-free interest rate
|
| | | | 3.99% | | | | | | 4.57% | | |
Expected term (years)
|
| | | | 3.25 | | | | | | 3.36 | | |
Volatility
|
| | | | 96.4% | | | | | | 96.4% | | |
Stock price
|
| | | $ | 2.00 | | | | | $ | 2.00 | | |
Probability of completing a business combination by March 31,
2024 |
| | | | 80% | | | | | | 80% | | |
| | |
Forward
Contract |
| |
Bridge Note -
Bifurcated Derivative |
| |
Extension Note -
Bifurcated Derivative |
| |||||||||
Fair value as of December 31, 2022
|
| | | $ | 170,666 | | | | | $ | 364,711 | | | | | $ | — | | |
Initial value of Extension Note – Bifurcated Derivative May 5, 2023
|
| | | | — | | | | | | — | | | | | | 24,502 | | |
Change in valuation inputs or other assumptions
|
| | | | 529,840 | | | | | | (120,267) | | | | | | (1,630) | | |
Derecognized value at termination date
|
| | | | (700,506) | | | | | | (244,444) | | | | | | — | | |
Fair value as of December 31, 2023
|
| | | $ | — | | | | | $ | — | | | | | $ | 22,872 | | |
| | |
Exchange
Note |
| |
Additional
Bridge Note |
| |
ELOC
|
| |||||||||
Fair value as of January 1, 2023
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial value of Extension Note, Additional Bridge Note and
ELOC November 21, 2023 |
| | | | 2,523,744 | | | | | | 100,000 | | | | | | 204,039 | | |
Change in valuation inputs or other assumptions
|
| | | | (97,814) | | | | | | 2,726 | | | | | | (318) | | |
Fair value as of December 31, 2023
|
| | | $ | 2,621,558 | | | | | $ | 102,726 | | | | | $ | 203,720 | | |
| | |
Forward
Contract |
| |
Bridge Note -
Bifurcated Derivative |
| |
Extension Note -
Bifurcated Derivative |
| |||||||||
Fair value at October 5, 2022 (Initial measurement)
|
| | | $ | — | | | | | $ | 278,404 | | | | | $ | — | | |
Fair value at October 6, 2022 (Initial measurement)
|
| | | | — | | | | | | — | | | | | | — | | |
Change in valuation inputs or other assumptions
|
| | | | 170,666 | | | | | | 86,307 | | | | | | — | | |
Fair value as of December 31, 2022
|
| | | $ | 170,666 | | | | | $ | 364,711 | | | | | $ | — | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 724 | | | | | $ | 1,863 | | |
Total current assets
|
| | | | 724 | | | | | | 1,863 | | |
Investments held in Trust Account
|
| | | | 1,386,490 | | | | | | 1,368,637 | | |
Total Assets
|
| | | $ | 1,387,214 | | | | | $ | 1,370,500 | | |
LIABILITIES, COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 3,642,780 | | | | | $ | 3,303,836 | | |
Excise tax payable
|
| | | | 72,396 | | | | | | 72,396 | | |
Income taxes payable
|
| | | | 187,225 | | | | | | 187,225 | | |
Advances from related parties
|
| | | | 592,800 | | | | | | 117,871 | | |
Accrued interest on Exchange and Additional Bridge Notes
|
| | | | 78,061 | | | | | | 23,964 | | |
Additional Bridge Notes
|
| | | | 156,564 | | | | | | 102,726 | | |
Promissory Note – M2B
|
| | | | — | | | | | | 167,958 | | |
Exchange Note
|
| | | | 2,814,359 | | | | | | 2,621,558 | | |
ELOC
|
| | | | 189,764 | | | | | | 203,720 | | |
Promissory Note – related party
|
| | | | 926,500 | | | | | | 926,500 | | |
First Fire Note, net of discount
|
| | | | 285,614 | | | | | | 233,774 | | |
First Fire Note – Bifurcated Derivative
|
| | | | 22,868 | | | | | | 22,872 | | |
Total current liabilities
|
| | | | 8,968,931 | | | | | | 7,984,400 | | |
Deferred underwriting fee payable
|
| | | | 4,370,000 | | | | | | 4,370,000 | | |
Total Liabilities
|
| | | | 13,338,931 | | | | | | 12,354,400 | | |
Commitments | | | | | | | | | | | | | |
Common stock subject to possible redemption, $0.0001 par value; 114,966 shares issued and outstanding at redemption value of $11.15 per share as of March 31, 2024 and December 31, 2023
|
| | | | 1,281,957 | | | | | | 1,281,957 | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,489,000 shares issued and outstanding (excluding 114,966 shares subject to redemption) as of March 31, 2024 and December 31, 2023, respectively
|
| | | | 350 | | | | | | 350 | | |
Additional paid-in capital
|
| | | | 550,246 | | | | | | 550,246 | | |
Accumulated deficit
|
| | | | (13,784,270) | | | | | | (12,816,453) | | |
Total Stockholders’ Deficit
|
| | | | (13,233,674) | | | | | | (12,265,857) | | |
TOTAL LIABILITIES, COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT
|
| | | $ | 1,387,214 | | | | | $ | 1,370,500 | | |
| | |
For the Three Months
Ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
General and administrative costs
|
| | | $ | 674,262 | | | | | $ | 707,592 | | |
Loss from operations
|
| | | | (674,262) | | | | | | (707,592) | | |
Other (expense) income: | | | | | | | | | | | | | |
Interest expense – Bridge/Exchange Note
|
| | | | (51,036) | | | | | | (133,138) | | |
Interest expense – Additional Bridge Note
|
| | | | (8,617) | | | | | | — | | |
Interest expense – M2B Note
|
| | | | (2,496) | | | | | | — | | |
Interest expense – Extension Note
|
| | | | (51,840) | | | | | | — | | |
Default interest expense – M2B Note
|
| | | | (20,296) | | | | | | — | | |
Initial fair value of Additional Bridge Note – additional draw
|
| | | | 3,851 | | | | | | — | | |
Change in fair value of Bridge Note – Bifurcated Derivative
|
| | | | — | | | | | | 34,758 | | |
Change in fair value of Extension Note – Bifurcated Derivative
|
| | | | 4 | | | | | | — | | |
Change in fair value of Additional Bridge Note
|
| | | | (2,133) | | | | | | — | | |
Change in fair value of Exchange Note
|
| | | | (192,801) | | | | | | — | | |
Change in fair value of ELOC Note
|
| | | | 13,956 | | | | | | — | | |
Change in fair value of PIPE Forward Contract Derivative
|
| | | | — | | | | | | (1,163,950) | | |
Interest earned on investments held in Trust Account
|
| | | | 17,853 | | | | | | 75,280 | | |
Total other expense
|
| | | | (293,555) | | | | | | (1,187,050) | | |
Loss before provision for income taxes
|
| | | | (967,817) | | | | | | (1,894,642) | | |
Provision for income taxes
|
| | | | — | | | | | | — | | |
Net loss
|
| | | $ | (967,817) | | | | | $ | (1,894,642) | | |
Basic and diluted weighted average shares outstanding
|
| | | | 3,603,966 | | | | | | 4,168,567 | | |
Basic and diluted net loss per share
|
| | | $ | (0.27) | | | | | $ | (0.45) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – December 31, 2023 (audited)
|
| | | | 3,489,000 | | | | | $ | 350 | | | | | $ | 550,246 | | | | | $ | (12,816,453) | | | | | $ | (12,265,857) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (967,817) | | | | | | (967,817) | | |
Balance – March 31, 2024 (unaudited)
|
| | | | 3,489,000 | | | | | $ | 350 | | | | | $ | 550,246 | | | | | $ | (13,784,270) | | | | | $ | (13,233,674) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – December 31, 2022 (audited)
|
| | | | 3,462,000 | | | | | $ | 347 | | | | | $ | 292,973 | | | | | $ | (7,719,916) | | | | | $ | (7,426,596) | | |
Issuance of 20,000 shares issued to settle legal
claim |
| | | | 20,000 | | | | | | 2 | | | | | | 214,198 | | | | | | — | | | | | | 214,200 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,894,642) | | | | | | (1,894,642) | | |
Balance – March 31, 2023 (unaudited)
|
| | | | 3,482,000 | | | | | $ | 349 | | | | | $ | 507,171 | | | | | $ | (9,614,558) | | | | | $ | (9,107,038) | | |
| | |
For the Three Months
Ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (967,817) | | | | | $ | (1,894,642) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on investments held in Trust Account
|
| | | | (17,853) | | | | | | (75,280) | | |
Initial fair value of Additional Bridge Note – additional draw
|
| | | | (3,851) | | | | | | — | | |
Change in fair value of Bridge Note – Bifurcated Derivative
|
| | | | — | | | | | | (34,758) | | |
Change in fair value of Extension Note – Bifurcated Derivative
|
| | | | (4) | | | | | | — | | |
Change in fair value of Exchange Note
|
| | | | 192,801 | | | | | | — | | |
Change in fair value of Additional Bridge Note
|
| | | | 2,133 | | | | | | — | | |
Change in fair value of ELOC
|
| | | | (13,956) | | | | | | — | | |
Change in fair value of PIPE Forward Contract Derivative
|
| | | | — | | | | | | 1,163,950 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | | — | | | | | | (52,500) | | |
Accounts payable and accrued expenses
|
| | | | 338,944 | | | | | | 419,424 | | |
Accrued interest expense – Exchange Note
|
| | | | 59,653 | | | | | | 133,139 | | |
Accrued interest expense – M2B Note
|
| | | | 2,496 | | | | | | — | | |
Accrued interest expense – Extension Note
|
| | | | 51,840 | | | | | | — | | |
Default Interest M2B
|
| | | | 20,296 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (335,318) | | | | | | (340,667) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Advances from related party
|
| | | | 474,929 | | | | | | — | | |
Proceeds from Additional Bridge Note – related party
|
| | | | 50,000 | | | | | | — | | |
Proceeds from promissory note
|
| | | | — | | | | | | 250,000 | | |
Repayment of M2B Note
|
| | | | (190,750) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 334,179 | | | | | | 250,000 | | |
Net Change in Cash
|
| | | | (1,139) | | | | | | (90,667) | | |
Cash – Beginning of period
|
| | | | 1,863 | | | | | | 106,998 | | |
Cash – End of period
|
| | | $ | 724 | | | | | $ | 16,331 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Common stock issued from legal settlement
|
| | | $ | — | | | | | $ | 214,200 | | |
|
Gross proceeds
|
| | | $ | 115,000,000 | | |
| Less: | | | | | | | |
|
Proceeds allocated to public warrants
|
| | | | (12,483,555) | | |
|
Common stock issuance costs
|
| | | | (6,923,767) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 21,132,322 | | |
|
Common stock subject to possible redemption, December 31, 2021
|
| | | | 116,725,000 | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 1,142,603 | | |
| Less: | | | | | | | |
|
Redemptions
|
| | | | (110,472,254) | | |
|
Common stock subject to possible redemption, December 31, 2022
|
| | | | 7,395,349 | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 682,671 | | |
| Less: | | | | | | | |
|
Redemptions
|
| | | | (6,796,063) | | |
|
Common stock subject to possible redemption, December 31, 2023 and March 31, 2024
|
| | | $ | 1,281,957 | | |
| | |
For the three months
ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
| | |
Common Stock
|
| |
Common Stock
|
| ||||||
Basic and diluted net loss per of common stock | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (967,817) | | | | | $ | (1,894,642) | | |
Denominator: | | | | | | | | | | | | | |
Basic and diluted weighted average common shares outstanding
|
| | | | 3,603,966 | | | | | | 4,168,567 | | |
Basic and diluted net loss per common share
|
| | | $ | (0.27) | | | | | $ | (0.45) | | |
| | |
Trading Securities
|
| |
Level
|
| |
Fair
Value |
| ||||||
March 31, 2024
|
| |
Money Market Funds
|
| | | | 1 | | | | | $ | 1,386,490 | | |
| | |
Trading Securities
|
| |
Level
|
| |
Fair
Value |
| ||||||
December 31, 2023
|
| |
Money Market Funds
|
| | | | 1 | | | | | $ | 1,368,637 | | |
March 31, 2024
|
| |
Fair Value
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Extension Note – Bifurcated Derivative
|
| | | $ | 22,868 | | | | | $ | — | | | | | $ | — | | | | | $ | 22,868 | | |
ELOC
|
| | | $ | 189,764 | | | | | $ | — | | | | | $ | — | | | | | $ | 189,764 | | |
Additional Bridge Note
|
| | | $ | 156,564 | | | | | $ | — | | | | | $ | — | | | | | $ | 156,564 | | |
Exchange Note
|
| | | $ | 2,814,359 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,814,359 | | |
December 31, 2023
|
| |
Fair Value
|
| |
(Level 1)
|
| |
(Level 2)
|
| |
(Level 3)
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Extension Note – Bifurcated Derivative
|
| | | $ | 22,872 | | | | | $ | — | | | | | $ | — | | | | | $ | 22,872 | | |
ELOC
|
| | | $ | 203,720 | | | | | $ | — | | | | | $ | — | | | | | $ | 203,720 | | |
Additional Bridge Note
|
| | | $ | 102,726 | | | | | $ | — | | | | | $ | — | | | | | $ | 102,726 | | |
Exchange Note
|
| | | $ | 2,621,558 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,621,558 | | |
| | |
March 31, 2024
|
| |
December 31, 2023
|
| ||||||
CCC bond rates
|
| | | | 13.07% | | | | | | 12.96% | | |
Expected term (years)
|
| | | | 0.25 | | | | | | 0.25 | | |
Probability of completing a business combination by June 30, 2024 and March 31, 2024, respectively
|
| | | | 80% | | | | | | 80% | | |
| | |
March 31, 2024
|
| |
December 31, 2023
|
| ||||||
Risk-free interest rate
|
| | | | 5.46% | | | | | | 5.40% | | |
Expected term (years)
|
| | | | 0.25 | | | | | | 0.25 | | |
Volatility
|
| | | | 95% | | | | | | 95% | | |
Stock price
|
| | | $ | 2.00 | | | | | $ | 2.00 | | |
Debt discount rate
|
| | | | 39.83% | | | | | | 39.7% | | |
Probability of early termination/repayment – business combination not completed
|
| | | | 20% | | | | | | 20% | | |
Probability of completing a business combination by March 31, 2024
|
| | | | —% | | | | | | 80% | | |
Probability of completing a business combination by June 30, 2024
|
| | | | 80% | | | | | | —% | | |
| | |
March 31, 2024
|
| |
December 31, 2023
|
| ||||||
Risk-free interest rate
|
| | | | 5.46% | | | | | | 5.21% | | |
Expected term (years)
|
| | | | 0.71 | | | | | | 0.71 | | |
Volatility
|
| | | | 110.1% | | | | | | 95% | | |
Stock price
|
| | | $ | 2.00 | | | | | $ | 2.00 | | |
Debt discount rate
|
| | | | 47.50% | | | | | | 47.54% | | |
Probability of completing a business combination by March 31, 2024
|
| | | | —% | | | | | | 80% | | |
Probability of completing a business combination by June 30, 2024
|
| | | | 80% | | | | | | —% | | |
| | |
March 31, 2024
|
| |
December 31, 2023
|
| ||||||
Risk-free interest rate
|
| | | | 4.45% | | | | | | 3.99% | | |
Expected term (years)
|
| | | | 3.00 | | | | | | 3.25 | | |
Volatility
|
| | | | 105.0% | | | | | | 96.4% | | |
Stock price
|
| | | $ | 2.00 | | | | | $ | 2.00 | | |
Probability of completing a business combination by March 31, 2024
|
| | | | —% | | | | | | 80% | | |
Probability of completing a business combination by June 30, 2024
|
| | | | 80% | | | | | | —% | | |
| | |
Extension Note
Bifurcated Derivative |
| |
Exchange
Note |
| |
Additional
Bridge Note |
| |
ELOC
|
| ||||||||||||
Fair value as of December 31, 2023
|
| | | $ | 22,872 | | | | | $ | 2,621,558 | | | | | $ | 102,726 | | | | | $ | 203,720 | | |
Initial value of Additional Bridge on January 25, 2024
|
| | | | — | | | | | | — | | | | | | 51,705 | | | | | | — | | |
Change in valuation inputs or other assumptions
|
| | | | (4) | | | | | | 192,801 | | | | | | 2,133 | | | | | | (13,956) | | |
Fair value as of March 31, 2024
|
| | | $ | 22,868 | | | | | $ | 2,814,359 | | | | | $ | 156,564 | | | | | $ | 189,764 | | |
| | |
PIPE
Forward Contract |
| |
Bridge Note
Bifurcated Derivative |
| ||||||
Fair value at December 31, 2022
|
| | | $ | 170,666 | | | | | $ | 364,711 | | |
Change in fair value
|
| | | | 1,163,950 | | | | | | (34,758) | | |
Fair value at March 31, 2023 (unaudited)
|
| | | $ | 1,334,616 | | | | | $ | 329,953 | | |
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