Nocturne Acquisition Corp (MBTC), a special-purpose acquisition company (SPAC), has experienced a significant reduction in its ordinary shares subject to possible redemption in 2022, according to its recent SEC report. This analysis presents an in-depth look into Nocturne’s financial status using available facts and statistics.
Table of Contents
Substantial Decline in Ordinary Shares Subject to Possible Redemption
As per the report, the amount of ordinary shares subject to possible redemption decreased from $116,157,607 as of January 1, 2022, to $21,577,042 as of March 31, 2023. This substantial decline marks an 80% reduction in these shares. The shift resulted from several factors, including redemption of ordinary shares and remeasurement of carrying value to redemption value.
Moreover, the Company has followed the guidance in ASC 820 for financial assets and liabilities that are re-measured and reported at fair value at each reporting period. It also applies ASC 820 for non-financial assets and liabilities that are re-measured and reported at fair value at least annually.
Income Tax Unchanged for Nocturne
Income tax remains unchanged for Nocturne, as it is an exempted Cayman Islands Company and is currently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As a result, the company’s tax provision for the periods presented remains at zero. It remains subject to income tax examination by major taxing authorities since inception, but is currently not aware of any issues that could result in significant payments, accruals, or material deviation from its position.
Earnings Per Share and Net Loss Calculation
The report notes that Nocturne follows ASC Topic 260 for accounting and disclosure requirements of “Earnings Per Share.” The net loss per ordinary share is calculated by dividing the net loss by the weighted average number of ordinary shares outstanding for the period. The remeasurement associated with the redeemable ordinary shares is excluded from loss per ordinary share, as the redemption amount approximates fair value. As of March 31, 2023, and 2022, the company did not have any dilutive securities or other contracts that could potentially be exercised or converted into ordinary shares, and then share in the losses of the company.
Impact on Nocturne’s Financial Position and Investor Considerations
The reduction of ordinary shares subject to possible redemption indicates a notable shift in Nocturne’s financial position. As SPACs focus on raising capital through initial public offerings to acquire target companies, understanding their financial standing is essential for investors. Nocturne’s significant decrease in ordinary shares subject to possible redemption in 2022 demonstrates a notable change in the company’s financial landscape.
It is essential for investors to keep an eye on the company’s financial performance and any potential developments in its search for a suitable business combination. The decline in ordinary shares subject to possible redemption highlights the importance of staying informed about the company’s financial status and the broader SPAC market. As with any investment, understanding the underlying financials and risks is crucial for making informed decisions. Nocturne’s recent SEC report provides valuable insights into its financial position and is an essential resource for investors and market observers.
Income Statement
Financials in millions USD. Fiscal year is January – December. source
| Year | 2022 | 2021 | |
|---|---|---|---|
| 0 | Selling, General & Admin | 2.05 | 0.72 |
| 1 | Operating Expenses | 2.05 | 0.72 |
| 2 | Operating Income | -2.05 | -0.72 |
| 3 | Other Expense / Income | -0.84 | -0.01 |
| 4 | Pretax Income | -1.21 | -0.71 |
| 5 | Net Income | -1.21 | -0.71 |
| 6 | Shares Outstanding (Basic) | 9 | 12 |
| 7 | Shares Outstanding (Diluted) | 9 | 12 |
| 8 | Shares Change | -23.14% | – |
| 9 | EPS (Basic) | -0.14 | -0.06 |
| 10 | EPS (Diluted) | -0.14 | -0.06 |
| 11 | Free Cash Flow Per Share | -0.14 | -0.05 |
| 12 | EBITDA | -1.21 | -0.71 |
| 13 | EBIT | -1.21 | -0.71 |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!