UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2023
For the quarterly period ended September 30, 2023
Or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number 001-39700

Kingswood Acquisition Corp.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	85-2432410
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

17 Battery Place, Room 625 New York, NY 10004	10004
(Address of Principal Executive Offices)	(Zip Code)

(212) 404-7002

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

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


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None

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

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

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


Large accelerated filer ☐			Accelerated filer ☐
Non-accelerated filer ☒			Smaller reporting company ☒
Emerging growth company ☒

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

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

As of ~~August~~November 3017, 2023, there were 3,~~203~~193,~~049~~083 shares of the registrant’s Class A common stock, par value $0.0001 per share, and 270,000 shares of the registrant’s Class B common stock, par value $0.0001 per share, outstanding as reported on the OTC Pink Marketplace.

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Kingswood Acquisition Corp.

Quarterly Report on Form 10-Q

For the Quarter Ended ~~June~~September 30, 2023

Table of Contents

		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Condensed Balance Sheets as of ~~June~~September 30, 2023 (Unaudited) and December 31, 2022	3

	Condensed Statements of Operations for the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022 (Unaudited)	4

	Condensed Statements of Changes in Stockholders’ Deficit for the three and ~~six~~nine months ended ~~June~~September 30, 2023 and 2022 (Unaudited)	5

	Condensed Statements of Cash Flows for the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022 (Unaudited)	6

	Notes to Unaudited Condensed Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2225

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2935

Item 4.	Controls and Procedures	2935

PART II. OTHER INFORMATION		3137

Item 1.	Legal Proceedings	3137

Item 1A.	Risk Factors	3137

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3137

Item 3.	Defaults Upon Senior Securities	3137

Item 4.	Mine Safety Disclosures	3137

Item 5.	Other Information	3137

Item 6.	Exhibits	3238

	Signatures	3339

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

KINGSWOOD ACQUISITION CORP.

CONDENSED BALANCE SHEETS


	~~June~~September 30, 2023		December 31, 2022
	(unaudited)
Assets
Cash	$	101,~~379~~509	$	277,511
Prepaid taxes		8465,~~850~~050		58,141
Total current assets		9566,~~229~~559		335,652

Trust Account		56,~~869~~134,~~087~~176		5,514,494
Total Assets	$	56,~~964~~200,~~316~~735	$	5,850,146

LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ DEFICIT
Accounts payable and accrued expenses	$	45,~~921~~614,~~396~~877	$	3,849,284
Convertible promissory note		1,~~357~~409,~~530~~942		1,351,662
Taxes payable		1018,~~924~~841		—
Deferred tax liability		—		31,151
Excise tax payable		1,642		—
Total current liabilities		67,~~291~~045,~~492~~302		5,232,097

Deferred underwriters’ compensation		4,025,000		4,025,000
Warrant liability		~~369~~217,~~287~~441		672,978
Total liabilities		1011,~~685~~287,~~779~~743		9,930,075

Commitments and Contingencies (Note 6)
Class A Common Stock subject to possible redemption, 494,050 and 508,456 shares at redemption value of $11.41 and $10.25, as of June 30, 2023 and December 31, 2022, respectively		5,634,765		5,211,674
Class A Common Stock subject to possible redemption, 494,049 and 508,456 shares at redemption value of $11.83 and $10.25, as of September 30, 2023 and December 31, 2022, respectively		5,842,408		5,211,674

Stockholders’ Deficit:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding		—		—
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 104,000 shares issued and outstanding, excluding 494,050 and 508,456 shares subject to possible redemption at June 30, 2023 and December 31, 2022, respectively		10		10
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 2,709,000 and 104,000 shares issued and outstanding, excluding 494,049 and 508,456 shares subject to possible redemption, at September 30, 2023 and December 31, 2022, respectively		271		10
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding		288		288
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 270,000 and 2,875,000 shares issued and outstanding, respectively		27		288
Additional paid-in capital		—		—
Accumulated deficit		(10,~~356~~929,~~526~~714)		(9,291,901)
Total stockholders’ deficit		(10,~~356~~929,~~228~~416)		(9,291,603)
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ DEFICIT	$	56,~~964~~200,~~316~~735	$	5,850,146

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

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KINGSWOOD ACQUISITION CORP.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three Months Ended				~~Six~~Nine Months Ended
	~~June~~September 30,				~~June~~September 30,
	2023		2022		2023		2022
Operating costs	$	~~636~~722,~~997~~094	$	1736,~~648,928~~011	$	1,~~230~~952,~~033~~127	$	23,~~525~~261,~~125~~136
Loss from operations		(~~636~~722,~~997~~094)		(1736,~~648,928~~011)		(1,~~230~~952,~~033~~127)		(23,~~525~~261,~~125~~136)

Other income:
Other income, net:
Interest income		5257,~~731~~389		67,~~041~~094		~~103~~161,~~637~~026		77144,~~563~~657
Change in fair value of convertible promissory note		23(52,~~370~~412)		3140,~~049~~888		(558,~~868~~280)		~~109~~250,~~291~~179
Change in fair value of warrant liabilities		151,~~845~~846		1759,~~062,919~~227		~~303~~455,~~691~~537		56,~~314~~073,~~593~~820
Total other income, net		~~227~~156,~~946~~823		1967,~~133,009~~209		~~401~~558,~~460~~283		56,~~501~~468,~~447~~656

Loss before provision for income taxes		(409,051)		(515,919)		(828,573)		2,976,322
(Loss) Income before provision for income taxes		(565,271)		231,198		(1,393,844)		3,207,520
(Provision) benefit for income taxes		(23,807)		(4,032)		6,886		(4,032)
Provision for income taxes		(7,917)		(1,209)		(1,031)		(5,241)
Net (loss) income	$	(~~432~~573,~~858~~188)	$	~~(519~~229,~~951)~~989	$	(~~821~~1,~~687~~394,875)	$	23,~~972~~202,~~290~~279

Basic and diluted weighted average shares outstanding, Class A common stock, subject to possible redemption		~~502~~494,~~440~~050		61,~~867~~463,~~657~~256		~~505~~501,~~432~~649		96,~~171~~573,~~032~~540
Basic and diluted net (loss) income per share	$	(0.1216)	$	(0.05)	$	(0.2439)	$	0.2434
Basic and diluted weighted average shares outstanding, Class A and Class B common stock not subject to redemption		2,979,000		2,979,000		2,979,000		2,979,000
Basic and diluted net (loss) income per share	$	(0.1217)	$	(0.05)	$	(0.2340)	$	0.2533

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

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KINGSWOOD ACQUISITION CORP.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(UNAUDITED)

THREE AND ~~SIX~~NINE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2023


	Class A Common Stock			Class B Common Stock			Additional		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Paid-in Capital		Deficit		Deficit
Balance- January 1, 2023	104,000	$	10	2,875,000	$	288	$	—	$	(9,291,901)	$	(9,291,603)

Remeasurement of Class A common stock subject to possible redemption	—		—	—		—		—		(241,296)		(241,296)

Net loss	—		—	—		—		—		(388,829)		(388,829)

Balance as of March 31, 2023	104,000	$	10	2,875,000	$	288	$	—	$	(9,922,026)	$	(9,921,728)

Excise tax payable	—		—	—		—		—		(1,642)		(1,642)

Net loss	—		—	—		—		—		(432,858)		(432,858)

Balance as of June 30, 2023	104,000	$	10	2,875,000	$	288	$	—	$	(10,356,526)	$	(10,356,228)

Conversion of Class B shares to Class A	2,605,000		261	(2,605,000)		(261)		—		—		—

Net loss	—		—	—		—		—		(573,188)		(573,188)

Balance as of September 30, 2023	2,709,000	$	271	270,000	$	27	$	—	$	(10,929,714)	$	(10,929,416)

THREE AND ~~SIX~~NINE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2022


	Class A Common Stock			Class B Common Stock				Additional		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount			Paid-in Capital	Deficit		Deficit

Balance- January 1, 2022	104,000	$	10	2,875,000	$	288	$	—	$	(10,256,949)	$	(10,256,651)

Remeasurement of Class A common stock subject to possible redemption	—		—	—		—		—		(10,506)		(10,506)

Net Income	—		—	—		—		—		3,492,241		3,492,241
Net income	—		—	—		—		—		3,492,241		3,492,241

Balance as of March 31, 2022	104,000	$	10	2,875,000	$	288	$	—	$	(6,775,214)	$	(6,774,916)

Remeasurement of Class A common stock subject to possible redemption	—		—	—		—		—		(63,930)		(63,930)

Net Loss	—		—	—		—		—		(519,951)		(519,951)
Net loss	—		—	—		—		—		(519,951)		(519,951)

Balance as of June 30, 2022	104,000	$	10	2,875,000	$	288	$	—	$	(7,359,095)	$	(7,358,797)

Remeasurement of Class A common stock subject to possible redemption	—		—	—		—		—		(156,459)		(156,459)

Net income	—		—	—		—		—		229,989		229,989

Balance as of September 30, 2022	104,000	$	10	2,875,000	$	288	$	—	$	(7,285,565)	$	(7,285,267)

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

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KINGSWOOD ACQUISITION CORP.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	For the
	~~Six~~Nine Months Ended
	~~June~~September 30,
	2023		2022
Cash flows from operating activities:
Net (loss) income	$	(~~821~~1,~~687~~394,875)	$	23,~~972~~202,~~290~~279
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Interest earned on Trust Account		(~~103~~161,~~580~~026)		(77144,~~536~~609)
Change in fair value of convertible note		558,~~868~~280		(~~109~~250,~~291~~179)
Change in fair value of warrant liabilities		(~~303~~455,~~691~~537)		(56,~~314~~073,~~593~~820)
Changes in working capital:
Deferred tax liability		(31,151)		—
Prepaid taxes		~~(15~~11,~~785)~~932		—
Prepaid expenses		—		70106,~~984~~329
Taxes payable		—		4(13,~~032~~759)
Accounts payable and accrued expenses		1,~~072~~765,~~112~~593		1,~~316~~721,~~532~~638
Net cash used in operating activities		(~~197~~206,~~914~~784)		(1,~~137~~452,~~582~~121)

Cash flows from investing activities:
Cash withdrawn from Trust Account in connection with redemption		164,~~297~~309		102,894,278
Investment in Trust – for extension from Wentworth		(~~346~~553,~~092~~747)		—
Investment in Trust – for extension from Sponsor		(69,218)		(60243,~~969~~876)
Net cash (used in) provided by investing activities		(~~251~~458,~~013~~656)		102,~~833~~650,~~309~~402

Cash flows from financing activities:
Redemption of Class A common stock subject to possible redemption		(164,~~297~~309)		(102,894,278)
Proceeds from convertible promissory note		—		~~500~~1,110,000
Trust Funding – for extension from Wentworth		~~346~~553,~~092~~747		—
Net cash provided by (used in) financing activities		~~181~~389,~~795~~438		(~~102~~101,~~394~~784,278)

Net change in cash		(~~267~~276,~~132~~002)		(~~698~~585,~~551~~997)
Cash, beginning of the period		277,511		838,478
Cash, end of period	$	101,~~379~~509	$	~~139~~252,~~927~~481
Supplemental disclosure of cash flow information:
Non-cash investing and financing transactions:
Accretion of Class A common stock subject to possible redemption	$	241,296	$	74230,~~438~~895
Excise tax payable	$	1,642	$	—
Conversion of Class B shares to Class A	$	261	$	—

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

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KINGSWOOD ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2023

(Unaudited)

Note 1 — Organization and Business Operations

Kingswood Acquisition Corp. (formerly Kingswood Global Holdings Inc.) (the “Company”) is a blank check company incorporated as a Delaware corporation on July 27, 2020. The Company was formed for the purpose of acquiring, merging with, engaging in capital stock exchange with, purchasing all or substantially all of the assets of, engaging in contractual arrangements, or engaging in any other similar business combination with a single operating entity, or one or more related or unrelated operating entities operating in any sector.

The Company’s sponsor is Kingswood Global Sponsor LLC (“Sponsor”), a Delaware limited liability company.

As of ~~June~~September 30, 2023, the Company had not commenced any operations. All activity for the period from July 27, 2020 (inception) through ~~June~~September 30, 2023, relates to the Company’s formation and initial public offering (“Public Offering” or “IPO”), and, since the completion of the Public Offering, searching for a target to consummate a business combination. The Company will not generate any operating revenues until after the completion of a business combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Public Offering and placed in the Trust Account (defined below) and recognizes changes in the fair value of warrant liabilities and ~~convertible~~Initial ~~promissory~~Convertible ~~notes~~Promissory Note (as defined below) as other income (expense). The Company has selected December 31 as its fiscal year end.

Public Offering

The Company completed the sale of 10,000,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units being offered, the “Public Shares”) at $10.00 per Unit on November 24, 2020. Simultaneous with the closing of the Public Offering, the Company completed the sale of 6,050,000 warrants (the “Private Warrants”), at a price of $1.00 per Private Warrant, which is discussed in Note 3.

In connection with the Public Offering, the underwriters were granted a 30-day option from the date of the prospectus for the Public Offering to purchase up to 1,500,000 additional units to cover over-allotments (the “Over-Allotment Units”), if any. Simultaneously with the closing of the Public Offering, the underwriters elected to exercise its over-allotment option in full, which, at $10.00 per Unit, generated gross proceeds of $15,000,000. The Company, in parallel, consummated the private placement of an additional 431,550 Private Warrants at a price of $1.00 per Private Warrant, which generated total additional gross proceeds of $431,550.

The Company had until November 24, 2022 to complete a business combination (the “Combination Period”). If the Company is unable to consummate its initial business combination within the Combination Period, the Company will: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii) to the Company’s obligations under the law of the state of Delaware to provide for claims of creditors and the requirements of other applicable law, and (iv) unless time for which the business combination is otherwise extended as further outlined below under the heading “Proxy Statement”. AsThe ~~discussed in Note 9, the~~ Combination Period has been extended until ~~November~~ February 24, ~~2023~~2024.

The Company’s ~~initial~~Initial stockholders agreed to waive their rights to liquidating distributions from the Trust Account with respect to any Founder Shares held by them if the Company fails to complete its initial business combination within the Combination Period. However, if the initial stockholders acquire public shares in or after the Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such public shares if the Company fails to complete a business combination during the Combination Period.

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Business Combination Agreement

On July 7, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Binah Capital Group, Inc., a Delaware corporation and wholly owned subsidiary of Kingswood (“Holdings”), Kingswood Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Holdings (“Kingswood Merger Sub”), Wentworth Merger Sub, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Holdings (“Wentworth Merger Sub”), and Wentworth Management Services LLC, a Delaware limited liability company (“Wentworth”). In addition, contemporaneously with the execution of the Merger Agreement, (i) certain holders of Wentworth’s membership units representing a majority of the Wentworth’s outstanding membership interests entered into a Wentworth Support Agreement pursuant to which such Wentworth members agreed, among other things, to approve the Merger Agreement and the transaction, (ii) the Company and ~~Company’s~~ Sponsor entered into a Founder Support Agreement pursuant to which certain holders of founder shares agreed to approve the Merger Agreement and the transaction and (iii) certain holders of Kingswood’s common stock, par value $0.0001 per share (“Kingswood Common Stock”) and Kingswood Private Placement Warrants entered into a Founder Support Agreement, pursuant to which, among other things, such holders of Kingswood Common Stock agreement to approve the Merger Agreement and the transaction.

~~Associated~~On ~~with~~March 20, 2023, the Company, Holdings, Kingswood Merger ~~Agreement~~Sub, Wentworth ~~has~~Merger ~~agreed~~Sub toand ~~pay~~Wentworth ~~for~~entered that certain ~~merger~~First ~~related~~Amendment ~~expenses~~to the Merger Agreement to, among other things, (i) amend and ~~additional~~restate ~~funding~~the definition of “Transaction Expenses Shortfall” in the ~~Trust~~Merger ~~Account~~Agreement to an amount equal to (x) the Outstanding Transaction Expenses (as defined in the Merger Agreement) minus (y) the Available Closing Date Cash (as defined in the Merger Agreement); (ii) amend and restate the condition precedent in Section 8.03(k) ~~During~~of the ~~period~~Merger ~~ended~~Agreement ~~June~~to 30require that Available Closing Date Cash be sufficient to cover an amount equal to the sum of $3,500,000 ~~2023~~and ~~Wentworth~~the ~~deposited~~Outstanding Transaction Expenses; and (iii) amend and restate the termination rights in Section 9.01(c)(B) to allow for the termination of the Merger Agreement if the Available Closing Date Cash is insufficient to cover the sum of $~~346~~3,~~092~~500,000 ~~into~~and the ~~Trust~~Outstanding ~~Account~~Transaction Expenses.

~~Proxy~~On ~~Statement~~September 13, 2023, the Company, Holdings, Kingswood Merger Sub, Wentworth Merger Sub and Wentworth entered that certain Second Amendment to the Merger Agreement further amending, modifying, and supplementing the Merger Agreement (as amended) to, among other things:

●

add definitions for (x) “Additional Sponsor Loans” to mean an additional $250,000 to be loaned to the Company by Sponsor or an Affiliate of Sponsor between the date of the Second Amendment and the Closing Date; and (y) “Additional Shares of Holdings Common Stock” to mean 1,100,000 shares of common stock of Holdings (“Holdings Common Stock”) to be issued to those certain holders of Continuing Company Units (as defined in the Merger Agreement) (in the amounts determined by Wentworth) and provided to the Company and Holdings in writing prior to the filing of the final amendment to the registration statement of which this proxy statement/prospectus forms a part;

●

amend the definition of “Company Merger Consideration” to mean (i) 12,000,000 shares of Holdings Common Stock at the Per Share Price (as defined in the Merger Agreement) (excluding any amount of warrants of Holdings issued or issuable to Continuing Company Unit Holders), plus (ii) the Additional Shares of Holdings Common Stock;

●

delete the definitions of “Converted Company Debt Amount” and “Minimum Company Share Amount” and references to such terms in the Merger Agreement;

●

amend and restate Section 2.09(d)(i) to provide for the forfeiture by Sponsor of 3,084,450 Private Warrants immediately prior to the effective time of the business combination;

●

amend Section 2.09(b) to provide for the escrow (or at Sponsor’s option, forfeiture) of 1,100,000 shares of Holdings Common Stock that would otherwise be issued to Sponsor in respect of its shares of common stock of the Company at closing and the release of such shares (or in the case of forfeiture, reissuance of an equal number of shares) to Sponsor if the VWAP of Holdings Common Stock exceeds $12.00 for 20 trading days within any 30-day trading period during the four-year period following the closing of the business combination;

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●

amend Section 2.11(d) to provide that (i) the Additional Shares of Holdings Common Stock will not be subject to the Lock-Up Agreement, and (ii) Craig Gould has the ability to release PPD Group, LCC and/or Wentworth Funding, LLC (or any of their ultimate beneficial owners who receive Holdings Common Stock) and the Holdings Common Stock owned by such holders from the obligations under the Lock-Up Agreement (as defined in the Merger Agreement) to the extent necessary to cause Holdings to satisfy the initial listing requirements of the National Exchange (as defined in the Merger Agreement) upon which the Holdings Common Stock has applied to be listed;

●

amend Section 2.16 to provide that if the closing does not occur then the Company shall promptly reimburse Wentworth the amount of such SPAC Extension Costs (as defined in the Merger Agreement) and if Closing does not occur due to the Company’s failure to satisfy any of the conditions precedent to closing that are reasonably with the control of the Company, the Company shall reimburse and pay to Wentworth up to $150,000 of costs and other expenses actually reimbursed by Wentworth to the prospective purchaser of the Series A Convertible Preferred Stock;

●

further amend Section 2.16 to provide Wentworth with the option to cause the outstanding Sponsor Loans and Additional Sponsor Loans to be repaid by Holdings at the closing either (A) through the issuance of shares of Holdings Common Stock of equal value, or (B) in immediately available funds, provided, however, that in case of clause (B) Sponsor will be required to surrender a number of shares of Holdings Common Stock of equal value otherwise issuable to it in connection with the closing of the business combination;

●

further amend Section 2.16 to require the Outstanding SPAC Expenses (as defined in the Merger Agreement) incurred by the Company in connection with any prior business combination not consummated by the Company (“Prior Expenses”) to be allocated to Sponsor and its equityholders on a pro-rata basis, and be repaid by (A) them in exchange for the issuance to such Sponsor and its equityholders a number of shares of Holdings Common Stock of equal value, or (B) Holdings in exchange for such Sponsor and its equityholders’ surrender of a number of shares of Holdings Common Stock of equal value;

●

further amend Section 2.16 to provide Wentworth the option (subject to the prior written consent of the Company) to pay any Outstanding Company Expenses (as defined in the Merger Agreement) owed to unrelated third parties prior to the closing, in exchange for the issuance of number of additional shares of Holdings Common Stock of equal value;

●

amend and restate the covenants and agreements in Section 7.10 to (A) require each of Wentworth, the Company and Holdings to use their commercially reasonable best efforts to enter into and consummate subscription agreements with investors relating to a private placement of shares in Wentworth, the Company and/or Holdings, and/or the entry into backstop arrangements with potential investors, and (B) acknowledge and agree that the proposed issuance and sale by Holdings at closing of up to 1,500,000 Series A Convertible Preferred Stock of Holdings on the terms set forth on the term sheet dated August 9, 2023 has been agreed upon by each of Wentworth, the Company and Holdings;

●

amend and restate the closing condition in Section 8.03(h) to require the Sponsor Loans and Additional Sponsor Loans be paid in full prior to or substantially concurrently with the closing of the business combination;

●

amend and restate the closing condition in Section 8.03(k) to require the Available Closing Date Cash not be less than $14,000,000;

●

amend and restate the closing condition in Section 8.03(l) to require the Company Merger Consideration (as defined in the Merger Agreement) to be issued prior to or substantially concurrently with the closing of the business combination;

●

amend the definition of “Termination Date” by replacing “June 30, 2023” with “November 24, 2023; and

●

amend and restate the termination rights in Section 9.01(c) to allow for the termination of the Merger Agreement if the conditions specified in Section 8.03(k) and 8.03(l) are not capable of being satisfied at the closing of the business combination.

Associated with the Merger Agreement, Wentworth has agreed to pay for certain merger related expenses and additional funding in the Trust Account. For the nine months ended September 30, 2023, Wentworth deposited $553,747 into the Trust Account.

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Proxy Statements

On May 18, 2022, the Company convened its special meeting in lieu of an annual meeting of stockholders virtually and voted in the affirmative on the proposal to extend the date by which the Company must complete its Business Combination from May 24, 2022 to November 24, 2022 (“Extension Amendment Proposal”). In connection with the Extension Amendment Proposal, shareholders holding 10,036,744 Public Shares exercised their right to redeem such Public Shares for a pro rata portion of the Trust Account. On May 20, 2022, the Company paid from the Trust Account an aggregate amount of $102,894,278, or approximately $10.25 per share, to redeeming shareholders. For each one-month extension, the Sponsor agreed to contribute, as a loan, to the Company $60,969 or approximately $0.04 per Public Share not redeemed in connection with the Extension Amendment. Contributions to the Trust Account in the amount of $60,969 were payable monthly through the Company’s extension date in November 2022.

On November 23, 2022, the Company convened its special meeting in lieu of an annual meeting of stockholders virtually and voted in the affirmative on the proposal to extend the date by which the Company must complete its initial business combination from November 24, 2022 to May 24, 2023 (the “Extension Amendment Proposal 2”). In connection with the Extension Amendment Proposal 2, shareholders holding 954,800 Public Shares exercised their right to redeem such Public Shares for a pro rata portion of the Trust Account. On November 21, 2022, the Company paid from the Trust Account an aggregate amount of $10,142,765, or approximately $10.62 per share, to redeeming shareholders. In connection with such extension and pursuant to the Merger Agreement, Wentworth deposited $69,218 per month into the Trust Account through the Company’s extension date in May 2023.

On May 18, 2023, the Company convened a special meeting of stockholders virtually and voted in the affirmative on the proposal to extend the date by which the Company must complete its initial Business Combination from May 24, 2023 to August 24, 2023 (the “Extension Amendment Proposal 3”). In connection with the Extension Amendment Proposal 3, shareholders holding 14,406 Public Shares exercised their right to redeem such Public Shares for a pro rata portion of the Trust Account. On May 23, 2023, the Company paid from the Trust Account an aggregate amount of $164,297, or approximately $11.40 per share, to redeeming shareholders. InWith ~~connection~~the ~~with~~redemption ~~such~~of ~~extension~~$164,297 ~~and~~from ~~pursuant~~the Trust Account, the Company may be subject to a new U.S. federal 1% excise tax equal to $1,642. The amount of the ~~Merger~~excise ~~Agreement~~tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, ~~Wentworth~~for ~~deposited~~purposes ~~$69~~of calculating the excise tax,~~218~~ ~~per~~repurchasing ~~month~~corporations ~~into~~are permitted to net the ~~Trust~~fair ~~Account~~market ~~through~~value of certain new stock issuances against the ~~Company’s~~fair ~~extension~~market ~~date~~value inof ~~August~~stock ~~2023~~repurchases during the same taxable year.

On August 17, 2023, the Company convened a special meeting of stockholders virtually and voted in the affirmative on the proposal to extend the date by which the Company must complete its initial Business Combination from August 24, 2023 to November 24, 2023 (the “Extension Amendment Proposal 4”). In connection with the Extension Amendment Proposal 4, a shareholder holding one Public Share exercised their right to redeem such Public Share for a pro rata portion of the Trust Account. On August 23, 2023, the Company paid from the Trust Account $12.23 to the redeeming shareholder. With the redemption of $~~164,297~~12.23 from the Trust Account, the Company may be subject to a new U.S. federal 1% excise tax equal to $~~1,642~~0.12. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year.

8On November 17, 2023, the Company held a special meeting at which the Company’s stockholders approved extending the date by which the Company must complete its initial Business Combination from November 24, 2023 to February 24, 2024. See Note 9 – Subsequent Events. In connection with the approval of the extension, stockholders elected to redeem 9,966 Public Share and exercised their right to redeem such Public Share for a pro rata portion of the Trust Account. The Company expects to pay an aggregate of approximately $12.46 from the Trust Account or $124,176 to the redeeming stockholders with respect to such redeemed Public Shares.

In connection with such extension and pursuant to the Merger Agreement, Wentworth agreed to deposit $69,218 per month into the Trust Account through the Company’s extension date in February 24, 2024.

Additionally, at such special meeting the Company’s stockholders approved further amendments to the Company’s second amended and restated certificate of incorporation to provide holders of the Company’s Class B common stock the right to convert their shares of Class B common stock into shares of Class A common stock on a one-to-one basis at any time and from time to time at the election of the holder. On August 17, 2023, Sponsor converted 2,605,000 shares of Class B common stock into shares of Class A common stock on a one-for-one basis. The holders of the newly converted shares of Class A common stock have agreed to carry over the transfer restrictions associated with the Founder Shares and have no rights to funds in the Trust Account.

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~~For~~Following the ~~three~~aforementioned ~~months~~conversion ~~ended~~and ~~June 30~~redemptions, ~~2023, Wentworth deposited $207,655 in~~ the ~~Trust~~Company ~~Account.~~had ~~For the six months ended June 30~~3, ~~2023~~203,049 ~~the~~shares ~~Sponsor~~of ~~deposited~~Class ~~$69,218~~A ~~and~~common ~~Wentworth~~stock ~~deposited~~and ~~$346~~270,~~092~~000 inshares ~~the~~of ~~Trust~~Class ~~Account~~B ~~for~~common anstock ~~aggregate~~issued ~~amount~~and ~~of $415,310~~outstanding.

~~Subsequently,~~For ~~on August 17, 2023,~~ the ~~Company~~three ~~convened~~months aended ~~special~~September ~~meeting~~30, of2023, ~~stockholders~~Wentworth ~~virtually~~deposited ~~and~~$207,655 ~~voted~~ in the ~~affirmative~~Trust onAccount. For the ~~proposal~~nine tomonths ~~extend~~ended ~~the~~September ~~date~~30, by2023, ~~which~~ the ~~Company~~Sponsor ~~must~~deposited ~~complete its initial business combination from August 24~~$69,218 ~~2023~~and toWentworth ~~November~~deposited 24$553,747 ~~2023~~in (the ~~“Extension~~Trust ~~Amendment~~Account ~~Proposal~~for ~~4”). See~~an ~~Note~~aggregate 9amount —of ~~Subsequent Events~~$622,965.

Liquidity, Capital Resources, and Going Concern

As of ~~June~~September 30, 2023, the Company had cash of $101,~~379~~509 and working capital deficit of $6,~~270~~978,~~189 excluding taxes payable from the Trust Account~~743.

On March 24, 2022, the Company’s and Sponsor ~~has~~entered into a convertible promissory note (the “Initial Convertible Promissory Note”) pursuant to which Sponsor agreed to loan the Company up to $1,500,000 in(such ~~the~~loans, ~~form of convertible promissory notes as may be required (~~the “Initial Working Capital Loans”). orThe “Initial Convertible Promissory Note~~”).~~ Ifprovides that, upon the ~~Company~~consummation ~~completes~~of a ~~business~~Business ~~combination~~Combination, the ~~Company~~Initial Working Capital Loans would ~~repay~~either be repaid, without interest, or, at the ~~Working~~Sponsor’s ~~Capital~~election, ~~Loans~~converted into additional Private Warrants at a price of $1.00 Inper ~~the~~Private ~~event~~Warrant. ~~that~~If a ~~business~~Business ~~combination~~Combination ~~does~~is not ~~close~~consummated, the Initial Convertible Promissory Note provides that the Company ~~may~~will use a portion of proceeds held outside the Trust Account to repay the Initial Working Capital Loans, but no proceeds held in the Trust Account would be used tofor ~~repay~~such ~~the Working Capital Loans~~purposes. Such Working Capital Loans are evidenced by a promissory note. The note will either be repaid upon consummation of a business combination, without interest, or, at the lender’s discretion, or converted upon consummation of a business combination into additional Private Warrants equal to $1.00 per Private Warrant. As of ~~June~~September 30, 2023 and December 31, 2022, $1,500,000, was drawn on the ~~convertible~~Initial ~~promissory~~Convertible ~~note~~Promissory Note, presented at its fair value of $1,~~357~~409,~~530~~942, and $1,351,662, respectively.

IfOn ~~the~~October ~~Company’s estimate of the costs of completing the Merger Agreement are less than the actual amount necessary to do so~~6, ~~the Company may have insufficient funds available to operate the business prior to a business combination. Moreover~~2023, ~~in addition to~~ the ~~access to the Working Capital Loans, the~~ Company ~~may~~and ~~need to obtain other financing either to complete a business combination or because~~ the ~~Company~~Sponsor ~~redeemed~~amended aand ~~significant~~restated ~~number of public shares upon consummation of a business combination, in which case~~ the ~~Company~~Initial ~~may~~Convertible ~~issue~~Promissory ~~additional~~Note securities or incur debt in connection with such business combination. Subject to compliance with applicable securities laws, the Company would only complete such financing simultaneously with the completion of a business combination. If the Company is unable to complete a business combination because the Company does not have sufficient funds available, the Company will be forced to cease operations and ~~liquidate~~entered ~~the~~into ~~Trust~~an ~~Account.~~additional Inconvertible ~~addition,~~promissory ~~following~~note a– ~~business~~see ~~combination,~~Note if9 ~~cash~~– onSubsequent ~~hand is insufficient, the Company may need to obtain additional financing in order to meet its obligations~~Events.

~~The~~If the Company’s ~~has~~estimate ~~until~~of ~~August~~the ~~24,~~costs ~~2023~~of tocompleting ~~consummate~~the aMerger ~~business~~Agreement ~~combination.~~are Itless isthan ~~uncertain~~the ~~that~~actual amount necessary to do so, the Company ~~will~~may behave ~~able~~insufficient funds available to ~~consummate~~operate athe business ~~combination~~prior byto ~~this~~a ~~time~~Business Combination. IfMoreover, ain ~~business~~addition ~~combination~~to isthe ~~not~~access ~~consummated~~to bythe ~~this~~Working ~~date~~Capital Loans, ~~there~~the ~~will~~Company bemay aneed ~~mandatory~~to ~~liquidation~~obtain ~~and~~other ~~subsequent~~financing ~~dissolution,~~either ~~unless~~to ~~time~~complete ~~for~~a ~~which~~Business Combination or because the ~~business~~Company ~~combination~~redeemed isa ~~otherwise~~significant ~~extended~~number asof ~~further~~public ~~outlined~~shares ~~above~~upon ~~under~~consummation of a business combination, in which case the ~~heading~~Company ~~“Proxy~~may ~~Statement”.~~issue ~~Management~~additional ~~has~~securities ~~determined~~or ~~that~~incur ~~the~~debt ~~mandatory~~in ~~liquidation,~~connection ~~should~~with asuch business combination. ~~not~~Subject ~~occur,~~to ~~and~~compliance ~~potential~~with ~~subsequent~~applicable ~~dissolution~~securities laws, asthe ~~well~~Company aswould ~~the~~only ~~Company’s~~complete ~~working~~such ~~capital~~financing ~~deficiency~~simultaneously ~~raises~~with ~~substantial~~the ~~doubt~~completion ~~about~~of a business combination. If the Company’s ~~ability~~is unable to ~~continue~~complete as a ~~going~~business ~~concern~~combination ~~for~~because athe ~~reasonable~~Company ~~period~~does ofnot ~~time,~~have ~~which~~sufficient isfunds ~~considered~~available, tothe Company will be ~~one~~forced ~~year~~to ~~from~~cease ~~the~~operations ~~issuance~~and ofliquidate the ~~financial~~Trust ~~statements~~Account. NoIn ~~adjustments~~addition, ~~have~~following ~~been~~a ~~made~~business tocombination, ~~the~~if ~~carrying~~cash ~~amounts~~on ofhand ~~assets~~is orinsufficient, ~~liabilities~~the ~~should~~Company wemay beneed ~~required~~ to ~~liquidate~~obtain ~~after~~additional ~~August~~financing ~~24,~~in ~~2023~~order to meet its obligations.

OnThe ~~August~~Company ~~17,~~has ~~2023~~until February 24, 2024 (as extended) to consummate a business combination. It is uncertain that the Company ~~convened~~will be able to consummate a ~~special~~business ~~meeting~~combination ofby ~~stockholders~~this ~~virtually~~time. If a business combination is not consummated by this date, there will be a mandatory liquidation and ~~voted~~subsequent todissolution, ~~among~~unless ~~other~~time ~~things~~for which the business combination is otherwise extended as further outlined above under the heading “Proxy Statement”. Management has determined that the mandatory liquidation, ~~extend~~should a business combination not occur, and potential subsequent dissolution, as well as the ~~date~~Company’s byworking ~~which~~capital deficiency raises substantial doubt about the Company’s ~~must~~ability ~~complete~~to ~~its~~continue ~~initial~~as ~~Business~~a ~~Combination~~going ~~from~~concern ~~August~~for 24a reasonable period of time, ~~2023~~which is considered to ~~November~~be ~~24,~~one ~~2023~~year (from the ~~“Extension~~issuance ~~Amendment~~of ~~Proposal~~the ~~4”)~~financial statements. ~~See~~ ~~Note~~No 9adjustments —have ~~Subsequent~~been ~~Events~~made to the carrying amounts of assets or liabilities should we be required to liquidate after February 24, 2024 (as extended).

On November 17, 2023, the Company held a special meeting at which the Company’s stockholders approved extending the date by which the Company must complete its initial Business Combination from November 24, 2023 to February 24, 2024. See Note 9 – Subsequent Events. In connection with the approval of the extension, stockholders elected to redeem 9,966 Public Share and exercised their right to redeem such Public Share for a pro rata portion of the Trust Account. The Company expects to pay an aggregate of approximately $12.46 from the Trust Account or $124,176 to the redeeming stockholders in with respect to such redeemed Public Shares.

Risks and Uncertainties

Management is continuing to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position and results of its operations, the specific impact is not readily determinable as of the date of these unaudited condensed financial statements. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. As a result of this action, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. Further, the impact of this action and related sanctions on the world economy are not determinable as of the date of these unaudited 11

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~~condensed~~The ~~financial~~continuing ~~statements~~military conflict between the Russian Federation the Ukraine and the military action between Hamas and Israel have created and are expected to create global economic consequences. The specific impact on the Company’s financial condition, results of operations, and cash flows is also not determinable as of the date of these unaudited condensed financial statements.

Consideration of Inflation Reduction Act Excise Tax

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax.

Any redemption or other repurchase that occurs after December 31, 2022, in connection with a business combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a business combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the business combination, extension or otherwise, (ii) the structure of a business combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with a business combination (or otherwise issued not in connection with a business combination but issued within the same taxable year of a business combination) and (iv) the content of regulations and other guidance from the Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a business combination and in the Company’s ability to complete a business combination.

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (the “SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2022.

Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement ~~declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised~~

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declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither classified as an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of the unaudited condensed financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. The more significant accounting estimates included in these unaudited condensed financial statements is the determination of fair value of the warrant liabilities and the ~~convertible~~Initial ~~promissory~~Convertible ~~note~~Promissory Note. Such estimates may be subject to change as more current information becomes available and accordingly, the actual results could differ significantly from those estimates.

Trust Account

At ~~June~~September 30, 2023, assets held in the Trust Account were held in a demand deposit account and at December 31, 2022, assets held in the Trust Account were held in a money market mutual funds. Demand deposit accounts and money market mutual funds are characterized as Level 1 investments within the fair value hierarchy under ASC 820 (as defined below). Gains and losses resulting from the change in fair value of assets held in Trust Account are included in interest income in the accompanying statements of operations. The estimated fair values of assets held in Trust Account are determined using available market information. At ~~June~~September 30, 2023 and December 31, 2022, the Company had $56,~~869~~134,~~087~~176 and $5,514,494 held in the Trust Account, respectively.

Prepaid taxes

Prepaid taxes at ~~June~~September 30, 2023 and December 31, 2022 include $4465,~~850~~050 and $58,141 with taxing authorities related to estimated tax payments.

Warrant Liabilities

The Company evaluated its Warrants, (which are discussed in Note 4 and Note 8) in accordance with ASC 815-40, “Derivatives and Hedging; Contracts in Entity’s Own Equity” (“ASC 815-40”) and concluded that a provision in the Warrant Agreement related to certain transfers, tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815-40, the Warrants are recorded as derivative liabilities on the Balance Sheet and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the statement of operations in the period of change.

Convertible Promissory Note

On March 24, 2022, the Company and Sponsor entered into the Initial Convertible Promissory Note pursuant to which Sponsor agreed to loan the Company up to $1,500,000. toThe beInitial ~~used~~Convertible ~~for~~Promissory aNote ~~portion~~provides ofthat, upon the ~~expenses~~consummation of ~~the~~a ~~Company.~~Business AtCombination, the ~~option~~Initial ofWorking ~~the~~Capital ~~Sponsor,~~Loans atwould ~~any~~either ~~time~~be onrepaid, orwithout ~~prior~~interest, toor, at the ~~maturity~~Sponsor’s ~~date~~election, ~~any unpaid principal amount outstanding may be~~ converted into ~~whole~~additional ~~warrants~~Private ~~(“Conversion~~ Warrants”) ~~to purchase Class A common stock~~ at a ~~conversion~~ price ~~equal~~of to $1.00 per ~~warrant~~Private Warrant. ~~The~~If ~~Company~~a ~~elected~~Business ~~the~~Combination ~~fair~~is ~~value~~not ~~option~~consummated, as the ~~reporting~~Initial ~~value of the~~ Convertible Promissory Note. Asprovides athat ~~result~~the ofCompany ~~applying~~will ~~the~~use ~~fair~~a ~~value~~portion ~~option,~~of ~~the~~proceeds ~~Company~~held ~~records~~outside ~~each~~the ~~draw~~Trust ~~with~~Account ato ~~gain~~repay orthe ~~loss~~Initial ~~recognized~~Working atCapital ~~issuance~~Loans, ~~and~~but ~~subsequent~~no ~~changes~~proceeds held in ~~fair~~the ~~value~~Trust ~~are~~Account ~~recorded~~would asbe ~~change~~used infor ~~fair~~such ~~value~~purposes. ofThe ~~convertible~~Company ~~promissory~~elected ~~note on~~ the ~~statement of operations. The~~ fair value isoption ~~based~~as onthe ~~prices~~reporting orvalue ~~valuation~~of ~~techniques~~the ~~that~~Initial ~~require~~Convertible ~~inputs~~Promissory ~~that~~Note. ~~are~~As ~~both~~a ~~unobservable~~result ~~and~~of ~~significant~~applying to the ~~overall~~ fair value ~~measurement.~~option, ~~These~~the ~~inputs~~

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Company records each draw with a gain or loss recognized at issuance, and subsequent changes in fair value are recorded as change in fair value of convertible promissory note on the statement of operations. The fair value is based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s assumptions a market participant would use in pricing the asset or liability. At ~~June~~September 30, 2023 and December 31, 2022, the Company ~~borrowed~~had drawn down $1,500,000 under the Initial Convertible Promissory Note.

On October 6, 2023, the Company and the Sponsor amended and restated the Initial Convertible Promissory Note and entered into an additional convertible promissory note – see Note 9 – Subsequent Events.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. At ~~June~~September 30, 2023 and December 31, 2022, the Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.

Fair Value of Financial Instruments

The Company follows the guidance in ASC Topic 820, “Fair Value Measurement”, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

The Fair Value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the Measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

See Note 8 for additional information on assets and liabilities measured at fair value.

Common Stock Subject to Possible Redemption

The Company accounts for its common stock subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity.” Redeemable common stock is classified as temporary equity. Non-redeemable common stock is classified as permanent equity. The Company’s common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, common stock subject to possible redemption is presented as temporary equity, outside of the stockholders’ deficit section of the Company’s balance sheets.

On May 18, 2022, the Company held a special meeting in lieu of an annual meeting at which the Company’s stockholders approved extending the date by which the Company had to complete a Business Combination from May 24, 2022 to November 24, 2022. In connection with the approval of the extension, stockholders elected to redeem an aggregate of 10,036,744 shares of class A common stock. As a result, an aggregate of $102,894,278 (or approximately $10.25 per share) was released from the Trust Account to pay such redeeming stockholders.

On November 23, 2022, the Company held a special meeting in lieu of an annual meeting at which the Company’s stockholders approved extending the date by which the Company had to complete a Business Combination from November 24, 2022 to May 24, 2023. In connection with the approval of the extension, stockholders elected to redeem an aggregate of 954,800 shares of class A common stock. As a result, an aggregate of $10,142,765 (or approximately $10.62 per share) was released from the Trust Account to pay such redeeming stockholders.14

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On ~~May~~November 1823, ~~2023~~2022, the Company ~~convened~~held a special meeting in lieu of an annual meeting at which the Company’s stockholders approved extending the date by which the Company had to complete a Business Combination from ~~May~~November 24, ~~2023~~2022 to ~~August~~May 24, 2023. In connection with the approval of the extension, stockholders elected to redeem an aggregate of 14954,~~406~~800 shares of class A common stock. As a result, an aggregate of $~~164~~10,~~297~~142,765 (or approximately $1110.4062 per share) was released from the Trust Account to pay such ~~stockholders.~~redeeming Accordingly, as of June 30, 2023 and December 31, 2022, 494,050 and 508,456 shares of class A common stock subject to possible redemption, respectively, are presented at redemption value as temporary equity, outside of the stockholders~~’ deficit section of the balance sheets~~.

On May 18, 2023, the Company convened a special meeting at which the Company’s stockholders approved extending the date by which the Company had to complete a Business Combination from May 24, 2023 to August 24, 2023. In connection with the approval of the extension, stockholders elected to redeem an aggregate of 14,406 shares of class A common stock. As a result, an aggregate of $164,297 (or approximately $11.40 per share) was released from the Trust Account to pay such stockholders.

Accordingly, as of September 30, 2023 and December 31, 2022, 494,049 and 508,456 shares of class A common stock subject to possible redemption, respectively, are presented at redemption value as temporary equity, outside of the stockholders’ deficit section of the balance sheets.

The Company recognizes changes in redemption value immediately as they occur. Immediately upon the closing of the IPO, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable common stock resulted in charges against additional paid-in capital and accumulated deficit.

At ~~June~~September 30, 2023 and December 31, 2022, the Class A common stock reflected in the accompanying balance sheets are reconciled in the following table.


	~~June~~September 30,		December 31,
	2023		2022

As of beginning of the period	$	5,211,674	$	117,861,531
Less:
Redemptions		(164,~~297~~309)		(113,037,043)
Plus:
Remeasurement adjustment of carrying value to redemption value (1)		~~587~~795,~~388~~043		387,186
Class A common stock subject to possible redemption	$	5,~~634~~842,~~765~~408	$	5,211,674

(1) ~~For~~The ~~the~~ period ended ~~June~~September 30, 2023, includes deposits of $~~346~~553,~~092~~747 in the Trust Account made by Wentworth (see Note 1). Such deposits are not included as a reduction to stockholders’ equity.

Stock Based Compensation

The Company complies with ASC 718 Compensation — Stock Compensation regarding founder shares acquired by directors of the Company at prices below fair value. The acquired shares shall vest upon the Company consummating an initial business combination (the “Vesting Date”). If prior to the Vesting Date, the director ceases to be a director, the shares will be forfeited and funds paid for the shares shall be refunded. The founder shares owned by the director (1) may not be sold or transferred, until one year after the consummation of a business combination, (2) not be entitled to redemption from the funds held in the Trust Account, or any liquidating distributions. The Company has until ~~November~~February 24, ~~2023~~2024 (as extended) to consummate a business combination, and if a business combination is not consummated, the Company will liquidate and the shares will become worthless.

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The shares were issued in October 2020 and November 2020 (“Grant Dates”), and the shares vest, not upon a fixed date, but upon consummation of an initial business combination. Since the approach in ASC 718 is to determine the fair value without regard to the vesting date, the Company has determined the valuation of the Class B shares as of the Grant Dates. The valuation resulted in a fair value of $6.19 per share as of the Grant Dates, or an aggregate of $1,671,300 for the 270,000 shares. The aggregate amount paid for the acquired shares was approximately $218,000. The excess fair value over the amount paid is $1,453,300, which is the amount of share-based compensation expense which the Company will recognize upon consummation of an initial business combination.

Income Taxes

The Company accounts for income taxes under ASC 740, “Income Taxes.” ASC 740, Income Taxes, requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the unaudited condensed financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of ~~June~~September 30, 2023 and December 31, 2022, the Company’s deferred tax asset had a full valuation allowance recorded against it. Our effective tax rate was (51.8240)% and (0.8)52% for the three months ended ~~June~~September 30, 2023 and 2022, respectively, and (0.8307)% and 0.116% for the ~~six~~nine months ended ~~June~~September 30, 2023 and 2022, respectively. The effective tax rate differs from the statutory tax rate of 21% for the three and ~~six~~nine months ended ~~June~~September 30, 2023 and 2022, due to changes in fair value in warrant liability, changes in fair value of the convertible notes liability, and the valuation allowance on the deferred tax assets.

13While ASC 740 identifies usage of an effective annual tax rate for purposes of an interim provision, it does allow for estimating individual elements in the current period if they are significant, unusual or infrequent. Computing the effective tax rate for the Company is complicated due to the potential impact of the Company’s change in fair value of warrants (or any other change in fair value of a complex financial instrument), the timing of any potential business combination expenses and the actual interest income that will be recognized during the year. The Company has taken a position as to the calculation of income tax expense in a current period based on ASC 740-270-25-3 which states, “If an entity is unable to estimate a part of its ordinary income (or loss) or the related tax (benefit) but is otherwise able to make a reasonable estimate, the tax (or benefit) applicable to the item that cannot be estimated shall be reported in the interim period in which the item is reported.” The Company believes its calculation to be a reliable estimate and allows it to properly take into account the usual elements that can impact its annualized book income and its impact on the effective tax rate. As such, the Company is computing its taxable income (loss) and associated income tax provision based on actual results through September 30, 2023.

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While ASC 740 identifies usage of an effective annual tax rate for purposes of an interim provision, it does allow for estimating individual elements in the current period if they are significant, unusual or infrequent. Computing the effective tax rate for the Company is complicated due to the potential impact of the Company’s change in fair value of warrants (or any other change in fair value of a complex financial instrument), the timing of any potential business combination expenses and the actual interest income that will be recognized during the year. The Company has taken a position as to the calculation of income tax expense in a current period based on ASC 740-270-25-3 which states, “If an entity is unable to estimate a part of its ordinary income (or loss) or the related tax (benefit) but is otherwise able to make a reasonable estimate, the tax (or benefit) applicable to the item that cannot be estimated shall be reported in the interim period in which the item is reported.” The Company believes its calculation to be a reliable estimate and allows it to properly take into account the usual elements that can impact its annualized book income and its impact on the effective tax rate. As such, the Company is computing its taxable income (loss) and associated income tax provision based on actual results through June 30, 2023.

The Company is taking the position that the deferred tax asset related to the unutilized net operating loss (“NOL”) should still be fully reserved. While interest rates have increased, the actual amount of interest income for tax purposes may differ significantly due to the timing of treasuries purchased, whether the Company invests in treasuries or potential unrealized interest income based on maturity. Additionally, the NOL utilization is limited to 80% so the approach and estimate used in the interim period is conservative in nature while reviewing the pertinent facts unique to the Company’s income tax situation.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of ~~June~~September 30, 2023 and December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income taxation by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

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Net ~~Income~~ (Loss) Income Per Common Share

The Company has two classes of stock, which are referred to as redeemable Class A common stock and non-redeemable Class A and Class B common stock. Earnings and losses are shared pro rata between the two classes of stock. The 15,184,550 potential common stock for outstanding warrants to purchase the Company’s stock were excluded from diluted ~~earnings~~(loss) income per share for the three and ~~six~~nine months ended ~~June~~September 30, 2023 and 2022 because the warrants are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net (loss) income per common stock is the same as basic net (loss) income per common stock for the periods. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net (loss) income per share for each class of common stock:


	Three Months Ended				~~Six~~Nine Months Ended
	~~June~~September 30,				~~June~~September 30,
	2023		2022		2023		2022

Net (loss) income available to Redeemable Class A	$	(6080,~~600~~246)	$	~~(363~~75,~~966)~~896	$	(~~123~~195,~~253~~283)	$	2,~~229~~209,~~218~~573
Basic and diluted weighted average shares outstanding, Class A common stock, subject to possible redemption		~~502~~494,~~440~~050		61,~~867~~463,~~657~~256		~~505~~501,~~432~~649		96,~~171~~573,~~032~~540
Basic and diluted net (loss) income per share, redeemable Class A common stock	$	(0.1216)	$	(0.05)	$	(0.2439)	$	0.2434
Net (loss) income available to non-redeemable Class A and Class B common stock		(~~372~~492,~~258~~942)		~~(155~~154,~~985)~~093		(~~698~~1,~~434~~199,592)		~~743~~992,~~072~~706
Basic and diluted weighted average shares outstanding, non-redeemable Class A and Class B common stock	$	2,979,000	$	2,979,000	$	2,979,000	$	2,979,000
Basic and diluted net (loss) income per share, Class A and Class B common stock	$	(0.12)	$	(0.05)	$	(0.23)	$	0.25
Basic and diluted net (loss) income per share, non-redeemable Class A and Class B common stock	$	(0.17)	$	0.05	$	(0.40)	$	0.33

Recent Accounting Pronouncements

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Since June 2016, the FASB issued clarifying updates to the new standard including changing the effective date for smaller reporting companies. The guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2016-13 on January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on its financial statements.

In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging --Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity-linked contracts to qualify for the derivative scope exception, and it simplifies the diluted earnings per share calculation in certain areas. The provisions of ASU 2020-06 are applicable to the Company for fiscal years beginning after December 15, 2023, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of ASU 2020-06 on its financial statements.

Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed financial statements.

Note 3 — Initial Public Offering

Pursuant to the Public Offering on November 24, 2020, the Company sold 10,000,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of Class A common stock, par value $0.0001 per share and three-fourths of one redeemable warrant (each, a “Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share. Each whole warrant will become exercisable on the later of the completion of the initial business combination or 12 months

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from the closing of the Public Offering and will expire five years after the completion of the initial business combination, or earlier upon redemption or liquidation.

Simultaneously with the closing of the Public Offering, the underwriters elected to exercise their full over-allotment option of 1,500,000 Units at a purchase price of $10.00 per Unit.

Upon closing the Public Offering and the sale of the Over-Allotment Units, a total of $117,848,550 ($10.25 per Unit) was placed in a U.S.-based trust account, with Continental Stock Transfer & Trust Company (“CST”) acting as trustee.

Warrants

Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a business combination and (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years from the completion of a business combination or earlier upon redemption or liquidation. The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of the initial business combination, the Company will use its best efforts to file with the SEC and have an effective registration statement covering the Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those Class A common stock until the warrants expire or are redeemed, as specified in the warrant agreement. If a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective by the 60th business day after the closing of the initial business combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if the Company’s Class A common stock are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elect, the Company will not be required to file or maintain in effect a registration statement, and in the event the Company does not so elect, the Company will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. The warrants will expire five years after the completion of a business combination or earlier upon redemption or liquidation.

The Company may call the Public Warrants for redemption:

●

in whole and not in part;

●

at a price of $0.01 per warrant;

●

upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and

●

if, and only if, the reported closing price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders.

If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis”, as described in the warrant agreement. Additionally, in no event will the Company be required to net cash settle any Warrants. If the Company is unable to complete the initial business combination within the combination period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless.

If (x) the Company issues additional common stock or equity-linked securities for capital raising purposes in connection with the closing of its initial business combination at an issue price or effective issue price of less than $9.20 per common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the initial stockholders or their affiliates, without taking into account any Founder Shares held by the initial stockholders or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial business combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its initial business combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115%

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of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

Note 4 — Private Placement

On November 24, 2020, simultaneously with the closing of the Public Offering and the closing of the exercise of the over-allotment option, the Sponsor and one of the Company’s directors purchased an aggregate of 6,481,550 Private Warrants at a price of $1.00 per Private Warrant, for an aggregate purchase price of $6,481,550, in a private placement. A portion of the proceeds from the private placement was added to the proceeds from the Public Offering held in the Trust Account.

The Private Warrants are identical to the Public Warrants sold in the Public Offering except that the Private Warrants, so long as they are held by the Sponsor or their permitted transferees, (i) will not be redeemable by the Company, (ii) may not (including the shares of Class A common stock issuable upon exercise of these warrants), subject to certain limited exceptions, be transferred, assigned or sold by the holders until 30 days after the completion of the Company’s initial business combination, (iii) may be exercised by the holders on a cashless basis and (iv) will be entitled to registration rights.

The Company’s Sponsor has agreed to: (i) waive its redemption rights with respect to its Founder Shares and public shares in connection with the completion of the Company’s initial business combination; (ii) waive its redemption rights with respect to its Founder Shares and public shares in connection with a stockholder vote to approve an amendment to the Company’s Charter (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial business combination or to redeem 100% of the Company’s public shares if the Company has not consummated an initial business combination within 18 months from the closing of the Public Offering or (B) with respect to any other provisions relating to stockholders’ rights or pre-initial business combination activity; (iii) waive its rights to liquidating distributions from the Trust Account with respect to its Founder Shares if the Company fails to consummate its initial business combination within 18 months from the closing of the Public Offering, although the Sponsor will be entitled to liquidating distributions from the Trust Account with respect to any public shares it holds if the Company fails to complete its initial business combination within the prescribed time frame; and (iv) vote any Founder Shares and any public shares purchased during or after the Public Offering (including in open-market and privately negotiated transactions) in favor of the Company’s initial business combination.

In accordance with the Second Amendment to the Merger Agreement, the Sponsor has agreed to forfeit 3,084,450 of Private Warrants immediately prior to the effective time of the Business Combination.

Note 5 — Related Party Transactions

Founder Shares

In August 2020, the Sponsor paid $25,000, or approximately $0.006 per share, to cover certain offering costs in consideration for 4,312,500 shares of Class B common stock, par value $0.0001 per share (the “Founder Shares”). On October 22, 2020 and November 3, 2020, the Sponsor surrendered an aggregate of 1,437,500 Founder Shares, which were cancelled, resulting in an aggregate of 2,875,000 Founder Shares outstanding and held by the Sponsor. Up to 375,000 Founder Shares were subject to forfeiture to the extent that the over-allotment option was not exercised in full by the underwriters. In connection with the underwriters’ full exercise of their over-allotment option on November 24, 2020, the 375,000 Founder Shares were no longer subject to forfeiture.

The initial stockholders have agreed, subject to limited exceptions, not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (i) one year after the completion of the initial business combination; or (ii) the date on which the Company completes a liquidation, merger, share exchange or other similar transaction after the initial business combination that results in all of the Company’s stockholders having the right to exchange their Class A common stock for cash, securities or other property; except to certain permitted transferees and under certain circumstances (the “lock-up”). Notwithstanding the foregoing, if (1) the closing price of Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial business combination or (2) if the Company consummates a transaction after the initial business combination which results in the Company’s stockholders having the right to exchange their shares for cash, securities or other property, the Founder Shares will be released from the lock-up.

In October 2020 and November 2020 (“Grant Dates”) the Sponsor transferred a total of 270,000 Founder Shares to the Company’s directors. The shares vest, not upon a fixed date, but upon consummation of an initial business combination. The Company has determined the valuation of the Class B shares as of the Grant Dates. The valuation resulted in a fair value of $6.19 ~~per share as of the Grant Dates, or an aggregate of $1,671,300 for the 270,000 shares. The aggregate amount paid for the transferred shares was~~

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In October 2020 and November 2020 (“Grant Dates”) the Sponsor transferred a total of 270,000 Founder Shares to the Company’s directors. The shares vest, not upon a fixed date, but upon consummation of an initial business combination. The Company has determined the valuation of the Class B shares as of the Grant Dates. The valuation resulted in a fair value of $6.19 per share as of the Grant Dates, or an aggregate of $1,671,300 for the 270,000 shares. The aggregate amount paid for the transferred shares was approximately $218,000. The excess fair value over the amount paid is $1,453,300, which is the amount of share-based compensation expense which the Company will recognize upon consummation of an initial business combination.

Convertible Promissory Note

In order to finance transaction costs in connection with a business combination, on March 24, 2022, the Company and Sponsor entered into the Initial Convertible Promissory Note pursuant to which Sponsor agreed to loan the Company up to $1,500,000. inThe ~~the~~Initial ~~form~~Convertible ofPromissory aNote ~~non-interest~~provides ~~bearing~~that, ~~convertible~~upon ~~promissory~~the ~~notes~~consummation toof ~~be used for~~ a ~~portion~~Business ofCombination, the ~~expenses~~Initial ~~of the Company (“~~Working Capital Loans~~”).~~ ~~If the Company completes a business combination, the Company~~ would ~~repay~~either ~~the~~be ~~Working~~repaid ~~Capital Loans~~ out of the proceeds of the Trust Account released to the Company~~. Otherwise~~, ~~the~~without ~~Working~~interest, ~~Capital~~or, ~~Loans~~at ~~would be repaid only out of funds held outside~~ the ~~Trust~~Sponsor's ~~Account. Additionally~~election, ~~the~~converted ~~Company may convert the unpaid principal balance~~ into ~~whole~~additional ~~warrants~~Private ~~(“Conversion~~ Warrants”) ~~to purchase Class A common stock~~ at a ~~conversion~~ price ~~equal~~of to $1.00 per ~~warrant~~Private Warrant. InIf ~~the event that~~ a ~~business~~Business ~~combination~~Combination ~~does~~is not ~~close~~consummated, the Initial Convertible Promissory Note provides that the Company ~~may~~will use a portion of ~~the~~proceeds ~~working capital~~ held outside the Trust Account to repay the Initial Working Capital Loans, but no proceeds ~~from~~held in the Trust Account would be used tofor ~~repay~~such ~~the Working Capital Loans~~purpose. As of ~~June~~September 30, 2023 and December 31, 2022, $1,500,000 was drawn on the convertible promissory note, presented at its fair value of $1,~~357~~409,~~530~~942 and $1,351,662 on the accompanying balance sheets, respectively.

On October 6, 2023, the Company and the Sponsor amended and restated the Initial Convertible Promissory Note and entered into an additional convertible promissory note - see Note 9 - Subsequent Events.

In accordance with the Second Amendment to the Merger Agreement, Wentworth has the option to cause the outstanding Initial Convertible Promissory Note and the additional convertible promissory note to be repaid by at the closing either (A) through the issuance of shares of Company Common Stock of equal value, or (B) in immediately available funds, provided, however, that in case of clause (B) Sponsor will be required to surrender a number of shares of Company Common Stock of equal value otherwise issuable to it in connection with the closing of the business combination;

Administrative Service Fee

Commencing on the date of the final prospectus for the Public Offering, the Company agreed to pay the Sponsor up to $10,000 per month for office space, secretarial and administrative services as needed. Upon completion of the initial Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees. The Company incurred and accrued $0 ~~and $0~~ of administrative service fees as of ~~June~~September 30, 2023 and 2022, respectively. The Sponsor has forgone charging the Company for the administrative service fee and during the year ended December 31, 2022, the Sponsor agreed to forgive the administrative service fee in the amount of $1,667, and accordingly, at ~~June~~September 30, 2023 and December 31, 2022, no amounts were due for this administrative service fee.

Note 6 — Commitments

Registration Rights

The holders of (i) the Founder Shares, which were issued in a private placement prior to the closing of the Public Offering, (ii) Private Warrants, which were issued in a private placement simultaneously with the closing of the Public Offering, and the common stock underlying such Private Warrants and (iii) Private Warrants that may be issued upon conversion of Working Capital Loans (and the securities underlying such securities) have registration rights to require the Company to register a sale of any of its securities held by them pursuant to a registration rights agreement. These holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities for sale under the Securities Act. In addition, these holders will have “piggy-back” registration rights to include their securities in other registration statements filed by the Company, subject to certain limitations. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The Company granted the underwriters a 30-day option from the date of the Public Offering to purchase up to 1,500,000 additional Units to cover over-allotments, if any, at $10.00 per Unit. Simultaneously with the closing of the Public Offering on November 24, ~~2020, the underwriters fully exercised the over-allotment option to purchase 1,500,000 Units, generating an aggregate of gross proceeds of $15,000,000.~~

A deferred underwriting discount of $0.35 per Unit, or $4.02 million in the aggregate, will be payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes an initial business combination, subject to the terms of the underwriting agreement.20

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2020, the underwriters fully exercised the over-allotment option to purchase 1,500,000 Units, generating an aggregate of gross proceeds of $15,000,000.

Business Combination

In connection with the initial Business Combination, the Company engaged Oppenheimer & Co. Inc. (“Oppenheimer”) and SPAC Advisory Partners LLC (“SAP”) to act as its financial advisors, each will be entitled to customary fees in such capacity, with payment due at, and conditioned upon, the closing of the Business Combination. Oppenheimer & Co. Inc. will be due 3.5% of the value of the Company’s IPO or $4,025,000 upon consummation of the Company’s initial Business Combination. This amount is reported on the condensed balance sheet as deferred underwriters’ compensation. The Company’s management and SAP are currently negotiating the fees due SAP at closing, if any, for their services rendered in the consummating the proposed Business Combination.

Business Combination Closing Costs

The Merger Agreement provides that if the closing does not occur then the Company shall promptly reimburse Wentworth the amount of such SPAC Extension Costs (as defined in the Merger Agreement) and if Closing does not occur due to the Company’s failure to satisfy any of the conditions precedent to closing that are reasonably with the control of the Company, the Company shall reimburse and pay to Wentworth up to $150,000 of costs and other expenses actually reimbursed by Wentworth to the prospective purchaser of the Series A Convertible Preferred Stock.

Note 7 — Stockholders’ Deficit

~~Preferred~~On ~~Stock —~~August ~~The~~17, ~~Company~~2023, isSponsor ~~authorized~~converted ~~to issue 1~~2,~~000~~605,000 shares of ~~preferred~~Class B common stock ~~with~~into shares of Class A common stock on a ~~par~~one-for-one ~~value~~basis. The holders of ~~$0.0001~~the ~~per~~newly ~~share~~converted ~~and~~shares ~~with~~of ~~such~~Class ~~designations,~~A ~~voting~~common ~~and~~stock ~~other~~have ~~rights~~agreed ~~and~~to ~~preferences~~carry asover ~~may~~the betransfer ~~determined~~restrictions ~~from~~associated ~~time~~with the Founder Shares and have no rights to ~~time~~funds byin the ~~Company’s~~Trust ~~board~~Account. ofAfter ~~directors.~~the Atconversion ~~June~~and 30redemptions, ~~2023~~there ~~and~~are ~~December 31~~3,203,049 ~~2022~~and 270,000 ~~there~~Class ~~were~~A nocommon ~~preferred~~and ~~shares~~Class B common stock, respectively, issued orand outstanding.

~~Class A~~Preferred ~~Common~~ Stock — The Company is authorized to issue ~~100~~1,000,000 shares of ~~Class A~~preferred ~~common~~ stock with a par value of $0.0001 per share. ~~Holders~~and ~~are~~with ~~entitled~~such todesignations, ~~one~~voting ~~vote~~and ~~for~~other ~~each~~rights ~~share~~and ofpreferences ~~Class~~as Amay ~~common~~be ~~stock~~determined from time to time by the Company’s board of directors. At ~~June~~September 30, 2023 and December 31, 2022, there were ~~494,050~~no ~~and~~preferred ~~508,456~~ shares ~~of Class A common stock~~ issued ~~and outstanding subject to possible redemption, and 104,000 and 104,000 shares of Class A common stock not subject to redemption held by the underwriters and/~~or ~~its designees, respectively~~outstanding.

Class BA Common Stock — The Company is authorized to issue 10100,000,000 shares of Class BA common stock with a par value of $0.0001 per share. Holders are entitled to one vote for each share of Class B A common stock. ~~There~~At September 30, 2023 and December 31, 2022, there were 2494,~~875~~049 and 508,~~000~~456 shares of Class BA common stock issued and outstanding atsubject ~~June~~to 30possible redemption, ~~2023~~and 2,709,000 and ~~December~~104,000 31shares of Class A common stock not subject to redemption held by the sponsor, ~~2022.~~the underwriters and/or its designees, respectively.

Class B Common Stock — The Company is authorized to issue 10,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders are entitled to one vote for each share of Class B common stock. There were 270,000 and 2,875,000 shares of Class B common stock issued and outstanding at September 30, 2023 and December 31, 2022.

Holders of the Class A common stock and holders of the Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders, except as required by law or stock exchange rule.

The Class B common stock will automatically convert into Class A common stock on the first business day following the consummation of the initial business combination at a ratio such that the number of Class A common stock issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of (a) the total number of all shares of Class A common stock issued and outstanding (including any shares of Class A common stock issued pursuant to the underwriter’s over-allotment option) upon the consummation of the Public Offering, plus (b) the sum of all shares of Class A common stock issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the consummation of the initial business combination(including any shares of Class A common stock issued pursuant to a forward purchase agreement), excluding any shares of Class A common stock or equity-linked securities or rights exercisable for or convertible into Class A common stock issued, deemed issued, or to be issued, to any seller in the initial business combination and any private shares issued to the Sponsor, members of the Company’s management team or any of their affiliates upon conversion of Working Capital Loans, minus (c) the number of shares of Class A common stock redeemed in connection with the initial business combination, provided that such conversion of shares of Class B common stock shall never be less than the initial conversion ratio. In no event will the Class B common stock convert into Class A common stock at a rate of less than one-to one.

~~Note 8 — Recurring Fair Value Measurements~~21

The fair value of the Company’s certain assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet. The fair values of cash and cash equivalents, prepaid expenses, accounts payable and accrued expenses, due to related parties are estimated to approximate the carrying values as of June 30, 2023 and December 31, 2022 due to the short maturities of such instruments.

Since all of the Company’s permitted assets in the Trust Account consist of demand deposits at June 30, 2023 and U.S. Money Market funds at December 31, 2022, fair values of these assets are determined utilizing quoted prices (unadjusted) in active markets for identical assets. The Company’s warrant liability for the Private Warrants and Convertible Promissory Note is based on valuation models utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair values. The Company’s warrant liability for the Public Warrants is based on quoted prices in an active market for identical assets.

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~~The~~issued ~~following~~pursuant ~~table~~to ~~sets~~a ~~forth~~forward bypurchase ~~level~~agreement), ~~within~~excluding any shares of Class A common stock or equity-linked securities or rights exercisable for or convertible into Class A common stock issued, deemed issued, or to be issued, to any seller in the ~~fair~~initial ~~value~~business ~~hierarchy~~combination and any private shares issued to the Sponsor, members of the Company’s ~~financial~~management ~~assets~~team ~~and~~or ~~liabilities~~any of their affiliates upon conversion of Working Capital Loans, minus (c) the number of shares of Class A common stock redeemed in connection with the initial business combination, provided that ~~were~~such ~~accounted~~conversion ~~for~~of atshares ~~fair~~of ~~value~~Class B oncommon astock ~~recurring~~shall ~~basis~~never be less than the initial conversion ratio. In no event will the Class B common stock convert into Class A common stock at ~~June~~a ~~30,~~rate ~~2023~~of ~~and~~less ~~December~~than ~~31,~~one-to ~~2022:~~one.

Note 8 — Recurring Fair Value Measurements

The fair value of the Company’s certain assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet. The fair values of cash and cash equivalents, prepaid expenses, accounts payable and accrued expenses, due to related parties are estimated to approximate the carrying values as of September 30, 2023 and December 31, 2022 due to the short maturities of such instruments.

Since all of the Company’s permitted assets in the Trust Account consist of demand deposits at September 30, 2023 and U.S. Money Market funds at December 31, 2022, fair values of these assets are determined utilizing quoted prices (unadjusted) in active markets for identical assets. The Company’s warrant liability for the Private Warrants and Convertible Promissory Note is based on valuation models utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair values. The Company’s warrant liability for the Public Warrants is based on quoted prices in an active market for identical assets.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at September 30, 2023 and December 31, 2022:


June 30, 2023	Level 1		Level 2		Level 3
September 30, 2023	Level 1		Level 2		Level 3
Assets:
Demand deposits held in Trust Account	$	56,~~869~~134,~~087~~176	$	—	$	—

Liabilities:
Convertible Promissory Note	$	—	$	—	$	1,~~357~~409,~~530~~942
Private Placement Warrants	$	—	$	—	$	~~196~~131,~~787~~191
Public Warrants	$	~~172~~86,~~500~~250	$	—	$	—


December 31, 2022	Level 1		Level 2		Level 3
Assets:
U.S. Money Market Mutual Funds held in Trust Account	$	5,514,494	$	—	$	—

Liabilities:
Convertible Promissory Note	$	—	$	—	$	1,351,662
Private Placement Warrants	$	—	$	—	$	327,978
Public Warrants	$	345,000	$	—	$	—

Warrants and Convertible Promissory Note

The Warrants and Convertible Promissory Note are accounted for as liabilities in accordance with ASC 815-40 on the balance sheets. The warrant liabilities and Convertible Promissory Note are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities and convertible promissory note in the statement of operations.

Measurement

On ~~June~~September 30, 2023 and December 31, 2022, the Company’s Public Warrants were trading in an active market and valuation of the Company’s Public Warrant liability was determined based upon the closing market price at ~~June~~September 30, 2023 and December 31, 2022, respectively.

~~On June 30, 2023 and December 31, 2022, the Company used a modified Black-Scholes model to value the Private Warrants.~~ 22

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On September 30, 2023 and December 31, 2022, the Company used a modified Black-Scholes model to value the Private Warrants.

The key inputs into the modified Black Scholes option pricing model for the Private Placement Warrants were as follows:


	~~June~~September 30,			December 31,
Input	2023			2022
Stock price	$	1112.4902		$	10.02
Exercise price	$	11.50		$	11.50
Term (years)		5.0			5.0
Risk free rate		4.136	%		3.99	%
Dividend yield		—	%		—	%
Volatility		11.2	%		1.8	%

On ~~June~~September 30, 2023 and December 31, 2022, the Company used a yield-to-maturity bond pricing model to value the Convertible Promissory Note.

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The key inputs into the pricing model for the Convertible Promissory Note was as follows:


	~~June~~September 30,			December 31,
Input	2023			2022
Amount due at maturity	$	1,500,000		$	1,500,000
Term (years)		0.415			0.539
Probability of a successful business combination		9295.50	%		92.5	%
Present value factor		0.~~9742~~9894			0.9742
Risk free rate		5.59	%		4.62	%
Volatility		11.2	%		1.8	%

The Company’s use of models required the use of subjective assumptions:

●

The risk-free interest rate assumption was based on the five-year U.S. Treasury rate, which was commensurate with the contractual term of the Private Warrants and Convertible Promissory Note. An increase in the risk-free interest rate, in isolation, would result in an increase in the fair value measurement of the Private Warrant and Convertible Promissory Note and vice versa.

●

An increase in the expected term, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and Convertible Promissory Note and vice versa.

●

The volatility assumption was based on the implied volatility from a set of comparable publicly-traded warrants as determined based on the size and proximity of other similar business combinations. An increase in the expected volatility, in isolation, would result in an increase in the fair value measurement of the Private Warrant and Convertible Promissory Note and vice versa.

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our financial instruments classified as Level 3:


	Level 3
Fair value as of December 31, 2022	$	1,679,640
Change in fair value of Convertible Promissory Note		29,238
Change in fair value - Private Warrant Liabilities		(65,596)
Fair value as of March 31, 2023	$	1,643,282
Change in fair value of Convertible Promissory Note		(23,370)
Change in fair value - Private Warrant Liabilities		(65,595)
Fair value as of June 30, 2023	$	1,554,317
Change in fair value of Convertible Promissory Note		52,412
Change in fair value - Private Warrant Liabilities		(65,596)
Fair value as of September 30, 2023	$	1,541,133

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Note 9 — Subsequent Events

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the ~~unaudited condensed~~ financial statements were issued. Based upon this review, the Company ~~has~~did ~~identified~~not identify any subsequent events, other than noted below, that would have required adjustment or disclosure in the ~~following:~~financial statements.

On ~~August~~October 176, 2023, the Company ~~convened~~and aSponsor ~~special~~entered ~~meeting~~into ofthat ~~stockholders~~Amended ~~virtually~~and atRestated ~~which~~Convertible ~~the~~Promissory ~~Company’s~~Note ~~stockholders~~(the ~~approved~~“A&R ~~extending~~Convertible ~~the~~Promissory ~~date~~Note”), by which ~~the~~amends ~~Company~~and ~~must~~restates ~~complete~~the aInitial ~~Business~~Convertible ~~Combination~~Promissory ~~from~~Note ~~August~~to 24provide that, ~~2023~~among toother ~~November 24~~things, ~~2023~~upon (the ~~“Extension~~consummation ~~Amendment~~of ~~Proposal~~a ~~4”). In~~Business ~~connection~~Combination ~~with~~, the ~~Extension~~Initial ~~Amendment~~Working ~~Proposal~~Capital 4,Loans awould ~~shareholder~~either ~~holding~~be ~~one~~repaid, ~~Public~~or ~~Share~~at ~~exercised~~Wentworth’s ~~its~~election, ~~right~~converted tointo ~~redeem~~a ~~such~~number ~~Public~~of ~~Share~~shares ~~for~~of aClass ~~pro~~A ~~rata~~common ~~portion~~stock of the ~~Trust Account. The~~ Company ~~expects~~(or tothe ~~pay~~shares ~~from~~or ~~the~~other ~~Trust~~securities ~~Account~~of ananother ~~aggregate~~entity ~~amount~~for ofor ~~$12.23~~into towhich the ~~redeeming~~Class ~~shareholder.~~A Incommon ~~connection~~stock ~~with~~of ~~such~~the ~~extension~~Company ~~and~~are ~~pursuant~~exchangeable toor ~~the~~convertible ~~Merger~~in ~~Agreement,~~connection ~~Wentworth~~with ~~has~~a ~~agreed~~Business toCombination) ~~deposit~~equal ~~$69,218~~to ~~per~~the ~~month~~then ~~into~~aggregate ~~the~~principal ~~Trust~~amount ~~Account~~plus ~~through~~accrued ~~the~~and ~~Company’s~~unpaid ~~extension~~interests ~~date~~outstanding, individed ~~November~~by ~~2023~~$10.00.

~~Additionally,~~Also aton ~~such~~October ~~special~~6, ~~meeting~~2023, the Company’s ~~stockholders~~and ~~approved~~Sponsor entered into an additional ~~amendments~~convertible promissory note (the “Additional Convertible Promissory Note”) pursuant to which Sponsor agreed to loan the Company’s ~~second~~up ~~amended~~to ~~and~~$250,000 ~~restated~~(such ~~certificate~~loans, ofthe ~~incorporation~~“Additional toWorking ~~provide~~Capital ~~holders~~Loans”). ofThe Additional Convertible Promissory Note provided that, upon the ~~Company’s~~consummation ~~Class~~of Ba ~~common~~Business ~~stock~~Combination, the ~~right~~Additional toWorking ~~convert~~Capital ~~their~~Loans ~~shares~~would ofeither ~~Class~~be Brepaid, ~~common~~or, ~~stock~~at the Sponsor’s election, converted into a number of shares of Class A common stock onof athe ~~one-to-one~~Company ~~basis~~(or atthe ~~any~~shares ~~time~~or ~~and~~other ~~from~~securities ~~time~~of toanother ~~time~~entity atfor or into which the ~~election~~Class A common stock of the ~~holder.~~Company Onare ~~August~~exchangeable ~~17,~~or ~~2023,~~convertible ~~Sponsor~~in ~~notified~~connection ~~CST~~with ~~that~~a itBusiness ~~was~~Combination) ~~electing~~equal to ~~convert~~the ~~approximately~~then ~~2,605,000~~aggregate ~~shares~~principal ofamount ~~Class~~plus Baccrued ~~common~~and ~~stock~~unpaid ~~into~~interests ~~shares~~outstanding, ofdivided ~~Class~~by A$10.00. ~~common~~If ~~stock on~~ a ~~one-for-one~~Business ~~basis.~~Combination ~~The~~is ~~holders~~not ofconsummated, the ~~newly~~Additional ~~converted~~Convertible ~~shares~~Promissory ofNote ~~Class~~provides Athat ~~common~~the ~~stock~~Company ~~have~~will ~~agreed~~use toa ~~carry~~portion ~~over~~of proceeds held outside the ~~transfer~~Trust ~~restrictions~~Account ~~associated~~to ~~with~~repay the ~~Founder~~Additional ~~Shares~~Working ~~and~~Capital ~~have~~Loans, but no ~~rights~~proceeds toheld ~~funds~~ in the Trust Account. ~~After~~would ~~the~~be ~~conversion,~~used ~~there~~for ~~are~~such ~~3,203,049~~purposes. ~~and~~As ~~270,000~~of ~~Class~~October A25, ~~common~~2023, ~~and~~$250,000 ~~Class~~was Bdrawn ~~common~~on ~~stock,~~the ~~respectively,~~Additional ~~issued~~Convertible ~~and~~Promissory ~~outstanding~~Note.

On November 17, 2023, the Company held a special meeting at which the Company’s stockholders approved extending the date by which the Company must complete its initial Business Combination from November 24, 2023 to February 24, 2024. In connection with the approval of the extension, stockholders elected to redeem 9,966 Public Share and exercised their right to redeem such Public Share for a pro rata portion of the Trust Account. The Company expects to pay an aggregate of approximately $12.46 from the Trust Account or $124,176 to the redeeming stockholders with respect to such redeemed Public Shares.

Additionally, with the redemption of $124,176 from the Trust Account, the Company expects to be subject to an additional excise tax equal to $1,272 or 1% of the fair market value of the redemptions.

In November 2023, Wentworth deposited $69,218 into the Trust Account and thus extending the Combination Period to December 24, 2023.

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

References in this report (the “Quarterly Report”) to “we,” “us” or the “Company” refer to Kingswood Acquisition Corp. References to our “management” or our “management team” refer to our officers and directors, and references to the “Sponsor” refer to Kingswood Global Sponsor LLC. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements other than statements of historical fact included in this quarterly report on Form 10-Q including statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s Annual Report on Form 10-K for the period ended December 31, 2022 filed with the SEC on April 17, 2023. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Overview

We are a blank check company incorporated as a Delaware corporation on July 27, 2020 and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Simultaneously with the consummation of the Public Offering, we consummated the private sale of an aggregate of 6,481,550 warrants, each exercisable to purchase one share of Class A common stock, par value $0.0001 per share (“Class A common stock”) at $11.50 per share, to Kingswood Global Sponsor LLC, our sponsor, and one of the Company’s directors at a price of $1.00 per warrant, generating gross proceeds, before expenses, of approximately $6,481,550 (the “Private Placement”). We intend to consummate an initial business combination using cash from the proceeds of our initial public offering (the “Public Offering”) that closed on November 24, 2020 (the “Closing Date”) and the Private Placement, and from additional issuances of, if any, our equity and our debt, or a combination of cash, equity and debt.

We have incurred, and in the event the Proposed Business Combination (as defined below) is not consummated, expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plan to complete our initial Business Combination, including the proposed Business Combination will be successful.

Recent Developments

Charter Amendments

On May 18, 2022, we convened its special meeting in lieu of an annual meeting of stockholders at which our stockholders approved an amendment to our second amended and restated certificate of incorporation extending the date by which we must consummate our initial business combination from May 24, 2022 to November 24, 2022. In connection therewith, holders of 10,036,744 public shares exercised their right to redeem such public shares for a pro rata portion of the Trust Account. On May 20, 2022, the Company paid from the Trust Account an aggregate amount of $102,894,278, or approximately $10.25 per share to redeeming shareholders. Additionally, for each one-month extension, the Sponsor agreed to contribute, as a loan, to the Company $60,969 (recorded as part of the Convertible Promissory Note on the condensed balance sheet), or approximately $0.04 per public share not redeemed in connection with such extension amendment.

2225

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On November 23, 2022, we convened its special meeting in lieu of an annual meeting of stockholders at which our stockholders approved a further amendment to our second amended and restated certificate of incorporation extending the date by which we must consummate our initial business combination from November 24, 2022 to May 24, 2023. In connection therewith, holders of 954,800 public shares exercised their right to redeem such public shares for a pro rata portion of the Trust Account. On November 21, 2022, the Company paid from the Trust Account an aggregate amount of $10,142,765, or approximately $10.62 per share to such redeeming shareholders. Additionally, in connection with such extension amendment, Wentworth agreed to pay for certain merger related expenses, including depositing $69,218 per month, or approximately $0.25 per share for each public share not redeemed in connection with the extension amendment, into the Trust Account through May 2023.

On May 18, 2023, the Company convened its special meeting, and approved the proposal to extend the date by which the Company must complete its initial Business Combination from May 24, 2023 to August 24, 2023. In accordance with the Investment Management Trust Agreement between Company and Continental Stock Transfer & Trust Company (“CST”), dated November 19, 2020, the Company authorized the trustees to deposit $69,218 into the Trust Account on or about May 23, 2023.

Additionally, associated with the Special Meeting on May 18, 2023, 14,406 shares of the Company’s Class A common stock were redeemed for $164,297 or approximately $11.40 per share.

~~Through~~On August 17, 2023, the ~~date~~Company convened a special meeting of stockholders virtually and voted in the ~~filing~~affirmative ofon ~~this~~the ~~10-Q,~~proposal anto ~~aggregate~~extend ofthe ~~$850~~date by which the Company must complete its initial Business Combination from August 24,~~342~~ ~~has~~2023 ~~been~~to ~~deposited~~November ~~into~~24, 2023 (the ~~Trust~~“Extension ~~Account~~Amendment Proposal 4”). In Ofconnection with the ~~amount~~Extension ~~deposited~~Amendment inProposal 4, a shareholder holding one Public Share exercised their right to redeem such Public Share for a pro rata portion of the Trust Account. On August 23, ~~$504~~2023,~~250~~ ~~came~~the Company paid from the ~~Sponsor~~Trust Account a $12.23 to the redeeming shareholder. In connection with such extension and pursuant to the Merger Agreement, Wentworth deposited $~~346~~69,~~092~~218 ~~came~~per ~~from~~month ~~Wentworth~~into the Trust Account through the Company’s extension date in November 2023.

~~Our~~Additionally, ~~Charter~~at ~~requires~~such usspecial tomeeting ~~provide~~the ~~our~~Company’s ~~public~~ stockholders ~~with~~approved ~~the~~further ~~opportunity~~amendments to ~~redeem~~the ~~their~~Company’s ~~public~~second ~~shares~~amended ~~for~~and ~~cash~~restated ifcertificate weof ~~propose~~incorporation anto ~~amendment~~provide toholders ~~our~~of ~~Charter~~the ~~that~~Company’s ~~would~~Class ~~modify~~B common stock the ~~substance~~right orto ~~timing~~convert their shares of ~~our~~Class ~~obligation~~B tocommon ~~redeem~~stock ~~100%~~into shares of ~~our~~Class ~~public~~A ~~shares~~common ifstock weon doa ~~not~~one-to-one ~~consummate~~basis ~~our~~at ~~initial~~any ~~Business~~time ~~Combination~~and byfrom ~~August~~time ~~24,~~to ~~2023~~time orat ~~with~~the ~~respect~~election toof ~~any~~the ~~other~~holder. On ~~material~~August ~~provisions~~17, ~~relating~~2023, toSponsor ~~stockholders’~~converted ~~rights~~2,605,000 orshares ~~pre-initial~~of ~~business~~Class ~~combination~~B ~~activity.~~common Ifstock weinto ~~are~~shares ~~unable~~of toClass ~~consummate~~A ~~our~~common ~~initial~~stock ~~business~~on ~~combination~~a byone-for-one ~~August~~basis. ~~24,~~The ~~2023,~~holders weof ~~may~~the ~~seek~~newly toconverted ~~amend~~shares ~~our~~of ~~charter~~Class A common stock have agreed to ~~further~~carry ~~extend~~over the ~~time~~transfer torestrictions ~~consummate~~associated anwith ~~initial~~the ~~business~~Founder ~~combination~~Shares inand ~~order~~have no rights to ~~effectuate~~funds ~~our~~in ~~initial~~the ~~business~~Trust ~~combination~~Account.

OnFollowing ~~August 17, 2023, we convened a special meeting of stockholders virtually at which our stockholders approved extending~~ the ~~date~~aforementioned byconversion ~~which~~and ~~we must complete a Business Combination from August 24~~redemptions, ~~2023 to November 24, 2023 (~~the ~~“Extension~~Company ~~Amendment~~had ~~Proposal 4”). In connection with the Extension Amendment Proposal 4~~3,203,049 ashares ~~shareholder holding one Public Share exercised its right to redeem such Public Share for a pro rata portion~~ of ~~the~~Class ~~Trust~~A ~~Account.~~common Westock ~~expect~~and to270,000 ~~pay~~shares ~~from the Trust Account an aggregate amount~~ of ~~$12.23~~Class toB ~~the~~common ~~redeeming~~stock ~~shareholder.~~issued ~~In connection with such extension~~ and ~~pursuant to the Merger Agreement, Wentworth has agreed to deposit $69,218 per month into the Trust Account through the Company’s extension date in November 2023~~outstanding.

~~Additionally,~~On atNovember ~~such~~17, ~~special~~2023, ~~meeting our stockholders approved additional amendments to~~ the Company’s ~~second~~held ~~amended~~a ~~and~~special ~~restated~~meeting ~~certificate~~at ofwhich ~~incorporation to provide holders of~~ the Company’s ~~class~~stockholders Bapproved ~~common~~extending ~~stock~~ the ~~right~~date toby ~~convert~~which ~~their~~the ~~shares~~Company ofmust ~~class~~complete Bits ~~common~~initial ~~stock~~Business ~~into~~Combination ~~shares~~from ofNovember ~~class~~24, A2023 ~~common stock on a one-~~to~~-one~~ ~~basis~~February at24, ~~any~~2024. ~~time~~In ~~and~~connection ~~from~~with ~~time to time at~~ the ~~election~~approval of the ~~holder.~~extension, Onstockholders ~~August~~elected ~~17,~~to ~~2023~~redeem 9,966 ~~Sponsor~~Public ~~notified~~Share ~~CST~~and ~~that~~exercised ittheir ~~was~~right ~~electing~~ to ~~convert~~redeem ~~approximately~~such ~~2,605,000~~Public ~~shares~~Share offor ~~class~~a Bpro ~~common~~rata ~~stock~~portion ~~into shares~~ of ~~class~~the ATrust ~~common stock~~Account. The ~~holders~~Company ofexpects ~~the~~to ~~newly~~pay ~~converted~~an ~~shares~~aggregate of ~~class~~approximately A$12.46 ~~common~~from ~~stock~~the ~~have~~Trust ~~agreed~~Account toor ~~carry~~$124,176 ~~over~~to the ~~transfer~~redeeming ~~restrictions~~stockholders ~~associated~~in with ~~the~~respect ~~Founder Shares and have no rights~~ to ~~funds~~such inredeemed ~~the~~Public ~~Trust Account~~Shares.

In November 2023, Wentworth deposited $69,218 into the Trust Account and thus extending the Combination Period to December 24, 2023.

Through the date of the filing of this 10-Q, an aggregate of $1,127,215 has been deposited into the Trust Account. Of the amount deposited in the Trust Account, $504,250 came from the Sponsor and $622,965 came from Wentworth.

Our Charter requires us to provide our public stockholders with the opportunity to redeem their public shares for cash if we propose an amendment to our Charter that would modify the substance or timing of our obligation to redeem 100% of our public shares if we do not consummate our initial Business Combination by February 24, 2024 or with respect to any other material provisions relating to stockholders’ rights or pre-initial business combination activity. If we are unable to consummate our initial business combination by February 24, 2024, we may seek to amend our charter to further extend the time to consummate an initial business combination in order to effectuate our initial business combination.

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Business Combination Agreement

On July 7, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Binah Capital Group, Inc., a Delaware corporation (“Holdings”), Kingswood Merger Sub, Inc., a Delaware corporation (“Kingswood Merger Sub”), Wentworth Merger Sub, LLC, a Delaware limited liability company (“Wentworth Merger Sub”), and Wentworth Management Services LLC, a Delaware limited liability company (“Wentworth”). Each of Holdings, Kingswood Merger Sub and Wentworth Merger Sub are newly formed entities that were formed for the sole purpose of entering into and consummating the transactions set forth in the Merger Agreement. Holdings is a wholly-owned direct subsidiary of Kingswood and both Kingswood Merger Sub and Wentworth Merger Sub are wholly-owned direct subsidiaries of Holdings.

The business combination contemplated by the Merger Agreement is structured as a “double dummy” transaction, pursuant to which: (i) Kingswood Merger Sub will merge with and into the Company (the “Kingswood Merger”), with the Company surviving the Kingswood Merger as a wholly owned subsidiary of Holdings (the “Kingswood Surviving Company”); (ii) simultaneously with the Kingswood Merger, Wentworth Merger Sub will merge with and into Wentworth (the “Wentworth Merger”), with Wentworth surviving the Wentworth Merger as a wholly-owned subsidiary of Holdings (the “Wentworth Surviving Company”). Kingswood Surviving Company will acquire, and Holdings will contribute to Kingswood Surviving Company (the “Holdings Contribution”) all units of the Wentworth Surviving Company directly held by Holdings after the Wentworth Merger, such that, following the Holdings Contribution, the Wentworth Surviving Company will be a wholly-owned subsidiary of the Kingswood Surviving Company (together with the Kingswood Merger, the Wentworth Merger and the other transactions related thereto, the “Transactions”).

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the Wentworth Merger as a wholly-owned subsidiary of Holdings (the “Wentworth Surviving Company”). Kingswood Surviving Company will acquire, and Holdings will contribute to Kingswood Surviving Company (the “Holdings Contribution”) all units of the Wentworth Surviving Company directly held by Holdings after the Wentworth Merger, such that, following the Holdings Contribution, the Wentworth Surviving Company will be a wholly-owned subsidiary of the Kingswood Surviving Company (together with the Kingswood Merger, the Wentworth Merger and the other transactions related thereto, the “Transactions”).

In connection with the Kingswood Merger, our stockholders will have the right to receive (i) one share of Holdings common stock in exchange for each share of Class A common stock outstanding immediately prior to the effective time of the Kingswood Merger, and (ii) one Holdings warrant in exchange for each public warrant of the Company outstanding immediately prior to the effective time of the Kingswood Merger. Each such Holdings warrant will entitle the holder thereof to purchase one share of Holdings common stock at a price of $11.50 per share and will have terms comparable to the public warrants.

Our sponsor, as a stockholder of the Company, will have the right to receive (i) one share of Holdings common stock in exchange for each Founder Share outstanding immediately prior to the effective time of the Kingswood Merger, and (ii) up to one Holdings warrant in exchange for each Private Placement Warrant outstanding immediately prior to the effective time of the Kingswood Merger, subject to the satisfaction of certain conditions. Each such Holdings warrant will entitle the holder thereof to purchase one share of Holdings common stock at a price of $11.50 per share and will have terms comparable to the private placement warrants.

In connection with the Transactions, the consideration payable to securityholders in Wentworth (the “Wentworth Merger Consideration”) will consist of Holdings common shares issued on the closing date of the Transactions (the “Share Consideration”), and the assumption of all indebtedness of Wentworth as of the closing date of the Transactions (the “Assumed Indebtedness”). The Wentworth Merger Consideration is equal to the quotient of: (a) the difference of (i) enterprise value, minus (ii) closing Wentworth indebtedness, minus (iii) sponsor share value, minus (iv) outstanding Transaction expenses, minus (v) Wentworth Class B Redemption Amount, divided by (b) the Per Share Price; provided, however, that, in no event shall the Wentworth Merger Consideration be less than the Minimum Wentworth Share Amount.

The Merger Agreements contains additional representations, warranties, covenants, conditions precedent and other terms and conditions customary for transactions of this type, including, but not limited to approval by our shareholders of the Merger Agreement. The terms of the Merger Agreement and other related ancillary agreements are summarized in more detail in our Current Report on Form 8-K filed with the SEC on July 7, 2022.

On December 30, 2022, the Company, Holdings, and Wentworth entered into a side letter agreement to the Merger Agreement revising the Merger Agreement to extend the date upon which the Merger Agreement is terminable at the option of the Company or Wentworth from December 30, 2022 to June 30, 2023. On March 20, 2023, Kingswood, Holdings, Kingswood Merger Sub, Wentworth Merger Sub and Wentworth entered that certain First Amendment to the Merger Agreement to, among other things, (i) ~~amends~~amend and ~~restates~~restate the definition of “Transaction Expenses Shortfall” in the Merger Agreement to an amount equal to (x) the Outstanding Transaction Expenses (as defined in the Merger Agreement) minus (y) the Available Closing Date Cash (as defined in the Merger Agreement); (ii) amend and restate the condition precedent in Section 8.03(k) of the Merger Agreement to require that Available Closing Date Cash be sufficient to cover an amount equal to the sum of $3,500,000 and the Outstanding Transaction Expenses; and (iii) amend and restate the termination rights in Section 9.01(c)(B) to allow for the termination of the Merger Agreement if the Available Closing Date Cash is insufficient to cover the sum of $3,500,000 and the Outstanding Transaction Expenses.

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On September 13, 2023, the Company, Holdings, Kingswood Merger Sub, Wentworth Merger Sub and Wentworth entered that certain Second Amendment to the Merger Agreement further amending, modifying, and supplementing the Merger Agreement (as amended) to, among other things:

●

delete the definitions of “Converted Company Debt Amount” and “Minimum Company Share Amount” and references to such terms in the Merger Agreement;

●

amend and restate Section 2.09(d)(i) to provide for the forfeiture by Sponsor of 3,084,450 Private Warrants immediately prior to the effective time of the business combination;

●

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amend and restate the closing condition in Section 8.03(k) to require the Available Closing Date Cash not be less than $14,000,000;

●

amend the definition of “Termination Date” by replacing “June 30, 2023” with “November 24, 2023; and

●

Support Agreements

Contemporaneously with the execution of the Merger Agreement, (i) certain holders of the Kingswood common stock, including our sponsor, entered into the Founder Support Agreement, pursuant to which, among other things, such holders agreed to approve the Merger Agreement, and (ii) securityholders of Wentworth representing a majority of Wentworth’s outstanding membership interests entered into the Wentworth Support Agreement, pursuant to which, among other things, such Wentworth securityholders agreed to approve the Merger Agreement.

In addition, the holders of our private placement warrants have agreed that at the effective time of the Kingswood Merger, the aggregate number of issued and outstanding private placement warrants held by the Sponsor Support Holders shall be adjusted in the following manner: (i) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is less than $15,000,000 then 100% of the private placement warrants will be forfeited; (ii) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $15,000,000 but less than $17,500,000 then 90% of the private placement warrants will be forfeited; (iii) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $17,500,000 but less than $20,000,000 then 80% of the private placement warrants would be forfeited; (iv) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $20,000,000 but less than $22,500,000 then 70% of the private placement warrants will be forfeited; (v) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $22,500,000 but less than $25,000,000 then 60% of the private placement warrants will be forfeited; (vi) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $25,000,000 but less than $27,500,000 then 50% of the private placement warrants will be forfeited; (vii) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $27,500,000 but less than $30,000,000 then 40% of the private placement warrants will be forfeited; (viii) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $30,000,000 then 0% of the private placement warrants will be forfeited.

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will be forfeited; (iii) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $17,500,000 but less than $20,000,000 then 80% of the private placement warrants would be forfeited; (iv) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $20,000,000 but less than $22,500,000 then 70% of the private placement warrants will be forfeited; (v) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $22,500,000 but less than $25,000,000 then 60% of the private placement warrants will be forfeited; (vi) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $25,000,000 but less than $27,500,000 then 50% of the private placement warrants will be forfeited; (vii) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $27,500,000 but less than $30,000,000 then 40% of the private placement warrants will be forfeited; (viii) if the aggregate of the cash remaining in the Trust Account and proceeds from any PIPE is equal to or greater than $30,000,000 then 0% of the private placement warrants will be forfeited.

Results of Operations

For the three months ended ~~June~~September 30, 2023, we incurred a loss from operations of $~~636~~722,~~997~~094. In addition to the loss from operations, we realized other income of $~~227~~156,~~946~~823 consisting of interest income of $5257,~~731~~389 from the Trust and operating bank accounts, and a $151,846 gain onfrom ~~the~~a ~~change~~decrease in the fair value of the ~~convertible~~Company’s ~~promissory~~warrant ~~note~~liability ofpartially ~~$23,370~~offset ~~and~~by a ~~$151,845~~loss ~~gain~~on ~~from~~the achange ~~decrease~~ in ~~the~~ fair value of the ~~Company’s~~convertible ~~warrant~~promissory ~~liability.~~note of $52,412.

For the six months ended June 30, 2023, we incurred a loss from operations of $1,230,033. In addition to the loss from operations, we realized other income of $401,460 consisting of interest income of $103,637 from the Trust and operating bank accounts, a loss on the change in fair value of the convertible promissory note of $5,868 and a $303,691 gain from a decrease in the fair value of the Company’s warrant liability. For the three and six months ended June 30, 2023, our efforts have been limited to activities relating to consummating the proposed Business Combination and activities relating to general corporate matters. We have not generated any income, other than interest income earned on the proceeds held in the Trust and operating bank accounts. Additionally, we recognize non-cash gains and losses within other income (expense) related to changes in recurring fair value measurement of our warrant liabilities and convertible promissory note at each reporting period.29

For the three months ended June 30, 2022, we incurred a net loss for the Company of $519,951 including the loss from operations of $1,648,928 and tax expense of $4,032, offset by the changes in fair value of warrant liability of $1,062,919, changes in fair value of convertible promissory note of $3,049 and interest income from the Trust Account of $67,041.

For the six months ended June 30, 2022, we incurred a loss from operations of $2,525,125, including legal and professional fees of $2,316,997, directors’ fee of $52,500, insurance expenses of $74,384 and other general operation expenses totalling $81,244. We also incurred $4,032 in tax expenses. In addition to the loss from operations, we realized other income of $5,501,447 consisting of interest income of $77,563 from the Trust and operating bank accounts, a gain on the change in fair value of the convertible promissory note of $109,291 and a $5,314,593 gain from a decrease in the fair value of the Company’s warrant liability. Through June 30, 2022, our efforts have been limited to organizational activities, activities relating to identifying and evaluating prospective acquisition candidates and activities relating to general corporate matters. We have not generated any income, other than interest income earned on the proceeds held in the Trust and operating bank accounts. Additionally, we recognize non-cash gains and losses within other income (expense) related to changes in recurring fair value measurement of our warrant liabilities at each reporting period.

At June 30, 2023, $5,869,087 was held in the Trust Account (including $4,025,000 of deferred underwriting discounts and commissions).

Except for the withdrawal of interest to pay our taxes and up to $100,000 to pay dissolution expenses, if any, our Charter provides that none of the funds held in trust will be released from the Trust Account until such time as or under the following circumstances (i) the completion of an initial business combination; (ii) the redemption of any of the shares of Class A common stock included in the units sold in the Public Offering (the “Units”) properly submitted in connection with a stockholder vote to amend the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the common stock included in the Units being sold in the Public Offering if the Company does Offering if the Company does not complete an initial business combination by November 24, 2023 or with respect to any other material provisions relating to stockholders’ rights or pre-initial business combination activity or (iii) the redemption of 100% of the shares of Class A common stock included in the Units sold in the Public Offering if we are unable to complete a business combination by November 24, 2023, as extended. Through June 30, 2023, we have not withdrawn any funds from interest earned on the trust proceeds to pay taxes. Other than the deferred underwriting discounts and commissions, no amounts are payable to the underwriters of the Public Offering in the event of a business combination.

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For the nine months ended September 30, 2023, we incurred a loss from operations of $1,952,127. In addition to the loss from operations, we realized other income of $558,283 consisting of interest income of $161,026 from the Trust and operating bank accounts and a $455,537 gain from a decrease in the fair value of the Company’s warrant liability, partially offset by a loss on the change in fair value of the convertible promissory note of $58,280. For the three and nine months ended September 30, 2023, our efforts have been limited to activities relating to consummating the proposed Business Combination and activities relating to general corporate matters. We have not generated any income, other than interest income earned on the proceeds held in the Trust and operating bank accounts. Additionally, we recognize non-cash gains and losses within other income (expense) related to changes in recurring fair value measurement of our warrant liabilities and convertible promissory note at each reporting period.

For the three months ended September 30, 2022, we incurred a loss from operations of $736,011. Net income for the Company of $229,989 included the changes in fair value of warrant liability of $759,227, changes in fair value of convertible promissory note of $140,888 and interest income from the Trust Account of $67,094, offset by loss from operations and tax expense of $1,209.

For the nine months ended September 30, 2022, we incurred a loss from operations of $3,261,136, including legal and professional fees of $2,936,487, directors’ fee of $78,750, insurance expenses of $112,192 and other general operating expenses totalling $133,707. We also incurred $5,241 in tax expenses. In addition to the loss from operations, we realized other income of $6,468,656 consisting of interest income of $144,657 from the Trust and operating bank accounts, a gain on the change in fair value of the convertible promissory note of $250,179 and a $6,073,820 gain from a decrease in the fair value of the Company’s warrant liability.

At September 30, 2023, $6,134,176 was held in the Trust Account (including $4,025,000 of deferred underwriting discounts and commissions).

Except for the withdrawal of interest to pay our taxes and up to $100,000 to pay dissolution expenses, if any, our Charter provides that none of the funds held in trust will be released from the Trust Account until such time as or under the following circumstances (i) the completion of an initial business combination; (ii) the redemption of any of the shares of Class A common stock included in the units sold in the Public Offering (the “Units”) properly submitted in connection with a stockholder vote to amend the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the common stock included in the Units being sold in the Public Offering if the Company does Offering if the Company does not complete an initial business combination by February 24, 2024 or with respect to any other material provisions relating to stockholders’ rights or pre-initial business combination activity or (iii) the redemption of 100% of the shares of Class A common stock included in the Units sold in the Public Offering if we are unable to complete a business combination by February 24, 2024, as extended. Through September 30, 2023, we have not withdrawn any funds from interest earned on the trust proceeds to pay taxes. Other than the deferred underwriting discounts and commissions, no amounts are payable to the underwriters of the Public Offering in the event of a business combination.

Liquidity, Capital Resources and Going Concern

As of ~~June~~September 30, 2023, we had cash outside our Trust Account of $101,~~379~~509, available for working capital needs and a working capital deficit of $6,~~270~~978,~~189 (excluding federal income and Delaware franchise taxes)~~743. We intend to use the funds held outside the Trust Account for consummating the business combination.

As of ~~June~~September 30, 2023, assets held in the Trust Account of $56,~~869~~134,~~087~~176 consisted of a demand deposit account. Interest income on the balance in the Trust Account may be used by us to pay taxes. Through ~~June~~September 30, 2023, we did not withdraw any interest earned on the Trust Account to pay our taxes. All remaining cash was held in the Trust Account and is generally unavailable for our use, prior to an initial business combination.

For the ~~six~~nine months ended ~~June~~September 30, 2023, cash used in operating activities was $~~197~~206,~~914~~784. Net loss of $~~853~~1,~~287~~394,875 was primarily driven by a change in the fair value of the Warrants of $~~303~~455,~~691~~537, changes in fair value of convertible promissory note of $558,~~868~~280, interest income from the Trust Account of $~~103~~161,~~580~~026, a reversal of the deferred tax liability of $31,151, and change in other working capital of $1,~~087~~777,~~927~~525.

For the ~~six~~nine months ended ~~June~~September 30, ~~2022~~2023, cash used in ~~operating~~investing activities was $1458,~~137,582~~656. ~~Net~~We ~~income~~withdrew of $2164,~~972,290~~309 ~~was primarily driven by a change~~ in ~~the~~connection ~~fair~~with ~~value~~redemptions ofand ~~the~~invested ~~Warrants of $5,314,593, changes~~ in ~~fair value of convertible promissory note of $109,291, interest income from~~ the Trust Account of $77553,~~563,~~747 ~~and~~with anfunds ~~increase~~provided inby ~~accounts~~Wentworth ~~payable~~and $69,218 ~~taxes~~with ~~payable~~funds ~~and~~provided ~~accrued~~by ~~expenses~~the ~~of $1,391,548~~Sponsor.

OnFor ~~March~~the ~~24,~~nine ~~2022,~~months ~~our~~ended ~~Sponsor~~September ~~agreed~~30, ~~to loan us up to $1~~2023,~~500,000~~ ascash ~~may~~provided beby ~~required~~financing ~~(the~~activities ~~“Working~~was ~~Capital Loans”)~~$389,438. IfWe wepaid ~~complete a business combination~~$164,309 wefor ~~would repay~~ the ~~Working~~redemptions ~~Capital~~of ~~Loans.~~Class InA ~~the~~common ~~event~~stock ~~that~~and areceived ~~business combination does not close~~$553,747 wefrom ~~may~~Wentworth ~~use a portion of proceeds held outside the Trust Account~~ to ~~repay~~pay ~~the~~for ~~Working~~extensions ~~Capital~~into ~~Loans, but no proceeds held in~~ the Trust Account ~~would be used to repay the Working Capital Loans~~. Such Working Capital Loans are evidenced by a promissory note. The note will either be repaid upon consummation of a business combination, without interest, or, at the lender’s discretion, or converted upon consummation of a business combination into additional Private Warrants equal to $1.00 per Private Warrant.

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For the nine months ended September 30, 2022, cash used in operating activities was $1,452,123. Net income of $3,202,279 was primarily driven by a change in the fair value of the Warrants of $6,073,820, changes in fair value of convertible promissory note of $250,179, interest income from the Trust Account of $144,609, and an increase in accounts payable, taxes payable and accrued expenses of $1,814,208.

For the nine months ended September 30, 2022, cash provided by investing activities was $102,650,402. We withdrew $102,894,278 in connection with redemptions and invested in the Trust Account $243,876 with funds provided by the Sponsor.

For the nine months ended September 30, 2022, cash used in financing activities was $101,784,278. We paid $102,894,278 for the redemptions of Class A common stock and borrowed $1,110,000 from a convertible promissory note.

On March 24, 2022, our Sponsor agreed to loan us up to $1,500,000 as may be required (the “Working Capital Loans”). If we complete a business combination, we would repay the Working Capital Loans. In the event that a business combination does not close, we may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Such Working Capital Loans are evidenced by a promissory note. The note will either be repaid upon consummation of a business combination, without interest, or, at the lender’s discretion, or converted upon consummation of a business combination into additional Private Warrants equal to $1.00 per Private Warrant. On October 6, 2023, the Company and the Sponsor amended and restated the Initial Convertible Promissory Note to provide that, among other things, upon the consummation of a Business Combination, the Initial Working Capital Loans would either be repaid, or at Wentworth’s election, converted into a number of shares of Class A common stock of the Company (or the shares or other securities of another entity for or into which the Class A common stock of the Company are exchangeable or convertible in connection with a Business Combination) equal to the then aggregate principal amount plus accrued and unpaid interests outstanding, divided by $10.00.

On October 6, 2023, the Company and Sponsor entered into an additional convertible promissory note (the “Additional Convertible Promissory Note”) pursuant to which Sponsor agreed to loan the Company up to $250,000 (such loans, the “Additional Working Capital Loans”). The Additional Convertible Promissory Note provided that, upon the consummation of a Business Combination, the Additional Working Capital Loans would either be repaid, or, at the Sponsor’s election, converted into a number of shares of Class A common stock of the Company (or the shares or other securities of another entity for or into which the Class A common stock of the Company are exchangeable or convertible in connection with a Business Combination) equal to the then aggregate principal amount plus accrued and unpaid interests outstanding, divided by $10.00. If a Business Combination is not consummated, the Additional Convertible Promissory Note provides that the Company will use a portion of proceeds held outside the Trust Account to repay the Additional Working Capital Loans, but no proceeds held in the Trust Account would be used for such purposes. As of October 25, 2023, $250,000 was drawn on the Additional Convertible Promissory Note.

If our estimate of the costs of completing the contemplated business combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate the business prior to a business combination. Moreover, in addition to the access to the Working Capital Loans, we may need to obtain other financing either to complete a business combination or because we become obligated to redeem a significant number of public shares upon consummation of a business combination, in which case we may issue additional securities or incur debt in connection with such business combination. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion of a business combination. If we are unable to complete a business combination because we do not have sufficient funds available, we will be forced to cease operations and liquidate the Trust Account. In addition, following a business combination, if cash on hand is insufficient, we may need to obtain additional financing in order to meet our obligations.

We have until ~~November~~February 24, ~~2023~~2024 (as extended) to consummate a Business Combination. It is uncertain that we will be able to consummate a business combination by this time. If a business combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution unless time for which the business combination is otherwise extended as further outlined above under the heading “Charter Amendments”. Management has determined that the mandatory liquidation, should a business combination not occur, and potential subsequent dissolution and our working capital deficiency raises substantial doubt about our ability to continue as a going concern for a reasonable period of time, which is considered to be one year from the issuance of the financial statements. No adjustments have been made to the carrying amounts of assets or liabilities should we be required to liquidate after ~~November~~ February 24, ~~2023~~2024 (as extended).

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the approval of the extension, stockholders elected to redeem 9,966 Public Share and exercised their right to redeem such Public Share for a pro rata portion of the Trust Account. The Company expects to pay an aggregate of approximately $12.46 from the Trust Account or $124,176 to the redeeming stockholders in with respect to such redeemed Public Shares.

Off-Balance Sheet Arrangements

We have no obligations, assets or liabilities which would be considered off-balance sheet arrangements as of ~~June~~September 30, 2023. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements.

We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or entered into any non-financial agreements involving assets.

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Contractual obligations

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities other than an administrative agreement to reimburse our sponsor for office space, secretarial and administrative services provided to members of the Company’s management team by the sponsor, members of our sponsor, and the Company’s management team or their affiliates in an amount not to exceed $10,000 per month in the event such space and/or services are utilized and the Company does not pay a third party directly for such services, from the date of closing of the Public Offering. Upon completion of a business combination or the Company’s liquidation, the Company will cease paying these monthly fees.

Commencing on the date of the final prospectus for the Public Offering, the Company has agreed to pay the Sponsor up to $10,000 per month for office space, secretarial and administrative services as needed. Upon completion of the initial Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees. The Sponsor has forgone charging the Company for the administrative service fee and during the year ended December 31, 2022, the Sponsor agreed to forgive the aggregate administrative service fee incurred in the amount of $1,667.

The underwriters are entitled to a deferred fee of $0.35 per units, or $4,025,000 in the aggregate will be payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes an initial Business Combination, subject to the terms of the underwriting agreement.

Registration Rights

Critical Accounting Policies

The preparation of condensed financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following as our critical accounting policies:

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Derivative Warrant Liabilities

We account for the warrants issued in connection with our initial public offering in accordance with Accounting Standards Codification (“ASC”) 815-40, “Derivatives and Hedging-Contracts in Entity’s Own Equity” (“ASC 815”), under which the warrants do not meet the criteria for equity classification and must be recorded as liabilities. As the warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants are measured at fair value at inception and at each reporting date in accordance with ASC 820, Fair Value Measurement, with changes in fair value recognized in the Statements of Operations in the period of change.

Convertible Promissory Note

On March 24, 2022, the Company and Sponsor entered into the Initial Convertible Promissory Note pursuant to which Sponsor agreed to loan usthe Company up to $1,500,000. toThe beInitial ~~used~~Convertible ~~for~~Promissory aNote ~~portion~~provides ofthat, upon the ~~expenses~~consummation of ~~the~~a ~~Company.~~Business AtCombination, the ~~option~~Initial ofWorking Capital Loans would either be repaid, without interest, or, at the Sponsor’s election, converted into additional Private Warrants at ~~any~~a ~~time~~price onof or$1.00 ~~prior~~per toPrivate ~~the~~Warrant. ~~maturity~~If ~~date~~a Business Combination is not consummated, ~~any~~the ~~unpaid~~Initial ~~principal~~Convertible ~~amount~~Promissory ~~outstanding~~Note ~~may~~provides bethat ~~converted~~the ~~into~~Company ~~whole~~will ~~warrants~~use ~~(“Conversion~~a ~~Warrants”)~~portion of proceeds held outside the Trust Account to ~~purchase~~repay ~~Class~~the AInitial ~~common~~Working ~~stock~~Capital atLoans, abut ~~conversion~~no ~~price~~proceeds ~~equal~~held toin ~~$1.00~~the ~~per~~Trust ~~warrant~~Account would be used for such purposes. We elected the fair value option as the reporting value of the Convertible Promissory Note. As a result of applying the fair value option, we record each draw with a gain or loss recognized at issuance, and subsequent changes in fair value are recorded as change in fair value of convertible promissory note on the condensed statement of operations. The fair value is based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s assumption a market participant would use in pricing the asset or liability.

27On October 6, 2023, the Company and Sponsor entered into that Amended and Restated Convertible Promissory Note (the “A&R Convertible Promissory Note”), which amends and restates the Initial Convertible Promissory Note to provide that, among other things, upon the consummation of a Business Combination, the Initial Working Capital Loans would either be repaid, or at Wentworth’s election, converted into a number of shares of Class A common stock of the Company (or the shares or other securities of another entity for or into which the Class A common stock of the Company are exchangeable or convertible in connection with a Business Combination) equal to the then aggregate principal amount plus accrued and unpaid interests outstanding, divided by $10.00.

~~Table~~Also on October 6, 2023, the Company and Sponsor entered into an additional convertible promissory note (the “Additional Convertible Promissory Note”) pursuant to which Sponsor agreed to loan the Company up to $250,000 (such loans, the “Additional Working Capital Loans”). The Additional Convertible Promissory Note provided that, upon the consummation of ~~Contents~~a Business Combination, the Additional Working Capital Loans would either be repaid, or, at the Sponsor’s election, converted into a number of shares of Class A common stock of the Company (or the shares or other securities of another entity for or into which the Class A common stock of the Company are exchangeable or convertible in connection with a Business Combination) equal to the then aggregate principal amount plus accrued and unpaid interests outstanding, divided by $10.00. If a Business Combination is not consummated, the Additional Convertible Promissory Note provides that the Company will use a portion of proceeds held outside the Trust Account to repay the Additional Working Capital Loans, but no proceeds held in the Trust Account would be used for such purposes.

require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s assumption a market participant would use in pricing the asset or liability.

Redeemable Shares of Class A Common Stock

We account for our Class A common stock subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable common stock (including common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. Our redeemable Class A common stock features certain redemption rights that are considered to be outside of our control and subject to occurrence of uncertain future events. Accordingly, shares of redeemable Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ deficit section of our balance sheets.

On May 18, 2022, the Company held a special meeting in lieu of an annual meeting pursuant to which the stockholders approved extending the date by which the Company had to complete a business combination from May 24, 2022 to November 24, 2022. In connection with the approval of the extension, stockholders elected to redeem an aggregate of 10,036,744 class A common stock. As a result, an aggregate of $102,894,278 (or approximately ($10.25 per share) was released from the Trust Account to pay such stockholders.

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On November 23, 2022, the Company held a special meeting in lieu of an annual meeting pursuant to which the stockholders approved extending the date by which the Company had to complete a business combination from November 24, 2022 to May 24, 2023. In connection with the approval of the extension, stockholders elected to redeem an aggregate of 954,800 class A common stock. As a result, an aggregate of $10,142,765 (or approximately ($10.62 per share) was released from the Trust Account to pay such stockholders.

On May 18, 2023, the Company convened a special meeting and approved the proposal to extend the date by which the Company must complete its initial Business Combination from May 24, 2023 to August 24, 2023. In connection with the approval of the extension, stockholders elected to redeem an aggregate of 14,406 class A common stock. As a result, an aggregate of $164,297 (or approximately $10.40 per share) was released from the Trust Account to pay such stockholders. Accordingly, as of June 30, 2023 and December 31, 2022, 494,050 and 508,456 shares of class A common stock subject to possible redemption, respectively, are presented at redemption value as temporary equity, outside of the stockholders’ deficit section of the balance sheets.

~~Net~~On ~~Income~~August 17, 2023, the Company convened a special meeting of stockholders virtually and voted in the affirmative on the proposal to extend the date by which the Company must complete its initial Business Combination from August 24, 2023 to November 24, 2023 (~~Loss~~the “Extension Amendment Proposal 4”). In ~~per~~connection with the Extension Amendment Proposal 4, a shareholder holding one Public Share exercised their right to redeem such Public Share for a pro rata portion of the Trust Account. On August 23, 2023, the Company paid from the Trust Account a $12.23 to the redeeming shareholder.

WeOn ~~have~~November ~~two~~17, ~~classes of stock~~2023, ~~which~~the ~~are~~Company ~~referred~~held toa asspecial ~~redeemable~~meeting ~~Class~~at Awhich ~~common~~the ~~stock~~Company’s ~~and~~stockholders ~~non-redeemable~~approved ~~Class~~extending Athe ~~and~~date ~~Class~~by Bwhich ~~common~~the ~~stock.~~Company ~~Earnings~~must ~~and~~complete ~~losses~~its ~~are~~initial ~~shared~~Business ~~pro~~Combination ~~rata~~from ~~between~~November ~~the~~24, ~~two~~2023 ~~classes~~to ofFebruary ~~stock. The 15~~24,~~184,550~~ ~~potential~~2024. ~~common~~In ~~stock~~connection ~~for~~with ~~outstanding~~the ~~warrants~~approval toof ~~purchase~~the ~~our~~extension, ~~stock~~stockholders ~~were~~elected ~~excluded~~to ~~from~~redeem ~~diluted~~9,966 ~~earnings~~Public ~~per~~Share ~~share~~and ~~for~~exercised ~~the~~their ~~three~~right ~~and~~to ~~six~~redeem ~~months~~such ~~ended~~Public ~~June~~Share ~~30,~~for ~~2023~~a ~~and~~pro ~~2022~~rata ~~because~~portion of the ~~warrants~~Trust ~~are~~Account. ~~contingently~~The ~~exercisable,~~Company ~~and~~expects ~~the~~to ~~contingencies~~pay ~~have~~an ~~not~~aggregate ~~yet~~of ~~been~~approximately ~~met~~$12.46 Asfrom athe ~~result,~~Trust ~~diluted~~Account ~~net~~or ~~loss~~$124,176 ~~per~~to ~~common stock is~~ the ~~same~~redeeming asstockholders ~~basic~~in ~~net~~with ~~loss~~respect ~~per~~to ~~common~~such ~~stock~~redeemed ~~for~~Public ~~the periods~~Shares.

With the redemptions of the Class A shares, as of September 30, 2023 and December 31, 2022, 494,049 and 508,456 shares of class A common stock subject to possible redemption, respectively, are presented at redemption value as temporary equity, outside of the stockholders’ deficit section of the balance sheets.

Net (Loss) Income per Share

We have two classes of stock, which are referred to as redeemable Class A common stock and non-redeemable Class A and Class B common stock. Earnings and losses are shared pro rata between the two classes of stock. The 15,184,550 potential common stock for outstanding warrants to purchase our stock were excluded from diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 because the warrants are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net (loss) income per common stock is the same as basic net (loss) income per common stock for the periods.

Recent Accounting Pronouncements

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In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. As we are a smaller reporting company, adoption of ASU 2020-06 will be required for fiscal years beginning after December 15, 2023, including interim periods with those fiscal years. The Company is still evaluating the impact of ASU 2020-06 and will adopt as required.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

As a “smaller reporting company,” we are not required to provide the information called for by this Item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer (who is also our Principal Financial Officer and Principal Accounting Officer), to allow timely decisions regarding required disclosure. Our management, with the participation of our current Chief Executive Officer (who is also our Principal Financial Officer and Principal Accounting Officer) (“Certifying Officer”), conducted an evaluation of the effectiveness of our disclosure controls and procedures as of ~~June~~September 30, 2023, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officer concluded that as of ~~June~~September 30, 2023 such disclosure controls and procedures were not effective due to material weaknesses in the Company’s internal control over financial reporting due to the following (described below):

●we did not have a control in place to review the appropriateness of our legal accruals,

●we did not have a control in place to review the appropriateness of our Delaware franchise tax accrual,

●we did not have a control in place to review the appropriateness of presentation in the statement of cash flows,

●

our disclosure controls and procedures were not effective due to the material weakness in our internal control over financial reporting related to the complex financial instruments.

Material Weakness

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

On April 12, 2021, the staff of the SEC (the “SEC Staff”) issued a public statement entitled “Staff Statement on Accounting and Reporting Considerations for Warrants issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Staff Statement”).

In the SEC Staff Statement, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to be classified as liabilities on the SPAC’s balance sheet as opposed to equity. In light of the SEC Staff Statement, the Company’s management reevaluated the terms of the Public Warrants, Private Placement Warrants, and warrants underlying the underwriter units (together, the “warrants”), and determined that the warrants should be classified as liabilities measured at fair value upon issuance, with subsequent changes in fair value reported in earnings each reporting period, as previously restated in our annual

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report on Form 10-K for the year ended December 31,2020 and our quarterly report on Form 10-Q for the quarter ended September 31, 2021.

Previously, a portion of the Public Shares were classified as permanent equity to maintain stockholders’ equity above $5 million on the basis that we will consummate our initial business combination only if we have net tangible assets of at least $5,000,001. Thus, the SPAC can only complete a merger and continue to exist as a public company if there is sufficient Public Shares that do not redeem at the merger and so it is appropriate to classify the portion of its Public Shares required to keep its stockholders’ equity above $5 million as “shares not subject to redemption.” Until recently, the SEC had never expressed any disagreements with the aforementioned accounting classification. However, in light of the Comment Letters, the Company’s management has, after taking appropriate professional advice, together with management re-evaluated our accounting classification of Public Shares. Upon re-evaluation, management and together with the Audit Committee determined that the Public Shares include redemption rights that is contingent upon the consummation of a business combination, as a business combination is an event outside the sole control of the Company, the Company is required to classify those Public Shares as temporary equity regardless of the charter’s requirement. As such, management concluded that all Public Shares should be reported as temporary equity on the balance sheet and changes to the Company’s net income (loss) per share calculations that have been restated within Amendment No.1 to our Forms 10-K/A for the year ending December 31, 2020, and our Form 10-Q/A for the quarter ending September 30, 2021.

Additionally, management ~~fail~~failed to properly reconcile our legal fees on a timely basis, failed to correctly calculate the Delaware franchise tax accrual, and did not have a control in place to review the appropriateness of the presentation in the statement of cash flows.

We do not expect that our disclosure controls and procedures will prevent all errors and instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial Reporting

During the quarter ended ~~June~~September 30, 2023, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting, other than as described herein. We are in the process of implementing changes to our internal control over financial reporting to remediate such material weaknesses. To remediate these material weaknesses, we developed a remediation plan with assistance from our accounting advisors and have dedicated significant resources and efforts to the remediation and improvement of our internal control over financial reporting. While we have processes to identify and appropriately apply applicable accounting requirements, we plan to enhance our system of evaluating and implementing the complex accounting standards that apply to our financial statements. Our plans at this time include providing enhanced access to accounting literature, research materials and documents and increased communication among our personnel and third-party professionals with whom we consult regarding complex accounting applications and the reconciliation and completeness of all accruals. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our annual report on Form 10-K filed with the SEC on April 17, 2023. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

As of the date of this Quarterly Report on Form 10-Q, there have been no material changes to the risk factors disclosed in our annual report on Form 10-K filed with the SEC on April 17, 2023. However, we may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

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

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Our common stock trades on the OTC Pink under the symbol “KWAC”. The OTC Pink is a quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter equity securities.

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Item 6. Exhibits.

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

Exhibit Index

Exhibit No.		Description
31.1*		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rules 13a-14 and 15d-14 promulgated under the Securities Exchange Act of 1934
32.1**		Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*		XBRL Instance Document
101.SCH*		XBRL Taxonomy Extension Schema Document
101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document
104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith

** Furnished herewith

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SIGNATURES

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

	KINGSWOOD ACQUISITION CORP.
Date: August 30, 2023	By:	/s/ Michael Nessim
Date: November 20, 2023	By:	/s/ Michael Nessim
		Name: Michael Nessim
		Title: Chief Executive Officer
		(Principal Financial Officer)

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