Filing summary
Entity discrepancy: The request identifies Zura Bio Ltd, but the supplied Form 10-Q is for JATT Acquisition Corp, a Cayman Islands blank-check company. The summary below covers the filing actually provided and should not be attributed to Zura Bio without verification.
Business context and reporting period
This unaudited 10-Q reports the quarter ended June 30, 2021, and the period from JATT’s March 10, 2021 inception through June 30, 2021. JATT had not commenced operations and was preparing for an initial public offering and seeking a business combination. It had no operating revenue.
Financial results and position
| Metric | Three months ended June 30, 2021 | Inception through June 30, 2021 |
|---|---|---|
| Revenue | None | None |
| General and administrative expenses | $19,141 | $52,180 |
| Net loss | $19,141 | $52,180 |
| Basic and diluted loss per share | $0.01 | $0.02 |
At June 30, 2021, cash was $24,976, deferred offering costs were $139,781, and total assets were $164,757. Total liabilities were $191,937, comprising accounts payable of $71,608, accrued expenses of $2,948, and $117,381 due to a related party. Shareholders’ deficit was $27,180; the filing also reports a working-capital deficit of approximately $167,000. No interest-bearing debt was reported; the Sponsor promissory note was repaid on July 21, 2021.
The cash-flow statement reports net cash used in operating activities of $24,976, but that amount is presented as a positive number and does not reconcile clearly with the listed adjustments. Cash-flow direction is therefore unclear from the supplied filing text.
Changes and subsequent events
There is no comparable prior-year period because JATT was newly formed. After quarter-end, JATT completed its IPO on July 16, 2021, issuing 12 million units at $10 each for $120 million gross proceeds. Underwriters exercised the full over-allotment on July 19, adding 1.8 million units and $18 million gross proceeds. JATT also raised approximately $5.4 million through an initial private warrant placement and $540,000 through an additional placement. Approximately $139.4 million was placed in trust. The Sponsor’s approximately $117,000 note was repaid July 21.
On August 5, 2021, JATT entered forward purchase agreements for 7.5 million Class A shares at $10 per share, to be purchased in connection with a future business combination. The filing reports no operating revenue or business-combination result for the quarter.
Outlook, risks, and other notable items
- Management expected available working capital and borrowing capacity to cover needs through the earlier of a business combination or one year from filing. Sponsor or affiliate working-capital loans were possible but not committed.
- JATT had 18 months from the IPO closing, through January 16, 2023, to complete a business combination; otherwise, it generally had to redeem public shares and liquidate.
- COVID-19 could negatively affect the company’s financial position or its search for a target, but the specific impact was not determinable.
- Warrants are classified as derivative liabilities and are subject to recurring fair-value remeasurement; resulting changes may affect future reported earnings.
- The company agreed to pay its Sponsor $10,000 monthly for administrative support beginning with NYSE listing. Deferred underwriting commissions are payable from trust funds only if a business combination is completed.
- Management concluded disclosure controls were effective; no material change in internal control was reported. The filing reports no legal proceedings and no material change to previously disclosed risk factors.
Investor verification points
- Confirm the filing’s correct issuer: the provided document is JATT Acquisition Corp’s 10-Q, not a Zura Bio Ltd filing.
- Reconcile the cash-flow statement’s positive $24,976 amount labeled “net cash used” with the underlying cash-flow items.
- Verify post-quarter IPO, over-allotment, trust funding, Sponsor-note repayment, and forward-purchase agreement details against subsequent filings.
- Review business-combination deadline, redemption terms, warrant liability accounting, and potential dilution from warrants and forward-purchase shares.