In connection with the preparation of financial statements for Inception Growth Acquisition for the year ended Dec. 31, 2023, management identified two errors made in certain previously issued financial statements. The errors involve the company’s accounting for deferred underwriting compensation in connection with IPO and the classification of non-redemption agreement expenses. The SPAC previously overstated $337,500 deferred underwriting compensation and classified the non-redemption agreement expenses as additional paid-in capital item.
Management determined, after consultation with advisors , that the deferred underwriting compensation should be decreased to the maximum allowed by the underwriting agreement, and the non-redemption agreement expenses should be reclassified as profit and loss item.
This affects all quarterly reports going back to May 2022, according to a regulatory filing.
Inception Growth does not expect the changes to have any impact on its cash position, revenues, liquidity, or the balance held in its trust account.
The company’s management has concluded that a material weakness exists in the internal control over financial reporting and that the disclosure controls and procedures were not effective.
The SPAC has a merger agreement with AglieAlgo, a British Virgin Islands company that, through its Singapore-based subsidiary, AgileAlgo Pte Ltd., is a maker of enterprise-grade natural language code generator for machine-learning and data management platforms. Read more.
