What changed in this filing

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Item 1. Financial Statements

2022-08-03 compared with 2022-02-14 · 562 added, 688 removed, 54 unchanged (96% of the section changed)

Financial Statements

Deep Medicine Acquisition Corp.

Balance Sheets

December 31, 2021

March 31, 2021

Medicine Acquisition Corp.

Current assets

Prepaid expenses

Total current assets

Cash and marketable securities held in Trust Account

and marketable securities held in Trust Account

current assets

$ 128,823,338

Liabilities and Stockholders’ (Deficit)

$ 128,953,272

Liabilities and Stockholders’

Current liabilities

Accrued expenses - related party

Accrued expenses - related

Accrued expenses

Loan payable - related party

Due to related party

Total current liabilities

payable - related party

current liabilities

Non-current liabilities

Accrued expenses - related party

Loan payable - related party

Deferred underwriting commissions

Total non-current liabilities

Total liabilities

Common stock subject to possible redemption, 12,650,000 shares at $ 10.10 per share

underwriting commissions

non-current liabilities

Common stock subject to

possible redemption, 12,650,000 shares at $ 10.10 per share

Stockholders’ (Deficit)

Preferred stock, $ 0.0001 par value, 1,000,000 shares authorized, - 0 - shares issued and outstanding as of December 31, 2021 and March 31, 2021, respectively

Class A Common stock, $ 0.0001 par value, 100,000,000 shares authorized, 620,700 and - 0 - shares issued and outstanding as of December 31, 2021 and March 31, 2021, respectively

Class B Common stock, $ 0.0001 par value, 10,000,000 shares authorized, 3,162,500 shares issued and outstanding as of December 31, 2021 and March 31, 2021

Preferred stock, $ 0.0001 par value, 1,000,000

shares authorized, - 0 - shares issued and outstanding as of June 30, 2022 and March 31, 2022

Class A Common stock, $ 0.0001 par value,

100,000,000 shares authorized, 620,700 shares issued and outstanding as of June 30, 2022 and March 31, 2022

Class B Common stock, $ 0.0001 par value,

10,000,000 shares authorized, 3,162,500 shares issued and outstanding as of June 30, 2022 and March 31, 2022

Common stock value

Additional paid-in capital

Accumulated deficits

( 3,930,738 )

Total Stockholders’ (Deficit)

( 3,776,318 )

Total Liabilities and Stockholders’ (Deficit)

Stockholders’ (Deficit)

( 3,930,360 )

The accompanying notes are an integral part of unaudited financial statement

DEEP MEDICINE ACQUISITION CORP.

Statements of Operations

For the Three Months Ended December 31, 2021

For the Three Months Ended December 31, 2020

For the Nine Months Ended December 31, 2021

For the Period from July 8, 2020 (inception) through December 31, 2020

Operating expense

( 3,775,940 )

Liabilities and Stockholders’ (Deficit)

$ 128,823,338

$ 128,953,272

accompanying notes are an integral part of unaudited financial statement

MEDICINE ACQUISITION CORP.

of Operations

June 30, 2022

June 30, 2021

Officers compensation

General and administrative expenses

Total operating expense

Unrealized gain from the trust account

Total other income

Net (loss) before income tax

Net income (loss)

and administrative expenses

operating expense

gain from the trust account

Net (loss) before income

income (loss)

Net (loss) per share

Basic and diluted - Class A

Basic and diluted - Class B

and diluted - Class A

and diluted - Class B

and diluted - Class A & B

Weighted average number of shares

Basic and diluted - Class A

Basic and diluted - Class B

The accompanying notes are an integral part of these unaudited financial statements

DEEP MEDICINE ACQUISITION CORP.

Statement of Changes in Stockholders' (Deficit)

Preferred Stock

Class A Common Stock

Class B Common Stock

Additional Paid-in

and diluted - Class A

and diluted - Class B

and diluted - Class A & B

accompanying notes are an integral part of unaudited financial statement

Medicine Acquisition Corp.

of Changes in Stockholders’ (Deficit)

Balance, March 31, 2021 (audited)

Balance, June 30, 2021

Balance, September 30, 2021

$ ( 154,668 )

$ ( 104,668 )

Class A common stock issued in IPO

Offering cost

( 2,855,000 )

Deferred underwriting commission

( 4,427,500 )

Class A common stock issued for services

Sale of 519,500 private units

Class A common stock subject to possible redemption

( 12,650,000 )

( 127,763,735 )

Balance, June 30, 2021 (unaudited)

Balance, March 31, 2022 (audited)

$ ( 3,776,318 )

Reclassification from negative additional paid-in capital to accumulated deficit

$ ( 3,775,940 )

Balance, December 31, 2021

Balance, June 30, 2022 (unaudited)

$ ( 3,930,738 )

$ ( 3,930,360 )

The accompanying notes are an integral part of these unaudited financial statements

DEEP MEDICINE ACQUISITION CORP.

Statements of Cash Flows

For the Nine Months Ended December 31, 2021

For the Period from July 8, 2020 (inception) through December 31, 2020

Cash flows from operating activities:

accompanying notes are an integral part of unaudited financial statement

Medicine Acquisition Corp.

of Cash Flows

June 30, 2022

June 30, 2021

Cash flows from operating

$ ( 154,420 )

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Unrealized gain from the trust account

Changes in operating assets and liabilities:

Adjustments to reconcile

net income to net cash provided by (used in) operating

Unrealized (gain) from

the trust account

Changes in operating assets

and liabilities:

Prepaid expenses

Accrued expenses

Accrued expenses - related parties

Net cash (used in) operating activities

Cash flows from investing activities:

Investment of cash in Trust Account

( 127,765,000 )

Net cash (used in) investing activities

( 127,765,000 )

Cash flows from financing activities:

Proceeds from sale of Units, net of underwriting discounts paid

Proceeds from sale of Private Placement Units

Payment of offering costs

Due to related party

Net cash provided by financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

expenses - related parties

Net cash (used in) operating

increase/(decrease) in cash and cash equivalents

and cash equivalents at the beginning of the period

and cash equivalents at the end of the period

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest

Cash paid for income taxes

NON-CASH INVESTING AND FINANCING ACTIVITIES:

Initial classification of ordinary shares subject to possible redemption

$ 127,765,000

Deferred underwriting fee payable

The accompanying notes are an integral part of these unaudited financial statements

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and Description of Business Operations

paid for interest

paid for income taxes

accompanying notes are an integral part of unaudited financial statement

MEDICINE ACQUISITION CORP.

(the “Company”) is a blank check company incorporated on July 8, 2020, under the laws of the State

of Delaware for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other

similar business combination with one or more businesses or entities (a “Business Combination”).

While the Company may, subject

to certain limitations, pursue a Business Combination target with operations or prospects in the digital healthcare and AI in medicine

sector in the global market.

As of December 31, 2021, the Company

had not commenced any operations.

All activity for the

period from July 8, 2020 (inception) through December 31, 2021, relates to the Company’s formation and its initial public offering

(“IPO”), which is described below, and subsequent to IPO, identifying a target company for a Business Combination.

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 cash and marketable securities held in the Trust Account (as defined below).

The Company has selected March 31 as its fiscal year end.

On October 29, 2021, the Company

consummated its IPO of 12,650,000

units (the “Units” and, with respect to the shares of Class A common stock included in the Units, the “Public

Shares”) at $ 10.00 per unit, which included

1,650,000 Units issued pursuant

NOTES TO FINANCIAL STATEMENTS

1 - Basis of Presentation

accompanying unaudited financial statements of Deep Medicine Acquisition Corp.

(the “Company”) have been prepared in accordance

with the generally accepted accounting principles 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.

Certain information or footnote disclosures normally

included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the applicable rules and

regulations for interim financial reporting.

Accordingly, they do not include all the information and footnotes necessary for a comprehensive

presentation of financial position, results of operations, or cash flows.

In the opinion of management, the accompanying unaudited 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.

accompanying unaudited financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended March

The interim results for the three months ended June 30, 2022 are not necessarily indicative of the results to be expected for

the year ending March 31, 2023 or for any future interim periods.

2 - Organization and Description of Business Operations

Company is a blank check company incorporated on July 8, 2020, under the laws of the State of Delaware for the purpose of entering into

a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or

more businesses or entities (a “Business Combination”).

While the Company may, subject to certain limitations, pursue a Business

Combination target with operations or prospects in the digital healthcare and AI in medicine sector in the global market.

of June 30, 2022, the Company had not commenced any operations.

All activity for the period from July 8, 2020 (inception) through June

30, 2022, relates to the Company’s formation and its initial public offering (“IPO”), which is described below, and

subsequent to IPO, identifying a target company for 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 cash and marketable securities held in the Trust Account (as defined below).

The Company has selected March 31 as its

fiscal year end.

October 29, 2021, the Company consummated its IPO of 12,650,000 units (the “Units” and, with respect to the shares of Class

A common stock included in the Units, the “Public Shares”) at $ 10.00 per unit, which included 1,650,000 Units issued pursuant

to the full exercise by the Underwriters (as defined below) of their over-allotment option, and the private sale of an aggregate of 519,500

Units (the “Private Placement Units” and with respect to the shares of Class A common stock included in the Units,

the “Private Placement Shares”) to its sponsor, Bright Vision Sponsor LLC (the “Sponsor”) and I-Bankers Securities,

(“I-Bankers”) at a purchase price of $ 10.00

per Private Placement Unit, generating gross proceeds of $ 5,195,000

to the Company that closed simultaneously with the closing of the IPO (see Note 3).

The Company’s securities have been listed on the Nasdaq Global Market

On December 2, 2021, the Company’s Units no longer traded, and shares of the Company’s Class A common

stock and rights underlying the Units commenced trading separately.

Transaction costs amounted to

$ 7,282,500 consisting of $ 2,530,000 in cash of underwriting commissions, $ 4,427,500 of business combination marketing fee, and $ 325,000

of other offering costs.

Upon the closing of the IPO on

October 29, 2021, the Company deposited $ 127,765,000 ($ 10.10 per Unit) from the proceeds of the IPO and certain proceeds of the sales

of Private Placement Units in the trust account (“Trust Account”), located in the United States and invested only in U.S.

government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or

less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting certain conditions

of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of:

(i) the completion of a Business Combination

and (ii) the distribution of the funds held in the Trust Account, as described below.

Following the closing of the IPO,

cash of $ 764,101 was held outside of the Trust Account (as defined below) and is available for working capital purposes.

As of December

31, 2021, the Company had available cash of $ 977,197 on its balance sheet and a working capital of $ 832,727 .

The Company’s management

has broad discretion with respect to the specific application of the net proceeds of the IPO and the sale of the Private Placement Units,

although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination.

is no assurance that the Company will be able to complete a Business Combination successfully.

The Company must complete a Business Combination

with one or more operating businesses or assets that together have an aggregate fair market value equal to at least 80 % of the net assets

held in the Trust Account (net of amounts disbursed to management for working capital purposes, if permitted, and excluding the amount

of any deferred underwriting commissions) at the time of the Company’s signing a definitive agreement in connection with its initial

Business Combination.

The Company will only complete a Business Combination if the post-transaction company owns or acquires 50 % or more

of the outstanding voting securities of the target or otherwise acquires an interest in the target business or assets sufficient for it

not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company

DEEP MEDICINE ACQUISITION CORP.

Units (the “Private Placement Units” and with respect to the shares of Class A common stock included in the Units, the “Private

Placement Shares”) to its sponsor, Bright Vision Sponsor LLC (the “Sponsor”) and I-Bankers Securities, Inc.

(“I-Bankers”)

at a purchase price of $ 10.00 per Private Placement Unit, generating gross proceeds of $ 5,195,000 to the Company that closed simultaneously

with the closing of the IPO.

The Company’s securities have been listed on the Nasdaq Global Market (“Nasdaq”).

2, 2021, the Company’s Units no longer traded, and shares of the Company’s Class A common stock and rights underlying the

Units commenced trading separately.

costs amounted to $ 7,282,500 consisting of $ 2,530,000 in cash of underwriting commissions, $ 4,427,500 of business combination marketing

fee, and $ 325,000 of other offering costs.

the closing of the IPO on October 29, 2021, the Company deposited $ 127,765,000 ($ 10.10 per Unit) from the proceeds of the IPO and certain

proceeds of the sales of Private Placement Units in the trust account (“Trust Account”), located in the United States and

invested only in U.S.

government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity

of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting

certain conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of:

(i) the completion

of a Business Combination and (ii) the distribution of the funds held in the Trust Account, as described below.

the closing of the IPO, cash of $ 764,101 was held outside of the Trust Account (as defined below) and is available for working capital

As of June 30, 2022, the Company had available cash of $ 707,977 on its balance sheet and a working capital of $ 385,860 .

Company’s management has broad discretion with respect to the specific application of the net proceeds of the IPO and the sale

of the Private Placement Units, although substantially all of the net proceeds are intended to be applied generally toward consummating

a Business Combination.

MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and Description of Business

Operations (Continued)

The Company will provide its stockholders

with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection

with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer.

The decision as to whether the

Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company.

The stockholders

will be entitled to redeem their shares for a pro rata portion of the amount held in the Trust Account (initially $ 10.10 per share), calculated

as of two business days prior to the completion of a Business Combination, including any pro rata interest earned on the funds held in

the Trust Account and not previously released to the Company to pay its tax obligations.

The shares of Class A common stock will be recorded

at redemption value and classified as temporary equity upon the completion of the IPO, in accordance with Accounting Standards Codification

(“ASC”) Topic 480 “Distinguishing Liabilities from Equity.”

The Company will proceed with

a Business Combination only if the Company has net tangible assets of at least $ 5,000,001 upon such completion of a Business Combination

and, if the Company seeks stockholder approval, a majority of the outstanding shares voted are voted in favor of the Business Combination.

If the Company seeks stockholder

approval in connection with a Business Combination, the Sponsor has agreed to (i) waive its redemption rights with respect to their Private

Placement Shares in connection with the completion of the Business Combination, (ii) waive its redemption rights with respect to their

Private Placement Shares in connection with a stockholder vote to approve an amendment to the Company’s second amended and restated

certificate of incorporation (a) to modify the substance or timing of the Company’s obligation to redeem 100 % of the Public Shares

if the Company does not complete the Business Combination within the Combination Period (as defined below) or (b) with respect to any

other provision relating to stockholders’ rights or pre-initial Business Combination activity and (iii) waive its rights to liquidating

distributions from the Trust Account with respect to their Private Placement Shares if the Company fails to complete the Business Combination

within the Combination Period.

In addition, the Sponsor has agreed to vote any share it held in favor of the Business Combination.

Additionally, each public stockholder

may elect to redeem its Public Shares, without voting, and if they do vote, irrespective of whether they vote for or against a proposed

Business Combination.

Notwithstanding the foregoing,

if the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules,

the Company’s second amended and restated certificate of incorporation provides that a public stockholder, together with any affiliate

of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under

Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its

shares with respect to more than an aggregate of 15% of the Public Shares without the Company’s prior written consent.

The Company will have until

October 29, 2022 (or April 29, 2023 if the Company may extend the period of time to consummate a Business Combination) (the

“Combination Period”) to complete a Business Combination.

If the Company is unable to complete a 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 no more than 10 business days thereafter, redeem 100 %

of the outstanding 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 (less up to $ 50,000

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 liquidation distributions, if

any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders

and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under

Delaware law to provide for claims of creditors and the requirements of other applicable law.

The Sponsor has agreed to waive

its liquidation rights with respect to the Founder Shares (as defined below) and Private Placement Shares if the Company fails to complete

a Business Combination within the Combination Period.

However, if the Sponsor acquires Public Shares in or after the IPO, such Public

Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within

the Combination Period.

The underwriters have agreed to waive their rights to their business combination marketing fees

DEEP MEDICINE ACQUISITION CORP.

July 12, 2022, the Company entered into a definitive Business Combination Agreement (the “Business Combination Agreement”)

with Chijet Inc., each of the holders of Chijet’s outstanding shares (collectively, the “ Sellers ”),

Chijet Motor Company, Inc., a wholly-owned subsidiary of Chijet (“ Pubco ”), and Chijet Motor (USA) Company,

Inc., a wholly-owned subsidiary of Pubco (“ Merger Sub ”).

Chijet indirectly holds an over 85 % interest in Shandong

Baoya New Energy Vehicle Co., Ltd., a Chinese company (“ Baoya ”), which is a producer and manufacturer of electric

In addition, Chijet indirectly holds an over 64 % interest in FAW Jilin Automobile Co., Ltd., a Chinese company (“ FAW

Jilin ”), which manufactures and sells traditional fuel vehicles.

The transactions contemplated by the Business Combination

Agreement are referred to herein as the “ Proposed Business Combination ”.

(see Note 12).

Company must complete a Business Combination with one or more operating businesses or assets that together have an aggregate fair market

value equal to at least 80 % of the net assets held in the Trust Account (net of amounts disbursed to management for working capital purposes,

if permitted, and excluding the amount of any deferred underwriting commissions) at the time of the Company’s signing a definitive

agreement in connection with its initial Business Combination.

The Company will only complete a Business Combination if the post-transaction

company owns or acquires 50 % or more of the outstanding voting securities of the target or otherwise acquires an interest in the target

business or assets sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940,

as amended (the “Investment Company Act”).

Company will provide its stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a

Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means

of a tender offer.

The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender

offer will be made by the Company.

The stockholders will be entitled to redeem their shares for a pro rata portion of the amount held

in the Trust Account (initially $ 10.10 per share), calculated as of two business days prior to the completion of a Business Combination,

including any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax

The shares of Class A common stock will be recorded at redemption value and classified as temporary equity upon the completion

of the IPO, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from

Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 upon such completion

of a Business Combination and, if the Company seeks stockholder approval, a majority of the outstanding shares voted are voted in favor

of the Business Combination.

the Company seeks stockholder approval in connection with a Business Combination, the Sponsor has agreed to (i) waive its redemption

rights with respect to their Private Placement Shares in connection with the completion of the Business Combination, (ii) waive its redemption

rights with respect to their Private Placement Shares in connection with a stockholder vote to approve an amendment to the Company’s

second amended and restated certificate of incorporation (a) to modify the substance or timing of the Company’s obligation to redeem

100% of the Public Shares if the Company does not complete the Business Combination within the Combination Period (as defined below)

or (b) with respect to any other provision relating to stockholders’ rights or pre-initial Business Combination activity and (iii)

waive its rights to liquidating distributions from the Trust Account with respect to their Private Placement Shares if the Company fails

to complete the Business Combination within the Combination Period.

In addition, the Sponsor has agreed to vote any share it held in

favor of the Business Combination.

Additionally,

each public stockholder may elect to redeem its Public Shares, without voting, and if they do vote, irrespective of whether they vote

for or against a proposed Business Combination.

Notwithstanding

the foregoing, if the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the

tender offer rules, the Company’s second amended and restated certificate of incorporation provides that a public stockholder,

together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group”

(as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted

from redeeming its shares with respect to more than an aggregate of 15 % of the Public Shares without the Company’s prior written

MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and Description of Business Operations (Continued)

(see Note 5) held in the Trust Account in the event

the Company does not complete a Business Combination within the Combination Period and, in such event, such amounts will be included with

the funds held in the Trust Account that will be available to fund the redemption of the Public Shares.

In the event of such distribution,

it is possible that the per share value of the assets remaining available for distribution will be less than the IPO price per Unit ($ 10.10 ).

The Sponsor has agreed that it

will be liable to the Company, if and to the extent any claims by a third party for services rendered or products sold to the Company,

or by a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds

in the Trust Account to below (1) $ 10.10 per Public Share or (2) such lesser amount per Public Share held in the Trust Account as of the

date of the liquidation of the Trust Account due to reductions in the value of trust assets, in each case net of the amount of interest

which may be withdrawn to pay taxes.

This liability will not apply with respect to any claims by a third party who executed a waiver of

any and all rights to seek access to the Trust Account nor will it apply to any claims under the Company’s indemnity of the underwriters

of the IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”).

Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible

to the extent of any liability for such third-party claims.

The Company will seek to reduce the possibility that the Sponsor will have

to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (other than the Company’s

independent auditors), prospective target businesses or other entities with which the Company does business, execute agreements with the

Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.

Underwriting Agreement and Business Combination

Marketing Agreement

The Company engaged I-Bankers

as the representative of the underwriters (the “Underwriters”) in the IPO of the Company’s Class A common stock, par

value of $ 0.0001 per share (“Shares”), for $110 million and the simultaneous listing on Nasdaq.

Pursuant to that certain underwriting

agreement, I-Bankers acted as the representative of the Underwriters of the IPO for 11,000,000 Units at $ 10.00 per Unit, plus an over-allotment

option equal to 15% of the number of Units offered, or 1,650,000 Units, which was exercised in full simultaneously upon the closing of

The Company paid I-Bankers underwriters’ commission of $ 2,530,000 , equal to 2.0% of the gross proceeds raised in the IPO

for such services upon the consummation of the IPO (exclusive of any applicable finders’ fees which might become payable).

Upon the closing of the

IPO, the Company issued to I-Bankers a five-year warrant to purchase 632,500 Shares of Class A common stock, equal to 5.0 % of the Shares

issued in the IPO (“Representative Warrants”).

The exercise price of Representative Warrants is $ 12.00 per Share.

I-Bankers was issued 101,200 shares of Class A common stock upon the consummation of IPO (“Representative Shares”).

In addition, under a business

combination marketing agreement, the Company has engaged I-Bankers as an advisor in connection with the Business Combination and will

pay I-Bankers a cash fee for such marketing services upon the consummation of the Business Combination in an amount equal to, in the aggregate,

3.5% of the gross proceeds of the IPO, including any proceeds from the exercise of the underwriters’ over-allotment option.

fee will become payable to the Underwriters from the amounts held in the Trust Account solely in the event that the Company completes

a Business Combination, subject to the terms of the underwriting agreement.

Liquidity and Capital Resources

The Company has principally financed

its operations from inception using proceeds from the sale of its equity securities to its shareholders prior to the IPO, proceeds from

related party loan and such amount of proceeds from the IPO that were placed in an account outside of the Trust Account for working capital

Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying

and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures,

selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination.

DEEP MEDICINE ACQUISITION CORP.

Company will have until October 29, 2022 (or April 29, 2023 if the Company may extend the period of time to consummate a Business Combination)

(the “Combination Period”) to complete a Business Combination.

If the Company is unable to complete a 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 no more than 10 business days thereafter, redeem 100 % of the outstanding 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 (less up to $ 50,000 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 liquidation distributions, if any), and (iii) as promptly

as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the Company’s board

of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims

of creditors and the requirements of other applicable law.

Sponsor has agreed to waive its liquidation rights with respect to the Founder Shares (as defined below) and Private Placement Shares

if the Company fails to complete a Business Combination within the Combination Period.

However, if the Sponsor acquires Public Shares

in or after the IPO, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to

complete a Business Combination within the Combination Period.

The underwriters have agreed to waive their rights to their business combination

marketing fees (see Note 9) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination

Period and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the

redemption of the Public Shares.

In the event of such distribution, it is possible that the per share value of the assets remaining available

for distribution will be less than the IPO price per Unit ($ 10.10 ).

Sponsor has agreed that it will be liable to the Company, if and to the extent any claims by a third party for services rendered or products

sold to the Company, or by a prospective target business with which the Company has discussed entering into a transaction agreement,

reduce the amount of funds in the Trust Account to below (1) $ 10.10 per Public Share or (2) such lesser amount per Public Share held

in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of trust assets, in each case

net of the amount of interest which may be withdrawn to pay taxes.

This liability will not apply with respect to any claims by a third

party who executed a waiver of any and all rights to seek access to the Trust Account nor will it apply to any claims under the Company’s

indemnity of the underwriters of the IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended

(the “Securities Act”).

Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party,

the Sponsor will not be responsible to the extent of any liability for such third-party claims.

The Company will seek to reduce the possibility

that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers

(other than the Company’s independent auditors), prospective target businesses or other entities with which the Company does business,

execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.

Agreement and Business Combination Marketing Agreement

Company engaged I-Bankers as the representative of the underwriters (the “Underwriters”) in the IPO of the Company’s

Class A common stock, par value of $ 0.0001 per share (“Shares”), for $ 110 million and the simultaneous listing on Nasdaq.

Pursuant to that certain underwriting agreement, I-Bankers acted as the representative of the Underwriters of the IPO for 11,000,000

Units at $ 10.00 per Unit, plus an over-allotment option equal to 15 % of the number of Units offered, or 1,650,000 Units, which was exercised

in full simultaneously upon the closing of the IPO.

The Company paid I-Bankers underwriters’ commission of $ 2,530,000 , equal to

2.0% of the gross proceeds raised in the IPO for such services upon the consummation of the IPO (exclusive of any applicable finders’

fees which might become payable).

the closing of the IPO, the Company issued to I-Bankers a five -year warrant to purchase 632,500 Shares of Class A common stock, equal

to 5.0 % of the Shares issued in the IPO (“Representative Warrants”).

The exercise price of Representative Warrants is $ 12.00

In addition, I-Bankers was issued 101,200 shares of Class A common stock upon the consummation of IPO (“Representative

MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and Description of Business Operations (Continued)

Liquidity and Capital Resources (Continued)

As of December 31, 2021,

the Company had a loan payable to the Sponsor in amount of up to $ 500,000 with zero interest (the “Loan”).

The Loan is unsecured.

Under no circumstances shall any individual, including but not limited to any officer, director, employee or stockholder of the Company,

be obligated personally for any obligations or liabilities of the Loan.

These amounts will be repaid upon completion of an initial Business

The Company may need to raise

additional capital through loans or additional investments from its Sponsor, shareholders, officers, directors, or third parties.

Company’s officers, directors and Sponsor may, but are not obligated to (other than as described above), loan the Company funds,

from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the Company’s working

capital needs.

addition, under a business combination marketing agreement, the Company has engaged I-Bankers as an advisor in connection with the Business

Combination and will pay I-Bankers a cash fee for such marketing services upon the consummation of the Business Combination in an amount

equal to, in the aggregate, 3.5% of the gross proceeds of the IPO, including any proceeds from the exercise of the underwriters’

over-allotment option .

The fee will become payable to the Underwriters from the amounts held in the Trust Account solely in the event

that the Company completes a Business Combination, subject to the terms of the underwriting agreement.

and Capital Resources

Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its shareholders

prior to the IPO, proceeds from related party loan and such amount of proceeds from the IPO that were placed in an account outside of

the Trust Account for working capital purposes.

Until the consummation of a Business Combination, the Company will be using the funds

not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective

target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating

the Business Combination.

of June 30, 2022 and March 31, 2022, the Company had a loan payable to the Sponsor in amount of $ 500,000 with zero interest (the “Loan”).

Pursuant to the promissory note between the Company and the Sponsor, the Loan is unsecured, and the Sponsor agrees to fund the Company

in amount of up to $ 500,000 .

Under no circumstances shall any individual, including but not limited to any officer, director, employee

or stockholder of the Company, be obligated personally for any obligations or liabilities of the Loan.

These amounts will be repaid upon

completion of an initial Business Combination.

Company may need to raise additional capital through loans or additional investments from its Sponsor, shareholders, officers, directors,

or third parties.

The Company’s officers, directors and Sponsor may, but are not obligated to (other than as described above),

loan the Company funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the

Company’s working capital needs.

Accordingly, the Company may not be able to obtain additional financing.

If the Company is unable to raise additional capital,

it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing

operations, suspending the pursuit of a potential transaction, and reducing overhead expenses.

The Company cannot provide any assurance

that new financing will be available to it on commercially acceptable terms, if at all.

The Company believes it will have sufficient cash

to meet its needs for a reasonable period of time, which is considered to be less than one year from the issuance date of the financial

Risks and Uncertainties

Management continues to evaluate

the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have a

negative effect on the Company’s financial position, results of its operations, and/or search for a target company, the specific

impact is not readily determinable as of the date of this financial statement.

The financial statement does not include any adjustments

that might result from the outcome of this uncertainty.

Note 2 — Significant Accounting Policies

Basis of Presentation

The accompanying financial

statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”)

and pursuant to the rules and regulations of US Securities and Exchange Commission (“SEC”).

Emerging Growth Company Status

The Company is an “emerging

growth company,” as defined in Section 2(a) of the Securities Act and 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

auditor 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 financial accounting standards.

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 statements with another public company which is neither 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.

DEEP MEDICINE ACQUISITION CORP.

If the Company is unable

to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily

be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses.

cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all.

and Uncertainties

continues to evaluate the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that

the virus could have a negative effect on the Company’s financial position, results of its operations, and/or search for a target

company, the specific impact is not readily determinable as of the date of this financial statement.

The financial statement does not

include any adjustments that might result from the outcome of this uncertainty.

Concern and Management’s Plan

Company expects to incur significant costs in pursuit of its acquisition plans and will not generate any operating revenues until after

the completion of its initial business combination.

In addition, the Company expects to have negative cash flows from operations as it

pursues an initial business combination target.

In connection with the Company’s assessment of going concern considerations in

accordance with Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s

Ability to Continue as a Going Concern” the Company does not currently have adequate liquidity to sustain operations, which consist

solely of pursuing a Business Combination.

Company may raise additional capital through loans or additional investments from the Sponsor or its shareholders, officers, directors,

or third parties.

The Company’s officers and directors and the Sponsor may, but are not obligated to (except as described above),

loan the Company funds, from time to time, in whatever amount they deem reasonable in their sole discretion, to meet the Company’s

working capital needs.

Based on the foregoing, the Company believes it will have sufficient cash to meet its needs through the earlier

of consummation of a Business Combination or the deadline to complete a Business Combination pursuant to the Company’s Amended

and Restated Certificate of Incorporation (unless otherwise amended by shareholders).

MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Significant Accounting Policies (Continued)

Use of Estimates

The preparation of 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 financial statement and the reported amounts

of 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 financial statement,

which management considered in formulating its estimate, could change in the near term due to one or more future confirming events.

results could differ from those estimates.

the Company expects to have sufficient access to additional sources of capital if necessary, there is no current commitment on the part

of any financing source to provide additional capital and no assurances can be provided that such additional capital will ultimately

be available.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern until the consummation

of a Business Combination or for a period of time within one year after the date that these unaudited financial statements are issued.

There is no assurance that the Company’s plans to raise additional capital (to the extent ultimately necessary) or to consummate

a Business Combination will be successful or successful within the Combination Period.

The financial statements do not include any adjustments

that might result from the outcome of this uncertainty.

is customary for a special purpose acquisition company, if the Company is not able to consummate a Business Combination during the Combination

Period, it will cease all operations and redeem the Public Shares.

Management plans to continue its efforts to consummate a Business

Combination during the Combination Period.

3 - Recent Accounting Pronouncements

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

ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for

all convertible instruments.

ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis,

with early adoption permitted beginning on January 1, 2021.

The adoption of ASU 2020-06 did not have an impact on the Company’s

financial statements.

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 financial statements.

4 - Cash and Cash Equivalents

The Company considers all

highly liquid investments with an original maturity of three months or less to be cash equivalents.

equivalents are carried at cost, which approximates fair value.

The Company had $ 977,197 in cash and no cash equivalents

as of December 31, 2021.

Securities Held in Trust Account

December 31, 2021, substantially all of the assets held in the Trust Account were held in money market funds, which are invested primarily

Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Cash equivalents

are carried at cost, which approximates fair value.

The Company had $ 707,977 and $ 877,099 in cash as of June 30, 2022 and March 31, 2022,

respectively, and no cash equivalent as of June 30, 2022 and March 31, 2022.

5 - Marketable Securities Held in Trust Account

June 30, 2022, substantially all of the assets held in the Trust Account were held in money market funds, which are invested primarily

Treasury securities.

The Company’s investments held in the Trust Account are classified as trading securities.

Trading securities

are presented on the balance sheet at fair value at the end of each reporting period.

Gains and losses resulting from the change in fair

value of investments held in Trust Account are included in interest earned on marketable securities held in Trust Account in the accompanying

statements of operations.

The estimated fair values of investments held in Trust Account are determined using available market information.

Subject to Possible Redemption

securities are presented on the balance sheet at fair value at the end of each reporting period.

Gains and losses resulting from the

change in fair value of investments held in Trust Account are included in interest earned on marketable securities held in Trust Account

in the accompanying statements of operations.

The estimated fair values of investments held in Trust Account are determined using available

market information.

As of June 30, 2022 and March 31, 2022, the marketable securities held in the Trust Account were $ 127,876,280 and

$ 127,760,867 , respectively.

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

6 - Common Stock Subject to Possible Redemption

Company accounts for its common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification

(“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” 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

the Company’s control) are classified as temporary equity.

At all other times, common stock are classified as shareholders’

The Company’s common stock feature certain redemption rights that are considered to be outside of the Company’s control

and subject to occurrence of uncertain future events.

Accordingly, common stock subject to possible redemption are presented at redemption

value as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet.

recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the

redemption value at the end of each reporting period.

(“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” 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 the Company’s control) are classified as temporary equity.

At all other times, common stock are classified

as shareholders’ equity.

The Company’s common stock feature certain redemption rights that are considered to be outside of

the Company’s control and subject to occurrence of uncertain future events.

Accordingly, common stock subject to possible redemption

are presented at redemption value as temporary equity, outside of the shareholders’ equity section of the Company’s balance

Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to

equal the redemption value at the end of each reporting period.

Immediately upon the closing of the IPO, the Company recognized the remeasurement

from initial book value to redemption value.

The change in the carrying value of redeemable common stock resulted in charges against additional

paid-in capital and accumulated deficit.

At December 31, 2021,

the common stock subject to redemption reflected in the balance sheet are reconciled in the following table:

In Redemption Value

The change in the carrying value of redeemable common stock resulted in charges against

additional paid-in capital and accumulated deficit.

June 30, 2022, the common stock subject to redemption reflected in the balance sheet are reconciled in the following table:

of Common Stock Subject to Redemption

Gross proceeds

$ 126,500,000

Common stock issuance costs

Remeasurement of carrying value to redemption value

Common stock subject to possible redemption

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Significant Accounting Policies (Continued)

Fair Value of Financial Instruments

The fair value of the Company’s

assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,”

approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Company follows the guidance in ASC Topic 820 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.

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:

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.

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.

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

ASC Topic 480 requires a reporting

entity to classify certain freestanding financial instruments as liabilities (or in some cases as assets).

ASC 480-10-S99 addresses concerns

raised by the SEC regarding the financial statement classification and measurement of securities subject to mandatory redemption requirements

or whose redemption is outside the control of the issuer.

If the stock subject to mandatory redemption provisions represents the only

shares in the reporting entity, it must report instruments in the liabilities section of its statement of financial position.

subject must then describe them as shares subject to mandatory redemption, so as to distinguish the instruments from other financial statement

The Company concludes that the warrants to I-Bankers do not exhibit any of the above characteristics and, therefore, are

outside the scope of ASC 480.

The warrants were issued in accordance with the guidance contained in ASC 815-40, Derivatives and Hedging

— Contracts in Entity’s Own Equity.

Deferred Offering Costs

Deferred offering costs consist of underwriting, legal, accounting and other expenses

incurred through the balance sheet date that are directly related to the IPO and have been charged to stockholder’s equity upon

the completion of the IPO.

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Significant Accounting Policies (Continued)

Stock Based Compensation

The Company recognizes compensation

costs to employees under FASB Accounting Standards Codification 718 “Compensation - Stock Compensation” (“ASC 718”).

Under ASC 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date

fair value and recognize the costs in the financial statements over the period during which employees are required to provide services.

Share based compensation arrangements include stock options and warrants.

As such, compensation cost is measured on the date of grant

at their fair value.

Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant.

On July 8, 2020, the inception

date, the Company adopted ASU No.

2018-07 “Compensation - Stock Compensation (Topic 718):

Improvements to Nonemployee Share-Based

Payment Accounting.” These amendments expand the scope of Topic 718, Compensation - Stock Compensation (which currently only

includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services.

Consequently,

the accounting for share-based payments to nonemployees and employees will be substantially aligned.

The Company accounts for

income taxes under ASC 740 Income Taxes (“ASC 740”).

ASC 740 requires the recognition of deferred tax assets and liabilities

for both the expected impact of differences between the financial statement 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.

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

Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring

recognition in the Company’s financial statements.

Since the Company was incorporated on July 8, 2020, the evaluation was performed

for 2020 tax year which is the only period subject to examination.

The Company believes that its income tax positions and

deductions would be sustained on audit and does not anticipate any adjustments that would result in a material changes to its financial

The Company’s policy for recording interest and penalties associated with audits is to record such items as a component

of income tax expense.

The provision for income

taxes was deemed to be immaterial for the three and nine months ended December 31, 2021.

Loss per Share of Common Stock

The Company complies with accounting and disclosure requirements ASC Topic

260, “Earnings per Share.” Net loss per share of common stock is computed by dividing net loss by the weighted average number

of shares of common stock issued and outstanding for the period, excluding shares of common stock subject to forfeiture.

At December 31,

2021, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares

of common stock and then share in the earnings (loss) of the Company.

As a result, diluted loss per share of common stock is the same

as basic loss per share of common stock for the period.

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Significant Accounting Policies (Continued)

Net Loss per Share

of Common Stock (Continued)

Earnings Per Share Table

For the Three Months Ended December 31, 2021

For the Three Months Ended December 31, 2020

For the Nine Months Ended December 31, 2021

For the Period from July 8, 2020 (inception) through December 31, 2020

( 2,855,000 )

Remeasurement of carrying

value to redemption value

stock subject to possible redemption

$ 127,876,280

Denominator for basic and diluted earnings per share – Weighted-average shares of Class A common stock issued and outstanding during the period

Denominator for basic and diluted earnings per share -– Weighted-average shares of Class B common stock issued and outstanding during the period

Basic and diluted loss per share – Class A

Basic and diluted loss per share – Class B

Concentration

of Credit Risk

instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution,

which, at times may exceed the Federal Depository Insurance Coverage of $ 250,000 .

The Company has not experienced losses on these accounts.

Recent Accounting Pronouncements

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.

amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments.

ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted

beginning on January 1, 2021.

The adoption of ASU 2020-06 did not have an impact on the Company’s 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

financial statements.

3 - Public Offering

At the IPO, the Company sold 12,650,000

Units at a purchase price of $ 10.00 per Unit, which included 1,650,000 Units issued pursuant to the full exercise by the Underwriters

of their over-allotment option, generating gross proceeds to the Company of $ 126,500,000 .

Each Unit consists of one share of Class A common

stock of the Company, par value $ 0.0001 per share (“Class A common stock”), and one right to receive one-tenth of one share

of Class A common stock upon the consummation of the Company’s initial Business Combination (see Note 6).

A total of $ 127,765,000 of the

net proceeds from the IPO and the sale of the Private Placement Units was placed in a U.S.-based Trust Account maintained by American

Stock Transfer & Trust Company, LLC, acting as trustee.

DEEP MEDICINE ACQUISITION CORP.

7 - Net Loss per Share of Common Stock

Company complies with accounting and disclosure requirements ASC Topic 260, “Earnings per Share”.

Net loss per share of common

stock is computed by dividing net loss by the weighted average number of shares of common stock issued and outstanding for the period,

excluding shares of common stock subject to forfeiture.

During the three months ended June 30, 2022 and 2021, the Company did no t have

any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share

in the earnings (loss) of the Company.

As a result, diluted loss per share of common stock is the same as basic loss per share of common

stock for the period.

of Diluted Loss Per Share of Common Stock

$ ( 154,420 )

Basic and diluted loss

per share – Class A

Basic and diluted loss

per share – Class B

Basic and diluted loss

for basic and diluted earnings per share – Weighted-average shares of Class A common stock issued and outstanding during the

for basic and diluted earnings per share -– Weighted-average shares of Class B common stock issued and outstanding during the

for basic and diluted earnings per share -– Weighted-average shares issued and outstanding during the

MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

8 - Related Party Transactions

Founder Shares

On March 15, 2021, the Sponsor

purchased 2,875,000 shares of the Company’s Class B common stock (the “Founder Shares”) for an aggregate purchase price

of $ 50,000 .

In October 2021, the Company effected

a 0.1 for 1 stock dividend for each share of Class B common stock outstanding (which has been accounted for as a stock split) of 287,500

shares of Class B common stock, which resulted in an aggregate of 3,162,500 shares of Class B common stock outstanding.

All share and

associated amounts have been retroactively restated to reflect the share dividend.

The Founder Shares include an

aggregate of up to 412,500 shares of Class B common stock subject to forfeiture by the Sponsor to the extent that the underwriters’

over-allotment is not exercised in full or in part, so that the number of Founder Shares will collectively represent 20 % of the Company’s

issued and outstanding shares upon the completion of the IPO.

On October 29, 2021, the Underwriters exercised the over-allotment option

As a result, no Founder Shares are subject to forfeiture.

The Sponsor has agreed not to

transfer, assign or sell 50 % of the Founder Shares until the earlier of (i) six months after the date of the consummation of the Business

Combination or (ii) the date on which the closing price of the Company’s Class A common stock equals or exceeds $ 12.50 per share

(as adjusted for stock sub-divisions, stock dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading

day period commencing after the Business Combination and the remaining 50 % of the Founder Shares may not be transferred, assigned or sold

until six months after the date of the consummation of the Business Combination, or earlier, in either case, if, subsequent to the Business

Combination, the Company consummates a liquidation, merger, stock exchange or other similar transaction which results in all of the stockholders

having the right to exchange their shares of common stock for cash, securities or other property.

Private Placement

Concurrently with the closing

of the IPO, the Sponsor and the Underwriters purchased an aggregate of 519,500 Private Placement Units, generating gross proceeds of $ 5,195,000

in aggregate in a private placement.

Each Private Placement Unit will consist of one share of Class A common stock and one right.

right underlying the Private Placement Unit (the "Private Placement Right") will entitle the holder to receive one-tenth of

one share of Class A common stock at the closing of a Business Combination.

The proceeds from the sale of the Private Placement Units

have been added to the net proceeds from the IPO held in the Trust Account.

If the Company does not complete a Business Combination within

the Combination Period, the proceeds from the sale of the Private Placement Units will be used to fund the redemption of the Public Shares

(subject to the requirements of applicable law), and the Private Placements Units and all underlying securities will expire worthless.

The Private Placement Units (including

the underlying Private Placement Rights, the Private Placement Shares and the shares of Class A common stock issuable upon conversion

of the Private Placement Rights) will not be transferable, assignable or salable until 30 days after the completion of the initial Business

Combination (except as described under the section of the IPO prospectus entitled “Principal Stockholders — Restrictions

on Transfers of Founder Shares and Private Placement Units”).

Following such period, the Private Placement Units (including the

underlying Private Placement Rights, the Private Placement Shares and the shares of Class A common stock issuable upon conversion of

the Private Placement Rights) will be transferable, assignable or salable, except that the Private Placement Units will not trade.

Accrued Expenses - Related Parties

As of December 31,

2021, the Company had accrued expenses – related parties in amount of $ 21,000 , of which $ 6,000 was in connection with the

accrued non-cash compensation to the Company’s management and directors.

Pursuant to the executed Offer Letters, the Company

agreed to pay the Company’s Chief Financial Officer $ 5,000 in cash per month starting from August 1, 2020, and the

Company’s officers and directors an aggregate of 300,000 post Business Combination shares within 10 days following the

Business Combination, with the same lock-up restrictions and registration rights as the Founder Shares.

The fair value of this stock

issuance was determined by the fair value of the Company’s Common Stock on the grant date, at a price of $ 0.02 per share.

of December 31, 2021, the accrued expenses related to the cash compensation to the Company’s Chief Financial Officer was

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Note 4 - Related

Party Transactions (Continued)

Loan Payable – Related Party

As of December 31, 2021,

the Company had a loan payable to the Sponsor in amount of up to $ 500,000 with zero interest (the “Loan”).

The Loan is unsecured.

Under no circumstances shall any individual, including but not limited to any officer, director, employee or stockholder of the Company,

be obligated personally for any obligations or liabilities of the Loan.

The proceeds of the Loan are used to pay a portion of the offering

expenses of the IPO.

Expenses - Related Parties

of June 30, 2022 and March 31, 2022, the Company had accrued expenses – related parties in amount of $ 6,000 and $ 21,000 , respectively,

of which $ 6,000 was in connection with the accrued non-cash compensation to the Company’s management and directors.

the executed Offer Letters, the Company agreed to pay the Company’s Chief Financial Officer $ 5,000 in cash per month starting from

August 1, 2020, and the Company’s officers and directors an aggregate of 300,000 post Business Combination shares within 10 days

following a Business Combination, with the same lock-up restrictions and registration rights as the Founder Shares.

The fair value of

this stock issuance was determined by the fair value of the Company’s Common Stock on the grant date, at a price of $ 0.02 per share.

As of June 30, 2022 and March 31, 2022, the accrued expenses related to the cash compensation to the Company’s Chief Financial

Officer was $ 0 and $ 15,000 , respectively.

Payable – Related Party

of June 30, 2022 and March 31, 2022, the Company had a loan payable to the Sponsor in amount of $ 500,000 with zero interest (the “Loan”).

Pursuant to the promissory note between the Company and the Sponsor, the Loan is unsecured, and the Sponsor agrees to fund the Company

in amount of up to $ 500,000 .

Under no circumstances shall any individual, including but not limited to any officer, director, employee

or stockholder of the Company, be obligated personally for any obligations or liabilities of the Loan.

The proceeds of the Loan were

used to pay a portion of the offering expenses of the IPO.

These amounts will be repaid upon completion of an initial Business Combination.

The full amount of $ 500,000 was

outstanding as of December 31, 2021.

Working Capital Loans

In addition, in order to finance

transaction costs in connection with a Business Combination, the Sponsor, an affiliate of the Sponsor, or certain of the Company’s

officers and directors or their affiliates may, but are not obligated to, loan the Company funds as may be required (“Working Capital

If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds

of the Trust Account released to the Company.

Otherwise, the Working Capital Loans would be repaid only out of funds held outside the

Trust Account.

In the event that a Business Combination does not close, the Company 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.

The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s

discretion, up to $1.5 million of such Working Capital Loans may be convertible into private placement-equivalent units at a price of

$ 10.00 per unit at the option of the lender.

Capital Loans

addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor, an affiliate of the Sponsor,

or certain of the Company’s officers and directors or their affiliates may, but are not obligated to, loan the Company funds as

may be required (“Working Capital Loans”).

If the Company completes a Business Combination, the Company would repay the Working

Capital Loans out of the proceeds of the Trust Account released to the Company.

Otherwise, the Working Capital Loans would be repaid

only out of funds held outside the Trust Account.

In the event that a Business Combination does not close, the Company 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.

The Working Capital Loans would either be repaid upon consummation of a Business Combination, without

interest, or, at the lender’s discretion, up to $ 1.5 million of such Working Capital Loans may be convertible into private placement-equivalent

units at a price of $ 10.00 per unit at the option of the lender.

Such units would be identical to the Private Placement Units.

Except for the foregoing, the

terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans.

December 31, 2021, no Working Capital Loans were outstanding.

for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect

to such loans.

As of June 30, 2022 and March 31, 2022, no Working Capital Loans were outstanding.

9 - Commitments and Contingency

Registration Rights

The holders of the Founder Shares,

Private Placement Units (and their underlying securities), the Representative Shares, the Representative Warrants (and their underlying

securities), the 300,000 shares of Class A common stock issuable to the Company’s directors and officers within 10 days following

the Business Combination and any Units that may be issued upon conversion of the Working Capital Loans (and their underlying securities)

will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of

the IPO requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class

A common stock).

The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company

In addition, the holders have certain “piggy-back” registration rights with respect to registration

statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such

securities pursuant to Rule 415 under the Securities Act.

The registration rights agreement does not contain liquidated damages or other

cash settlement provisions resulting from delays in registering the Company’s securities.

The Company will bear the expenses incurred

in connection with the filing of any such registration statements.

Underwriting Agreement

The Company had granted the

Underwriters a 30- day option from the date of

IPO to purchase up to 1,650,000

additional Units to cover over-allotments, if any, at the IPO price less the underwriting discounts and commissions.

Simultaneously upon the closing

of the IPO, the Underwriters exercised the over-allotment option in full.

As such, the Underwriters were paid an underwriting discount

and commission of $ 0.20 per Unit, or $ 2,530,000 in the aggregate payable upon the closing of the IPO, and I-Bankers was entitled to a

business combination marketing fee of $ 4,427,500 in the aggregate, which is held in the Trust Account and payable upon completion of the

Business Combination.

holders of the Founder Shares, Private Placement Units (and their underlying securities), the Representative Shares, the Representative

Warrants (and their underlying securities), the 300,000 shares of Class A common stock issuable to the Company’s directors and

officers within 10 days following the Business Combination and any Units that may be issued upon conversion of the Working Capital Loans

(and their underlying securities) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior

to or on the effective date of the IPO requiring the Company to register such securities for resale (in the case of the Founder Shares,

only after conversion to Class A common stock).

The holders of these securities are entitled to make up to three demands, excluding short

form demands, that the Company register such securities.

In addition, the holders have certain “piggy-back” registration

rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the

Company to register for resale such securities pursuant to Rule 415 under the Securities Act.

The registration rights agreement does

not contain liquidated damages or other cash settlement provisions resulting from delays in registering the Company’s securities.

The Company will bear the expenses incurred in connection with the filing of any such registration statements.

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Company had granted the Underwriters a 30-day option from the date of IPO to purchase up to 1,650,000 additional Units to cover over-allotments,

if any, at the IPO price less the underwriting discounts and commissions.

Simultaneously

upon the closing of the IPO, the Underwriters exercised the over-allotment option in full.

As such, the Underwriters were paid an underwriting

discount and commission of $ 0.20 per Unit, or $ 2,530,000 in the aggregate payable upon the closing of the IPO, and I-Bankers was entitled

to a business combination marketing fee of $ 4,427,500 in the aggregate, which is held in the Trust Account and payable upon completion

of the Business Combination.

10 - Stockholders’ Equity

The Company is authorized to issue

a total of 111,000,000 shares, par value of $ 0.0001 per share, consisting of (a) 110,000,000 shares of common stock, including (i) 100,000,000

shares of Class A common stock, and (ii) 10,000,000 shares of Class B common stock, and (b) 1,000,000 shares of preferred stock (the “Preferred

As of December 31, 2021,

there were 620,700

shares of Class A common stock issued and outstanding, excluding

12,650,000 shares of Class A common stock subject to possible redemption which are presented as temporary

As of December 31, 2021, there

were 3,162,500 shares of Class B common stock issued and outstanding, which such amount having been restated to reflect a 0.1 for 1 stock

dividend for each share of Class B common stock outstanding in October 2021.

As of December 31, 2021, no share

of Preferred Stock was issued or outstanding.

The designations, voting and other rights and preferences of the Preferred Stock may be

determined from time to time by the Company’s board of directors.

Each holder of a right will receive

one-tenth (1/10) of one share of Class A common stock upon consummation of a Business Combination.

In the event the Company will not be

the surviving entity upon completion of the Company’s initial Business Combination, each holder of a public right will automatically

receive the 1/10 share of Class A common stock underlying such public right (without paying any additional consideration);

and each holder

of a Private Placement Right or right underlying Units to be issued upon conversion of the Working Capital Loans will be required to affirmatively

convert its rights in order to receive the 1/10 share of Class A common stock underlying each right (without paying any additional consideration).

If the Company is unable to complete an initial Business Combination within the required time period and public stockholders redeem the

public shares for the funds held in the Trust Account, holders of rights will not receive any such funds in exchange for their rights

and the rights will expire worthless.

The Company will not issue fractional shares upon conversion of the rights.

If, upon conversion

of the rights, a holder would be entitled to receive a fractional interest in a share, the Company will, upon exchange, comply with Section

155 of the Delaware General Corporation Law.

The Company will make the determination of how to treat fractional shares at the time of

its initial Business Combination and will include such determination in the proxy materials that it will send to stockholders for their

consideration of such initial Business Combination.

If the Company is unable to complete

a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of rights

will not receive any of such funds with respect to their rights, nor will they receive any distribution from the Company’s assets

held outside of the Trust Account with respect to such rights, and the rights will expire worthless.

Further, there are no contractual

penalties for failure to deliver securities to the holders of the rights upon consummation of a Business Combination.

Additionally, in no event will

the Company be required to net cash settle the rights, and the rights may expire worthless.

Representative Warrants and Representative Shares

Upon the closing of the IPO, the

Company issued to the Underwriters Representative Warrants, the exercise price of which will be $ 12.00 per Share, and 101,200 Representative

The Representative Warrants shall

be exercisable, in whole or in part, commencing the later of October 26, 2022 and the closing of the Company’s initial Business

Combination and terminating on October 29, 2026.

The Company accounted for the 632,500 warrants as an expense of the IPO resulting in

a charge directly to stockholders’ equity.

Company is authorized to issue a total of 111,000,000 shares, par value of $ 0.0001 per share, consisting of (a) 110,000,000 shares of

common stock, including (i) 100,000,000 shares of Class A common stock, and (ii) 10,000,000 shares of Class B common stock, and (b) 1,000,000

shares of preferred stock (the “Preferred Stock”).

of June 30, 2022 and March 31, 2022, there were 620,700 shares of Class A common stock issued and outstanding, excluding 12,650,000 shares

of Class A common stock subject to possible redemption which are presented as temporary equity.

of June 30, 2022 and March 31, 2022, there were 3,162,500 shares of Class B common stock issued and outstanding.

of June 30, 2022 and March 31, 2022, no shares of Preferred Stock were issued or outstanding.

The designations, voting and other rights

and preferences of the Preferred Stock may be determined from time to time by the Company’s board of directors.

holder of a right will receive one-tenth (1/10) of one share of Class A common stock upon consummation of a Business Combination.

the event the Company will not be the surviving entity upon completion of the Company’s initial Business Combination, each holder

of a public right will automatically receive the 1/10 share of Class A common stock underlying such public right (without paying any

additional consideration);

and each holder of a Private Placement Right or right underlying Units to be issued upon conversion of the

Working Capital Loans will be required to affirmatively convert its rights in order to receive the 1/10 share of Class A common stock

underlying each right (without paying any additional consideration).

If the Company is unable to complete an initial Business Combination

within the required time period and public stockholders redeem the public shares for the funds held in the Trust Account, holders of

rights will not receive any such funds in exchange for their rights and the rights will expire worthless.

The Company will not issue

fractional shares upon conversion of the rights.

If, upon conversion of the rights, a holder would be entitled to receive a fractional

interest in a share, the Company will, upon exchange, comply with Section 155 of the Delaware General Corporation Law.

The Company will

make the determination of how to treat fractional shares at the time of its initial Business Combination and will include such determination

in the proxy materials that it will send to stockholders for their consideration of such initial Business Combination.

the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the

Trust Account, holders of rights will not receive any of such funds with respect to their rights, nor will they receive any distribution

from the Company’s assets held outside of the Trust Account with respect to such rights, and the rights will expire worthless.

Further, there are no contractual penalties for failure to deliver securities to the holders of the rights upon consummation of a Business

Additionally,

in no event will the Company be required to net cash settle the rights, and the rights may expire worthless.

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Representative

Warrants and Representative Shares

the closing of the IPO, the Company issued to the Underwriters Representative Warrants, the exercise price of which will be $ 12.00 per

Share, and 101,200 Representative Shares.

Representative Warrants shall be exercisable, in whole or in part, commencing the later of October 26, 2022 and the closing of the Company’s

initial Business Combination and terminating on October 29, 2026.

The Company accounted for the 632,500 warrants as an expense of the

IPO resulting in a charge directly to stockholders’ equity.

The fair value of Representative Warrants was estimated to be approximately

$ 1,333,482 (or $ 2.11 per warrant) using the Black-Scholes option-pricing model.

The fair value of the Representative Warrants granted to the Underwriters

was estimated as of the date of grant using the following assumptions:

(1) expected volatility of 35 % , (2) risk-free interest rate of

1.18 % and (3) expected life of five years.

The Representative Warrants and the shares of Class A common stock underlying Representative

Warrants have been deemed compensation by FINRA and are therefore subject to a 180 -day lock-up immediately following October 29, 2021

The fair value of the Representative Warrants granted

to the Underwriters was estimated as of the date of grant using the following assumptions:

(1) expected volatility of 35 %, (2) risk-free

interest rate of 1.18 % and (3) expected life of five years .

The Representative Warrants and the shares of Class A common stock underlying

Representative Warrants have been deemed compensation by FINRA and are therefore subject to a 180 -day lock-up immediately following October

29, 2021 pursuant to FINRA Rule 5110(e)(1).

DEEP MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

Note 6 - Stockholders’ Equity (Continued)

Representative Warrants and Representative Shares

The Representative Warrants grants to holders

demand and “piggy back” rights for periods of five and seven years from October 29, 2021.

The Company will bear all fees

and expenses attendant to registering the securities, other than underwriting commissions which will be paid for by the holders

The exercise price and number of shares issuable upon exercise of the Representative Warrants may be adjusted in certain

circumstances including in the event of a stock dividend, or the Company’s recapitalization, reorganization, merger or

consolidation.

However, the Representative Warrants will not be adjusted for issuances of Class A common stock at a price below its

exercise price.

The Underwriters agreed not

to transfer, assign or sell any of the Representative Shares without the Company’s prior written consent until the completion

of the Business Combination.

The Underwriters agreed (i) to waive its redemption rights with respect to such shares in connection

with the completion of the initial Business Combination and (ii) to waive its rights to liquidating distributions from the Trust

Account with respect to the Representative Shares if the Company fails to complete its initial Business Combination within

Representative Warrants grants to holders demand and “piggy back” rights for periods of five and seven years from October

The Company will bear all fees and expenses attendant to registering the securities, other than underwriting commissions which

will be paid for by the holders themselves.

The exercise price and number of shares issuable upon exercise of the Representative Warrants

may be adjusted in certain circumstances including in the event of a stock dividend, or the Company’s recapitalization, reorganization,

merger or consolidation.

However, the Representative Warrants will not be adjusted for issuances of Class A common stock at a price below

its exercise price.

Underwriters agreed not to transfer, assign or sell any of the Representative Shares without the Company’s prior written consent

until the completion of the Business Combination.

The Underwriters agreed (i) to waive its redemption rights with respect to such shares

in connection with the completion of the initial Business Combination and (ii) to waive its rights to liquidating distributions from

the Trust Account with respect to the Representative Shares if the Company fails to complete its initial Business Combination within

Combination Period.

The shares have been deemed compensation by FINRA and are therefore subject to a lock-up for a period of 180

days immediately following October 29, 2021 pursuant to FINRA Rule 5110(e)(1).

The shares have been deemed compensation by FINRA and are therefore subject to a lock-up for a period of 180 days

immediately following October 29, 2021 pursuant to FINRA Rule 5110(e)(1).

11 - Fair Value Measurements

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis at December

31, 2021 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

Fair Value Hierarchy Valuation

Marketable securities held in Trust Account

following table presents information about the Company’s assets that are measured at fair value on a recurring basis at June 30,

2022 and March 31, 2022 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

of Fair Value Hierarchy Valuation

Marketable securities held in Trust

$ 127,876,280

$ 127,760,867

12 – Subsequent Events

July 12, 2022, the Company entered into a definitive Business Combination Agreement (the “ Business Combination Agreement ”)

with Chijet Inc., a Cayman Islands exempted company (together with its subsidiaries, “ Chijet ”), each of the

referenced holders of Chijet’s outstanding shares (collectively, the “ Sellers ”), Chijet Motor Company,

Inc., a Cayman Islands exempted company and wholly-owned subsidiary of Chijet (“ Pubco ”), and Chijet Motor (USA)

Company, Inc., a Delaware corporation and a wholly-owned subsidiary of Pubco (“ Merger Sub ”).

Chijet indirectly

holds an over 85 % interest in Shandong Baoya New Energy Vehicle Co., Ltd., a Chinese company (“ Baoya ”), which

is a producer and manufacturer of electric vehicles.

In addition, Chijet indirectly holds an over 64 % interest in FAW Jilin Automobile

Co., Ltd., a Chinese company (“ FAW Jilin ”), which manufactures and sells traditional fuel vehicles.

The transactions

contemplated by the Business Combination Agreement are referred to herein as the “ Proposed Business Combination ”.

MEDICINE ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

to its terms and conditions, the Business Combination Agreement provides that Company and Chijet will become wholly-owned subsidiaries

of Pubco, a newly formed holding company.

Pursuant to the Business Combination Agreement, subject to the terms and conditions set forth

therein, at the closing of the Proposed Business Combination (the “ Closing ”), (a) Merger Sub will merge with

and into the Company, with the Company continuing as the surviving entity and a wholly-owned subsidiary of Pubco (the “ Merger ”),

and with holders of Company securities receiving substantially equivalent securities of Pubco, and (b) immediately prior to the Merger,

Pubco will acquire all of the issued and outstanding ordinary shares of Chijet (the “ Purchased Shares ”) from

the Sellers in exchange for ordinary shares of Pubco and Chijet shall surrender for no consideration its shares in Pubco, as described

below, with Chijet likewise becoming a wholly-owned subsidiary of Pubco (the “ Share Exchange ”).

of Merger on Company Securities

the effective time of the of the Proposed Business Combination (the “ Effective Time ”):

(i) every issued and

outstanding share of Class A Common Stock, par value $ 0.0001 per share of the Company (“ Common Stock ”) immediately

prior to that Effective Time (other than treasury stock), will be exchanged for one ordinary share, par value $ 0.0001 per share, of Pubco

(“ Ordinary Share ”), following which all shares of the Company’s Common Stock will be canceled and will

cease to exist;

and (ii) each issued and outstanding right of the Company, entitling the registered holder thereof to receive one-tenth

(1/10th) of a share of the Company’s Class A Common Stock upon the consummation by the Company of its initial business combination

shall be issued equivalent shares of Common Stock of the Company, which shall be aggregated per registered holder to the amount of full

shares of Common Stock for which such holder is eligible, and which shall be automatically converted into the number of Pubco Ordinary

Shares that would have been received by the holder thereof if such right had been automatically exercised immediately prior to the Effective

Time in accordance with clause (i) of this paragraph.

In addition, (iii) each share of Class B Common Stock, par value $ 0.0001 per share

(“ Class B Common Stock ”) of the Company will be exchanged for one Pubco Ordinary Share, and (iv) each privately

placed warrant of the Company to acquire Common Stock shall be exchanged for a substantially equivalent warrant to acquire Pubco Ordinary

Shares, in each case pursuant to the Company’s certificate of incorporation and the terms of these securities.

Consideration

total consideration to be paid by Pubco to the Sellers for the Purchased Shares shall be an aggregate number of Pubco’s Ordinary

Shares (the “ Exchange Shares ”) with an aggregate value (the “ Exchange Consideration ”)

equal to the product of (i) 0.851717 and (ii) $ 2,550,000,000 (the latter amount, subject to adjustment as described below, being the

“ Valuation ”), with each Pubco Ordinary Share to be issued to the Sellers valued at a price equal to the price

at which each share of Company’s Common Stock is redeemed pursuant to the redemption by the Company of its public stockholders

in connection with the Company’s initial business combination, as required by its certificate of incorporation, as amended (the

“ Redemption ”).

the sixty (60) day period following the date of the Business Combination Agreement (the “ Due Diligence Period ”),

the Company will undertake a due diligence review of Chijet, Pubco and their subsidiaries and their respective operations and complete

the Company’s determination of the Valuation (the “ Revised Valuation ”).

If the Company determines, in

its reasonable discretion following consultation with its financial advisors, that the Revised Valuation is equal to or greater than

$ 2,295,000,000 (the “ Minimum Valuation ”), then the Exchange Consideration shall be based upon the initial Valuation

of $ 2,550,000,000 .

If the Company determines, in its reasonable discretion following consultation with its financial advisors, that the

Revised Valuation is less than the Minimum Valuation, then for a period of five (5) days following the Company’s delivery of notice

thereof (the “ Negotiation Period ”), the parties will reasonably cooperate to agree on a revised amount of Exchange

Consideration.

If the parties do not agree during the Negotiation Period on a revised amount of Exchange Consideration, the Company will

have the option either to terminate the Business Combination Agreement (as further described below) or to proceed to the Closing with

the Exchange Consideration being based on the Minimum Valuation.

Transactions were not closed as of the date of filing this Quarterly Report on Form 10-Q.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements