NOTE 3 – INITIAL PUBLIC OFFERING

Pursuant to the Initial Public Offering, on September 17, 2021, the Company sold 4,800,000 Units at a price of $5.00 per Unit for total gross proceeds of $24.0 million. The Company incurred offering costs of approximately $3.4 million, consisting of approximately $2.1 million of underwriting fees and expenses and approximately $1.3 million of costs related to the Initial Public Offering for total net proceeds to the Company of approximately $20.6 million.

Each Unit consisted of one share of Common Stock and one Public Warrant. The Common Stock and Public Warrants are listed on The Nasdaq Capital Market under the symbols “KTTA” and “KTTAW,” respectively. Each redeemable Public Warrant entitles the holder to immediately purchase one share of Common Stock at an exercise price of $6.25 per share, and expire five years from issuance.

In connection with the Initial Public Offering, the Company granted the underwriters an option for a period of 45 days to purchase up to an additional 720,000 shares of Common Stock and/or warrants to purchase up to 720,000 shares of Common Stock, less the underwriting discounts and commissions. On September 17, 2021, the underwriters exercised their option to purchase an additional 720,000 Public Warrants at $0.01 per warrant, resulting in proceeds to the Company of approximately $7,200. On October 29, 2021, the underwriters’ option with respect to 720,000 shares of Common Stock lapsed.

The Company classifies each Public Warrant as a liability at its fair value and the Public Warrants were allocated a portion of the proceeds from the issuance of the Units equal to its fair value determined by the Black-Scholes model.