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FTAC Emerald Acquisition Corp.(FLD) - 2023 Q2 - Quarterly Report
FLDFTAC Emerald Acquisition Corp.(FLD)2023-08-09 20:30

Financial Performance - For the three months ended June 30, 2023, the company reported a net income of 1,727,575,drivenbyinterestincomeof1,727,575, driven by interest income of 3,052,686 from investments held in the Trust Account, after accounting for formation and operating costs of 694,546andincometaxprovisionof694,546 and income tax provision of 630,565 [86]. - For the six months ended June 30, 2023, the company achieved a net income of 2,995,434,withinterestincomeof2,995,434, with interest income of 5,749,212, offset by formation and operating costs of 1,567,443andincometaxprovisionof1,567,443 and income tax provision of 1,186,335 [87]. - The company generated non-operating income solely from interest income on marketable securities held in the Trust Account, with no operating revenues expected until after a Business Combination [85]. Trust Account and Business Combination - As of June 30, 2023, the company had cash, investments, and marketable securities in the Trust Account totaling 258,300,436,whichwillbeprimarilyusedtocompleteaBusinessCombination[96].−ThecompanyintendstousefundsheldoutsidetheTrustAccountforidentifyingandevaluatingtargetbusinesses,performingduediligence,andcompletingaBusinessCombination[97].−ThecompanyhasuntilSeptember20,2023,toconsummateaBusinessCombination,afterwhichamandatoryliquidationwilloccurifnotcompleted[99].−ThecompanyhasoutstandingWorkingCapitalLoansof258,300,436, which will be primarily used to complete a Business Combination [96]. - The company intends to use funds held outside the Trust Account for identifying and evaluating target businesses, performing due diligence, and completing a Business Combination [97]. - The company has until September 20, 2023, to consummate a Business Combination, after which a mandatory liquidation will occur if not completed [99]. - The company has outstanding Working Capital Loans of 1,275,000 as of June 30, 2023, which may be repaid from the proceeds of the Trust Account upon completion of a Business Combination [95]. Costs and Expenses - The company incurred 14,181,568inIPOtransactioncosts,including14,181,568 in IPO transaction costs, including 4,973,868 in underwriting fees and 8,704,270indeferredunderwritingfees[92].−Thecompanyincurred8,704,270 in deferred underwriting fees [92]. - The company incurred 180,000 in administrative support service fees for the six months ended June 30, 2023, with 90,000accruedasofJune30,2023[103].−Thecompanyhasaworkingcapitaldeficitof90,000 accrued as of June 30, 2023 [103]. - The company has a working capital deficit of 1,221,589 as of June 30, 2023, excluding franchise tax and income tax payable [94]. Stock and Equity - As of June 30, 2023, 24,869,342 shares of Class A common stock are presented at redemption value as temporary equity [110]. - The company recognizes changes in redemption value immediately and adjusts the carrying value of Class A common stock to equal the redemption value at the end of each reporting period [111]. - The diluted net income (loss) per share of common stock is the same as basic net income (loss) per share due to the exclusion of accretion associated with redeemable shares [112]. Accounting and Internal Controls - The FASB issued ASU No. 2020-06, effective for fiscal years beginning after December 15, 2023, which simplifies accounting for convertible instruments and the diluted earnings per share calculation [113]. - Management does not believe that any recently issued accounting standards will have a material effect on the condensed financial statements [114]. - As of June 30, 2023, the company's disclosure controls and procedures were evaluated as effective by the Certifying Officers [116]. - There were no changes in internal control over financial reporting during the most recent fiscal quarter that materially affected the internal control [118].