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EON Resources Inc.(EONR) - 2023 Q1 - Quarterly Report
EONREON Resources Inc.(EONR)2023-05-19 23:24

Financial Position - As of March 31, 2023, the company had cash of 109,287andworkingcapitalof109,287 and working capital of 1,259,233, excluding franchise and income taxes payable[108]. - As of March 31, 2023, the Company had 109,287incashandaworkingcapitaldeficitof109,287 in cash and a working capital deficit of 1,074,617[119]. - As of March 31, 2023, the Trust Account held marketable securities valued at 91,052,778,consistingofU.S.TreasuryBillswithamaturityof180daysorless[113].OperatingPerformance−ForthethreemonthsendedMarch31,2023,thecompanyreportedanetlossof91,052,778, consisting of U.S. Treasury Bills with a maturity of 180 days or less[113]. Operating Performance - For the three months ended March 31, 2023, the company reported a net loss of 177,614, with operating costs of 653,731andinterestincomeof653,731 and interest income of 946,916 from marketable securities held in the Trust Account[110]. - During the three months ended March 31, 2023, cash flows used in operating activities amounted to 271,825,withanetlossof271,825, with a net loss of 177,614[114]. - The Company has incurred significant costs related to financing and acquisition plans and may need to raise additional funds to meet operational expenditures[122]. Cash Flows - The company incurred cash flows used in investing activities of 862,500relatedtothedepositoftheSPACextensionpaymentintotheTrust[115].−ForthethreemonthsendedMarch31,2023,cashflowsprovidedbyfinancingactivitiestotaled862,500 related to the deposit of the SPAC extension payment into the Trust[115]. - For the three months ended March 31, 2023, cash flows provided by financing activities totaled 1,168,000 from the sale of unsecured promissory notes[116]. Business Combination and Financing - The company intends to use substantially all funds held in the trust account to complete its business combination and for working capital of the target business[117]. - The Company may need to obtain additional financing to complete its business combination or to meet obligations post-combination[122]. - The Company entered into a Common Stock Purchase Agreement with White Lion Capital, allowing for the purchase of up to 150,000,000incommonstock[123].ManagementandExperience−Themanagementteamhasanaverageofover40yearsofexperienceintheenergyindustry,positioningthecompanytoidentifyattractiveacquisitionopportunities[103].StockholderApprovalsandExtensions−OnMay11,2023,thestockholdersapprovedanamendmenttoextendtheinitialBusinessCombinationdeadlinetoNovember15,2023,withconditionsforfurtherextensions[119].−TheCompanyreceivedadepositof150,000,000 in common stock[123]. Management and Experience - The management team has an average of over 40 years of experience in the energy industry, positioning the company to identify attractive acquisition opportunities[103]. Stockholder Approvals and Extensions - On May 11, 2023, the stockholders approved an amendment to extend the initial Business Combination deadline to November 15, 2023, with conditions for further extensions[119]. - The Company received a deposit of 862,500 from the Sponsor to extend the Combination period by three months until May 15, 2023[119]. Liabilities and Obligations - The Company has unsecured promissory notes totaling 1,297,000withexistinginvestors,maturingatthefive−yearanniversaryoftheMIPA[132].−TheCompanyhaspaid1,297,000 with existing investors, maturing at the five-year anniversary of the MIPA[132]. - The Company has paid 139,250 to the Sponsor for administrative support services and owes an additional $20,000 as of March 31, 2023[131]. Accounting and Reporting - The Company accounts for warrants as liabilities due to specific terms that do not meet equity classification criteria[135]. - The Company has not had any off-balance sheet arrangements as of March 31, 2023[130].