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EON Resources Inc.(EONR) - 2023 Q3 - Quarterly Report
EONREON Resources Inc.(EONR)2023-11-13 13:00

Financial Position - As of September 30, 2023, the company had cash of 638,736andworkingcapitalof638,736 and working capital of 4,606,920, excluding franchise and income taxes payable [157]. - As of September 30, 2023, the Trust Account held marketable securities valued at 48,974,196,consistingofU.S.TreasuryBills[164].−AsofSeptember30,2023,thecompanyhad48,974,196, consisting of U.S. Treasury Bills [164]. - As of September 30, 2023, the company had 638,736 in cash and a working capital deficit of 4,606,920[171].−Thecompanyhasnooff−balancesheetarrangementsasofSeptember30,2023[182].OperatingResults−ForthethreemonthsendedSeptember30,2023,thecompanyreportedanetlossof4,606,920 [171]. - The company has no off-balance sheet arrangements as of September 30, 2023 [182]. Operating Results - For the three months ended September 30, 2023, the company reported a net loss of 5,358, with operating costs of 658,742andinterestincomeof658,742 and interest income of 627,932 from marketable securities [159]. - For the nine months ended September 30, 2023, the company had a net loss of 415,775,consistingof415,775, consisting of 1,927,221 in operating costs and 2,417,604ininterestincomefrommarketablesecurities[161].−Thecompanyhasanetlosspershareofcommonstockcalculatedbasedontheweightedaveragenumberofsharesoutstanding,excludingsharessubjecttoforfeiture[190].BusinessOperations−Thecompanyhasnotengagedinanyoperationsorgeneratedrevenuestodate,withactivitiesfocusedonorganizationaltasksandidentifyingatargetcompanyforabusinesscombination[158].−Themanagementteamhasanaverageofover40yearsofexperienceintheenergyindustry,positioningthecompanytoidentifyattractiveacquisitionopportunities[152].FinancingActivities−ThecompanycompleteditsInitialPublicOfferingonFebruary15,2022,raisinggrossproceedsof2,417,604 in interest income from marketable securities [161]. - The company has a net loss per share of common stock calculated based on the weighted average number of shares outstanding, excluding shares subject to forfeiture [190]. Business Operations - The company has not engaged in any operations or generated revenues to date, with activities focused on organizational tasks and identifying a target company for a business combination [158]. - The management team has an average of over 40 years of experience in the energy industry, positioning the company to identify attractive acquisition opportunities [152]. Financing Activities - The company completed its Initial Public Offering on February 15, 2022, raising gross proceeds of 86,250,000 from the sale of 8,625,000 Units [162]. - During the nine months ended September 30, 2023, the company had cash flows provided by investing activities of 42,686,770,primarilyfromcashwithdrawnforredemptionsofcommonstock[166].−Thecompanyincurredcashflowsusedinfinancingactivitiesof42,686,770, primarily from cash withdrawn for redemptions of common stock [166]. - The company incurred cash flows used in financing activities of 40,888,207 during the nine months ended September 30, 2023, including payments for redemptions of common stock [167]. - The company has incurred significant costs in pursuit of its financing and acquisition plans, with a total of 862,500depositedintotheTrustAccountforextensions[171].−Thecompanyhasenteredintounsecuredpromissorynotestotaling862,500 deposited into the Trust Account for extensions [171]. - The company has entered into unsecured promissory notes totaling 3,584,000 with existing investors, maturing at the five-year anniversary of the MIPA [184]. - The company has a Common Stock Purchase Agreement with White Lion Capital, allowing for the purchase of up to 150,000,000incommonstock[175].−ThecompanyisobligatedtofilearegistrationstatementwiththeSECfortheresaleofsharesissuedundertheCommonStockPurchaseAgreement[176].−Thecompanyhaspaid150,000,000 in common stock [175]. - The company is obligated to file a registration statement with the SEC for the resale of shares issued under the Common Stock Purchase Agreement [176]. - The company has paid 169,250 to the Sponsor for administrative support services through September 30, 2023 [183]. - The company may need to raise additional funds to meet operating expenditures and complete its business combination [174]. - The company is required to redeem public shares if a business combination is not completed by November 15, 2023 [172]. Future Plans - The company plans to utilize cash from its Initial Public Offering and other sources for future business combinations, which may significantly dilute existing investors' equity interests [154].