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ESH Acquisition (ESHA) - 2024 Q3 - Quarterly Report
ESHAESH Acquisition (ESHA)2024-11-14 02:39

Financial Performance - For the three months ended September 30, 2024, the company reported a net income of 1,059,413,drivenbyinterestincomeof1,059,413, driven by interest income of 1,588,812 from investments held in the Trust Account[103]. - For the nine months ended September 30, 2024, the company achieved a net income of 3,218,561,withinterestincometotaling3,218,561, with interest income totaling 4,724,702[106]. - As of September 30, 2024, the company had investments in the Trust Account amounting to 123,794,068,including123,794,068, including 7,069,068 of interest income[112]. IPO and Related Costs - The company completed its IPO on June 16, 2023, raising gross proceeds of 115,000,000fromthesaleof11,500,000Unitsat115,000,000 from the sale of 11,500,000 Units at 10.00 per Unit[108]. - The company incurred 5,368,092inIPO−relatedcosts,whichincludedacashunderwritingdiscountof5,368,092 in IPO-related costs, which included a cash underwriting discount of 2,300,000[109]. Liquidity and Going Concern - As of September 30, 2024, the company had cash of 1,460,218availableforoperationalactivitiesandduediligenceonpotentialtargetbusinesses[114].−ThecompanyhasdeterminedthatiftheInitialBusinessCombinationdoesnotoccurbyDecember16,2024,itmayfacemandatoryliquidation,raisingsubstantialdoubtaboutitsabilitytocontinueasagoingconcern[117].−Thecompanyhasnolong−termdebtoroff−balancesheetarrangementsasofSeptember30,2024[118].UseofFunds−ThecompanyplanstousesubstantiallyallfundsintheTrustAccounttocompletetheInitialBusinessCombinationandforworkingcapitalofthetargetbusiness[113].AccountingandInternalControls−ThecompanyhasidentifiedacriticalaccountingestimaterelatedtoClassAcommonstocksubjecttopossibleredemption,amountingto1,460,218 available for operational activities and due diligence on potential target businesses[114]. - The company has determined that if the Initial Business Combination does not occur by December 16, 2024, it may face mandatory liquidation, raising substantial doubt about its ability to continue as a going concern[117]. - The company has no long-term debt or off-balance sheet arrangements as of September 30, 2024[118]. Use of Funds - The company plans to use substantially all funds in the Trust Account to complete the Initial Business Combination and for working capital of the target business[113]. Accounting and Internal Controls - The company has identified a critical accounting estimate related to Class A common stock subject to possible redemption, amounting to 122,820,627 as of September 30, 2024[125]. - Management believes that recently issued accounting standards will not materially affect the unaudited condensed financial statements[126]. - Disclosure controls and procedures were evaluated as effective at a reasonable assurance level as of September 30, 2024[127]. - No changes in internal control over financial reporting occurred during the fiscal quarter of 2024 that materially affected internal controls[128]. Legal and Risk Factors - There are no legal proceedings reported by the company[130]. - No material changes to risk factors have been disclosed since the Annual Report on Form 10-K[130].