Athena Technology Acquisition II(ATEK) - 2021 Q4 - Annual Report

Financial Performance - The company had a net loss of $118,735 for the year ended December 31, 2021, primarily due to operating expenses of $65,270 and Delaware franchise taxes of $67,995, offset by interest income of $823[292]. - The company incurred a net loss of $118,735 for the period from May 20, 2021, to December 31, 2021, resulting in a basic and diluted net loss per share of $(0.01) for both Class A and Class B common stock[331]. - The company’s accumulated deficit as of December 31, 2021, was $(7,514,864)[327]. - The total net loss allocation was $(22,921) for Class A and $(95,813) for Class B common stock[383]. - The total income tax benefit for the year ended December 31, 2021, was $14,106, which included a deferred expense of $27,813[371]. Initial Public Offering (IPO) - The initial public offering (IPO) generated gross proceeds of $250,000,000 from the sale of 25,000,000 units, with each unit priced at $10.00[294]. - The company raised an additional $3,750,000 from the over-allotment option exercised by underwriters[344]. - Offering costs for the IPO amounted to $14,213,896, including $5,000,000 in underwriting fees and $8,956,250 in deferred underwriting fees[365]. - The Company sold 25,375,000 Units at a price of $10.00 per Unit during the IPO, generating gross proceeds of $253,750,000[386]. Cash and Investments - As of December 31, 2021, the company had investments held in the Trust Account amounting to $256,288,315, which will be used to complete the initial business combination[297]. - Cash used in operating activities for the year ended December 31, 2021, was $34,640, while net cash provided by financing activities was $257,848,604[296]. - The company has cash of $1,526,464 outside the Trust Account, intended for identifying and evaluating target businesses[298]. - The company had cash and cash equivalents of $1,526,464 at the end of the period[338]. - As of December 31, 2021, the assets held in the Trust Account were valued at $256,288,315 in U.S. Treasury Securities[408]. Liabilities and Obligations - As of December 31, 2021, the company reported total liabilities of $9,661,595, which includes a deferred underwriting fee payable of $8,956,250[325]. - The company has no long-term debt, capital lease obligations, or long-term liabilities as of December 31, 2021[310]. - The total deferred underwriting fee is $8,956,250, which will be payable only if the Company completes a Business Combination[394]. - The company may need to seek additional financing if the cash portion of the purchase price for a business combination exceeds the available funds in the Trust Account[303]. Business Operations - The company has not commenced any operations and will not generate operating revenues until after completing a business combination[342]. - The company has agreed to pay its Sponsor $10,000 per month for office space and administrative services[305]. - The company expects to incur approximately $400,000 for legal, accounting, and due diligence expenses related to business combinations[301]. - The Company completed its IPO, which alleviated prior liquidity concerns, allowing it to sustain operations for at least one year from the financial statement issuance date[358]. Stock and Warrants - The common stock subject to possible redemption is valued at $10.10 per share, totaling $256,287,500 for 25,375,000 shares[326]. - The Company issued 12,687,500 Public Warrants and 953,750 Private Placement Warrants as of December 31, 2021[399]. - The Company has the option to issue up to 1,000,000 shares of preferred stock, but none were issued as of the reporting date[396]. - The Company has determined that its warrant agreements qualify for equity accounting treatment[383]. - Warrants may be redeemed at a price of $0.01 per Warrant if the last sale price of common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period[402]. Compliance and Accounting - The financial statements were audited and presented fairly in all material respects, in conformity with GAAP[320]. - The Company is classified as an emerging growth company, allowing it to defer compliance with new or revised financial accounting standards[360]. - The Company has established a full valuation allowance of $13,707 against deferred tax assets due to uncertainty regarding future realization[375]. - The Company has determined there were no subsequent events requiring adjustment or disclosure after the balance sheet date[409].