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EF Hutton Acquisition I(EFHT) - 2023 Q3 - Quarterly Report
EFHTEF Hutton Acquisition I(EFHT)2023-12-04 16:00

Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of 221,388,withoperatingcostsamountingto221,388, with operating costs amounting to 614,235[146]. - As of September 30, 2023, the company had a working capital deficit of 3,196,054[153].−Thecompanyhasnotgeneratedanyrevenuestodateanddoesnotexpecttodosountilaftercompletingabusinesscombination[145].−Netincome(loss)percommonstockiscomputedbydividingnetlossbytheweightedaveragenumberofcommonstockoutstandingfortheperiod[165].InitialPublicOffering−ThecompanycompleteditsInitialPublicOfferingonSeptember13,2022,raisinggrossproceedsof3,196,054[153]. - The company has not generated any revenues to date and does not expect to do so until after completing a business combination[145]. - Net income (loss) per common stock is computed by dividing net loss by the weighted average number of common stock outstanding for the period[165]. Initial Public Offering - The company completed its Initial Public Offering on September 13, 2022, raising gross proceeds of 115,000,000 from the sale of 11,500,000 units at 10.00perunit[139].−Thecompanyincurred10.00 per unit[139]. - The company incurred 4,950,750 in initial public offering related costs, including 4,025,000indeferredunderwritingfees[141].BusinessCombination−AmergeragreementwasenteredintoonMarch3,2023,withHumbleImportsInc.,whichwillresultinHumblebecomingawholly−ownedsubsidiaryofthecompany[142].−Thecompanyplanstoissue25,100,000sharesofcommonstockandacashpaymentof4,025,000 in deferred underwriting fees[141]. Business Combination - A merger agreement was entered into on March 3, 2023, with Humble Imports Inc., which will result in Humble becoming a wholly-owned subsidiary of the company[142]. - The company plans to issue 25,100,000 shares of common stock and a cash payment of 2,000,000 in connection with the merger with Humble[143]. - The company has until December 13, 2023, to complete a business combination, or until March 13, 2024, if an extension is granted[156]. - The company may need to raise additional capital through loans or investments to finance transaction costs related to the business combination[155]. Financial Position - As of September 30, 2023, the company had marketable securities in its trust account totaling 37,746,019,including37,746,019, including 2,150,284 of interest income[151]. - The company classifies public shares subject to redemption outside of permanent equity due to the redemption provisions not being solely within its control[163]. - The company recognizes changes in redemption value immediately and adjusts the carrying value of redeemable shares to equal the redemption value at the end of each reporting period[164]. Accounting Policies - The company adopted ASU No. 2020-06 upon its incorporation, which simplifies the accounting for convertible instruments, with no material impact on the financial statements[166]. - The company adopted ASU 2016-13 on January 1, 2023, which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected, with no material impact on its financial statements[167]. Market Conditions - The company does not believe that inflation had a material impact on its business, revenues, or operating results during the period presented[170]. - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from various reporting requirements[171]. - The company has elected not to opt out of the extended transition period for new or revised financial accounting standards, allowing it to adopt standards at the same time as private companies[172]. - The company is a smaller reporting company and is not required to provide certain market risk disclosures[173].