flyExclusive(FLYX) - 2023 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2023, the company reported a net loss of $980,092, which included $1,961,891 in interest earned on marketable securities held in the Trust Account[171]. - For the six months ended June 30, 2023, the company had a net income of $515,250, primarily from $4,383,781 in interest earned on marketable securities, offset by $1,654,252 in formation and operating costs[172]. - As of June 30, 2023, the company had approximately $644,739 in its operating bank account and a working capital deficit of approximately $6,554,260[175]. - The company has not generated any operating revenues to date and does not expect to do so until after the completion of its initial business combination[170]. Capital Structure and Financing - The company completed its initial public offering on May 28, 2021, raising gross proceeds of $225 million from the sale of 22,500,000 units at $10.00 per unit[163]. - The total principal amount of the Bridge Notes issued by LGM is $85 million, with a 10% annual interest rate, to be used primarily for acquiring additional aircraft[169]. - The company has incurred significant costs related to its acquisition plans and may need to raise additional capital through loans or investments from its Sponsor or third parties[180]. - The company has a mandatory liquidation date approaching, raising substantial doubt about its ability to continue as a going concern if a business combination is not completed[182]. Equity and Derivatives - All Class A common stock sold in the IPO contains a redemption feature, which requires it to be classified outside of permanent equity[185]. - The Company evaluates its financial instruments to determine if they are derivatives, with both Public Warrants and Private Placement Warrants classified as derivative instruments[188]. Taxation - The Company accounts for income taxes under ASC 740, recognizing deferred tax assets and liabilities for expected future tax benefits from tax loss and credit carryforwards[189]. - The United States is identified as the only "major" tax jurisdiction, with no expected material change in unrecognized tax benefits over the next twelve months[190]. Accounting Standards - As of June 30, 2023, the Company did not have any off-balance sheet arrangements[192]. - Management does not believe that recently issued accounting standards will materially affect the condensed financial statements[191]. Business Structure - The company entered into an Equity Purchase Agreement on October 17, 2022, which will result in the organization of PubCo in an Up-C structure following the business combination[165].