Financial Performance - The company reported a net loss of $82,504 for the three months ended March 31, 2024, compared to a net income of $290,779 for the same period in 2023, representing a significant change[7]. - Basic and diluted net loss per share for the three months ended March 31, 2024, is $(0.12), while for the same period in 2023, it was $0.05[46]. - The company generated net cash used in operating activities of $272,052 for the three months ended March 31, 2024, compared to $102,832 for the same period in 2023[11]. - The company incurred general and administrative expenses of $282,344 for the three months ended March 31, 2024[103]. Assets and Liabilities - Total current assets decreased from $23,448,000 as of December 31, 2023, to $17,604,000 as of March 31, 2024, a decline of approximately 25.0%[5]. - Total liabilities increased from $5,262,245 as of December 31, 2023, to $5,537,109 as of March 31, 2024, an increase of about 5.2%[6]. - The accumulated deficit increased from $4,728,997 as of December 31, 2023, to $5,251,161 as of March 31, 2024, indicating a rise of about 11.0%[6]. - The Company has a working capital deficit of $1,361,437 as of March 31, 2024, with only $12,604 in its operating bank account[30]. Trust Account and Financing - A total of $69,479,795 was placed in a Trust Account, invested in U.S. government Treasury bills or money market funds[17]. - The company had cash held in the trust account amounting to $26,235,157 as of March 31, 2024, intended for completing the Initial Business Combination[108]. - The Company may raise up to $1,000,000 from the Sponsor for working capital purposes, with $534,208 already borrowed as of March 31, 2024[20]. - The Company has not made the monthly payment to the Trust Account since October 26, 2023, due to factors unrelated to its operations[86]. Business Combination and Operations - The company has not commenced core operations and will not generate operating revenues until after completing an Initial Business Combination[14]. - The Company intends to extend the deadline for completing a Business Combination to October 18, 2025, with monthly deposits of $25,000 into the Trust Account[31]. - If no Business Combination is completed by October 18, 2025, the Company will face mandatory liquidation[31]. - The Company has the option to extend the Business Combination deadline up to nine times for an additional month each time[31]. Shareholder Information - The company had 2,082,825 shares issued and outstanding as of March 31, 2024, unchanged from December 31, 2023[6]. - Approximately 4,427,969 shares were redeemed at about $10.43 per share, leaving approximately $25 million in the Trust Account[26]. - Following shareholder redemptions, 101,463 Public Shares remained outstanding after an aggregate redemption amount of $25,712,132 at approximately $11.10 per share[87]. Initial Public Offering - The Company raised $60,000,000 in its Initial Public Offering, which was completed on October 18, 2022[15]. - The Company sold 6,000,000 Units at a price of $10.00 per Unit during its Initial Public Offering, resulting in total gross proceeds of $60,000,000[57]. - The Company closed the sale of 845,300 OA Units at $10.00 per unit, generating gross proceeds of $8,453,000 from the Overallotment Offering[16]. - An additional 31,500 units were sold in a private placement at the same price, generating gross proceeds of $315,000[126]. Compliance and Regulatory Matters - The Company received a notice from Nasdaq on December 15, 2023, regarding non-compliance with the minimum market value requirement of $50,000,000 for continued listing[90]. - The Company has filed its Form 10-K for the year ended December 31, 2023, on July 23, 2024, and is taking action plans to regain compliance with Nasdaq listing requirements[97]. Miscellaneous - The fair value of the company's financial instruments approximates their carrying amounts due to their short-term nature[49]. - The company has not recognized any unrecognized tax benefits or accrued interest and penalties related to tax positions as of March 31, 2024[42]. - The company has elected not to opt out of the extended transition period under the JOBS Act, allowing it to adopt new accounting standards at the same time as private companies[34].
Hudson Acquisition I (HUDA) - 2024 Q1 - Quarterly Report