Trust Account and Business Combination - The Company extended the initial date for the Trust Account liquidation to February 18, 2024, with a deposit of $125,000 for each one-month extension [90]. - The Sponsor will deposit $50,000 for each one-month extension after February 18, 2024, to continue pursuing a business combination [93]. - The Company plans to enter into a definitive agreement for a business combination no sooner than March 2024 [97]. - The company has until August 18, 2024, to complete a Business Combination, with uncertainty regarding its ability to do so [105]. Nasdaq Compliance Issues - The Company received a notice from Nasdaq indicating non-compliance with the Minimum Total Holders Rule, requiring at least 400 total holders for continued listing [96]. - The Company received a Second Notice from Nasdaq for failing to meet the Market Value Standard, with a minimum requirement of $50 million in Market Value of Listed Securities [99]. - The Company has until October 21, 2024, to regain compliance with the Market Value Standard, or it may face delisting [100]. - The Company requested a hearing to appeal Nasdaq's determination to delist its securities, which will stay the suspension pending the Panel's decision [98]. Financial Performance - For the six months ended June 30, 2024, the company reported a net loss of $44,457 and net income of $85,119, with investment income of $283,084 and $819,427, respectively [104]. - For the six months ended June 30, 2023, the company had net income of $1,643,672, consisting of investment income of $2,756,883 [105]. - Cash used in operating activities for the six months ended June 30, 2024, was $591,410, compared to $752,999 for the same period in 2023 [106]. - Cash provided by investing activities for the six months ended June 30, 2024, was $36,123,240, primarily due to cash withdrawn from the Trust Account [107]. - Cash provided by financing activities for the six months ended June 30, 2024, was $35,548,932, resulting from cash paid for redemptions [107]. - As of June 30, 2024, the Class A common stock subject to possible redemption amounted to $25,206,155, a decrease of $35,326,042 from the previous period [112]. - The company had $476 in cash and no cash equivalents as of June 30, 2024 [106]. - The company does not have any long-term debt or off-balance sheet financing arrangements as of June 30, 2024 [108]. Internal Controls and Risks - The Company has incurred significant costs in pursuit of its initial Business Combination and cannot assure successful capital raising [89]. - The Company is subject to risks associated with being an emerging growth company, impacting its future performance and financial condition [89]. - The company’s disclosure controls and procedures were deemed not effective as of June 30, 2024, due to material weaknesses in internal control over financial reporting [119].
FutureTech II Acquisition (FTII) - 2024 Q2 - Quarterly Report