Financial Performance - For the three months ended June 30, 2024, the company reported a net loss of $235,418, with interest income of $194,074 and operating expenses of $387,569 [144]. - For the six months ended June 30, 2024, the company had a net loss of $836,945, consisting of interest income of $512,940 and operating expenses of $1,188,841 [144]. - For the three months ended June 30, 2023, the company achieved a net income of $99,213, with interest income of $2,628,259 and operating expenses of $1,978,653 [145]. - For the six months ended June 30, 2023, the company reported a net income of $1,805,638, with interest income of $5,386,763 and operating expenses of $2,473,736 [145]. - For the six months ended June 30, 2024, cash used in operating activities was $1,785,421, resulting in a net loss of $836,945 [154]. - For the six months ended June 30, 2023, cash used in operating activities was $715,394, with a net income of $1,805,638 [155]. Capital Raising and Expenses - The company raised gross proceeds of $250,000,000 from its initial public offering of 25,000,000 units, with each unit priced at $10.00 [147]. - The company generated gross proceeds of $9,500,000 from the sale of 950,000 private placement units at $10.00 each [148]. - The company incurred offering costs of $14,420,146 for its initial public offering, including $5,000,000 in underwriting fees [150]. Trust Account and Investments - As of June 30, 2024, the accumulated interest income earned on investments held in the Trust Account amounted to $10,219,999, with total amounts withdrawn for tax obligations at $2,674,222 [152]. - As of June 30, 2024, the Company had investments held in the Trust Account of $14,691,717, with approximately $1,265,733 representing interest income available for tax obligations [160]. - The Company intends to use substantially all funds in the Trust Account to complete its business combination, with annual franchise tax obligations estimated at approximately $63,600 [160]. Tax Obligations - The Company has recorded an excise tax payable of $2,497,846 as of June 30, 2024, with an obligation to remit payment by October 31, 2024 [157]. - As of December 31, 2023, approximately $2.1 million of restricted funds remained in the company's operating account for future tax payments [140]. Business Combination and Going Concern - The company has extended the deadline for its initial business combination to December 14, 2024, with a total of up to nine monthly extensions possible [131]. - The company has not generated any operating revenues to date and does not expect to do so until after completing its initial business combination [143]. - Management has raised substantial doubt about the Company's ability to continue as a going concern, with a mandatory liquidation date of December 14, 2024 [164]. Working Capital and Debt - The Company has a working capital deficit of $7,048,091 as of June 30, 2024 [162]. - As of June 30, 2024, there were $1,100,000 in Working Capital Loans outstanding, which may be repaid from the proceeds of the Trust Account if a business combination is completed [163]. - The Company has no long-term debt or off-balance sheet arrangements as of June 30, 2024 [166]. Regulatory Classification - The company is classified as a "smaller reporting company" and is not required to provide detailed market risk disclosures [178].
Athena Technology Acquisition II(ATEK) - 2024 Q2 - Quarterly Report