Financial Performance - For the three months ended September 30, 2022, the company reported a net loss of $1,665,771, consisting of operating and formation costs of $2,620,236 and a change in fair value of warrant liabilities of $442,264, offset by interest earned of $1,396,729 [143]. - For the nine months ended September 30, 2022, the company had a net income of $3,933,559, driven by a change in fair value of warrant liabilities of $6,655,331 and interest earned of $1,844,800, after accounting for operating and formation costs of $4,566,572 [144]. Investments and Cash Position - As of September 30, 2022, the company held investments in the Trust Account amounting to $311,295,520, which are intended to be used for completing the Business Combination [151]. - As of September 30, 2022, the company had cash of $349,447 available for operational activities and identifying target businesses [153]. Initial Public Offering - The company generated gross proceeds of $300,000,000 from its Initial Public Offering of 30,000,000 Units at $10.00 per Unit [146]. - The company incurred $17,501,346 in Initial Public Offering related costs, including $6,189,014 of underwriting fees and $10,830,775 of deferred underwriting fees [148]. Business Combination - The company has until March 4, 2023, to consummate a Business Combination, after which a mandatory liquidation may occur if not completed [155]. - The company plans to use substantially all funds in the Trust Account for the Business Combination and subsequent operations of the target business [151]. - The company may incur additional costs in pursuing the Proposed Business Combination, with no assurance of success [139]. Accounting Standards - ASU 2020-06, effective January 1, 2024, simplifies accounting for certain financial instruments and introduces additional disclosures for convertible debt [164]. - The new standard amends diluted earnings per share guidance, requiring the use of the if-converted method for all convertible instruments [164]. - The company is currently assessing the impact of ASU 2020-06 on its financial position, results of operations, or cash flows [164]. - As of September 30, 2022, the company has not adopted ASU 2020-06 [164]. - Management believes that no other recently issued accounting standards will materially affect the condensed consolidated financial statements [165]. Market Risk Disclosures - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies [166].
Brand Engagement Network Inc.(BNAI) - 2022 Q3 - Quarterly Report