Financial Performance - As of March 31, 2023, the company reported a net income of $2,078,069, primarily from interest earned on investments held in the Trust Account of $2,775,554, offset by operating costs of $314,409 and changes in fair value of warrant liabilities of $383,076[110]. - For the three months ended March 31, 2022, the company reported a net income of $2,830,646, with a significant change in fair value of warrant liabilities amounting to $4,503,199[111]. Trust Account and Cash Position - As of March 31, 2023, the Trust Account held investments totaling $47,215,722, which will be utilized to complete a business combination[117]. - The company had cash of $153,346 outside the Trust Account as of March 31, 2023, which will be used for identifying and evaluating target businesses and related due diligence activities[118]. Initial Public Offering - The company completed its Initial Public Offering on March 4, 2021, raising gross proceeds of $300,000,000 from the sale of 30,000,000 Units at $10.00 per Unit[112]. - The company incurred $17,501,346 in Initial Public Offering related costs, including $6,189,014 in underwriting fees[114]. Business Combination and Shareholder Actions - During the Extension Meeting on March 3, 2023, shareholders redeemed 26,298,498 Class A ordinary shares for approximately $269,585,000, impacting the company's ability to consummate a business combination[107]. - The company has until December 4, 2023, to complete a business combination, after which mandatory liquidation will occur if not completed[120]. Accounting Standards and Regulations - ASU 2020-06, effective January 1, 2024, simplifies accounting for certain financial instruments and introduces additional disclosures for convertible debt[129]. - The company is currently assessing the impact of ASU 2020-06 on its financial position, results of operations, or cash flows[129]. - The company has not adopted ASU 2020-06 as of March 31, 2023[129]. - Management believes that no other recently issued accounting standards will have a material effect on the unaudited condensed consolidated financial statements[130]. - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies[131]. Miscellaneous - The company expects to recover an overpayment amount of approximately $887,555 made to redeeming shareholders due to a clerical error[118]. - The company has no long-term debt or off-balance sheet arrangements as of March 31, 2023, and incurs a monthly fee of $10,000 for office space and administrative services[123][122].
Brand Engagement Network Inc.(BNAI) - 2023 Q1 - Quarterly Report