Company Operations and Financial Performance - As of June 30, 2023, the company has not commenced any operations and has generated no revenues to date, with all activities related to its formation and the Initial Public Offering [128]. - For the three months ended June 30, 2023, the company reported a net income of $470,894, resulting from $1,047,442 in operating costs and $1,285,554 in trust earnings [129]. - For the six months ended June 30, 2023, the company had a net income of $1,051,665, driven by $3,820,001 in trust earnings, partially offset by $1,541,770 in operating costs [131]. - The company has assessed that it may not have sufficient working capital to sustain operations for at least one year from the issuance date of the financial statement [122]. - The company incurred $454,000 in change in fair value of warrants for the three months ended June 30, 2023 [129]. Initial Public Offering and Trust Account - The company completed its Initial Public Offering on November 1, 2021, raising gross proceeds of $230 million from the sale of 23,000,000 Units at $10.00 per Unit [111]. - The company has a trust account holding $10.20 per Unit sold in the IPO, intended for use in completing a Business Combination or redeeming public shares if not completed within the specified timeframe [114]. - Shareholders redeemed 17,297,209 shares of Class A common stock at a redemption price of approximately $10.40 per share, totaling an aggregate redemption amount of $179,860,588 [117]. - The underwriters are entitled to deferred underwriting commissions of approximately $0.376 per unit, totaling $8,650,000, contingent upon the completion of an Initial Business Combination [135]. - All 23,000,000 common stock sold in the IPO contain a redemption feature, classified outside of permanent equity due to SEC guidance [138]. - The company recognizes changes in redemption value immediately, adjusting the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period [139]. Business Combination and Advisory Services - On April 25, 2023, the company extended the Termination Date to May 1, 2024, allowing for up to nine one-month extensions for completing a Business Combination [116]. - The company will pay a minimum of $150,000 for advisory services upon a Business Combination, with additional payments ranging from $2,000,000 to $6,000,000 for lead information on potential target companies [136]. - The company issued a Promissory Note to the Sponsor for $487,500, which was deposited into the Trust Account to support operations and extensions [119]. Debt and Liabilities - The company has no long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations, or long-term liabilities [133]. - As of June 30, 2023, the company had no off-balance sheet arrangements [142]. Market Conditions and Reporting Status - The company does not believe inflation had a material impact on its business, revenues, or operating results during the reported period [144]. - The company qualifies as an "emerging growth company," allowing it to take advantage of certain exemptions from various reporting requirements [145]. - The company has elected not to opt out of the extended transition period for new or revised financial accounting standards, which may complicate comparisons with other public companies [146]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [147].
Focus Impact Acquisition Corp.(FIACU) - 2023 Q2 - Quarterly Report