Financial Performance - For the three months ended June 30, 2023, the company reported a net income of $1,342,399, compared to $908,400 for the same period in 2022, representing a 47.7% increase[131]. - For the six months ended June 30, 2023, the company had a net income of $3,150,065, a decrease of 65.6% from $9,169,276 in the same period of 2022[132]. - The company incurred operating expenses totaling $539,046 for the three months ended June 30, 2023, compared to $387,025 for the same period in 2022, reflecting a 39.2% increase[131]. Financial Position - As of June 30, 2023, the company held $17,256,161 in the Trust Account, approximately $10.94 per share, with an additional $75,489 in cash available for working capital[133]. - As of June 30, 2023, the company had $551,407 in cash held outside the Trust Account, with $475,762 reserved for taxes and dissolution costs[137]. - The company has no long-term debt or capital lease obligations, only a monthly fee of $15,000 for office space and support, which began on October 28, 2021, and was amended to accrue until a business combination or liquidation[142]. - As of June 30, 2023, the Class A common stock subject to possible redemption amounts to $17,096,912, down from $236,385,597 as of December 31, 2022, indicating a significant reduction in temporary equity[147]. Cash Management - Stockholders redeemed 21,422,522 Class A Shares for a total of $222,484,624.02, approximately $10.38 per share, in connection with the extension of the business combination period[128]. - The company has a commitment from the Sponsor for up to $1,000,000 in working capital loans, with $355,000 loaned during the three and six months ended June 30, 2023[140]. - The company intends to use substantially all funds in the Trust Account to complete an initial business combination and may need additional financing to do so[135]. Operational Concerns - The company has not generated any operating revenues to date and relies on interest income from marketable securities[130]. - The company may lack the financial resources to sustain operations for a reasonable period, raising substantial doubt about its ability to continue as a going concern[134]. Risk Management - The company has not engaged in any hedging activities since inception and does not expect to do so in the future, indicating a conservative approach to market risk[155]. - The company has no market or interest rate risk as of June 30, 2023, reflecting a stable financial position[154]. Accounting and Reporting - The company’s critical accounting policies involve estimates and assumptions that could materially differ from actual results, highlighting the importance of accurate financial reporting[144]. - Management does not anticipate any material effects on financial statements from recently issued accounting standards that are not yet effective[154]. - The company’s derivative financial instruments are recorded at fair value, with changes in fair value reported in the statements of operations[148]. - Net income per share is calculated using the two-class method, with no dilutive securities affecting the diluted net income per share as of June 30, 2023[153]. - The company will pay a cash fee of 3.5% of the gross proceeds of the Public Offering to B. Riley Securities, Inc. upon the completion of the initial business combination[143]. - The company has determined that Public Warrants and Private Placement Warrants are derivative instruments, with the Public Warrants valued at fair value using market prices as of June 30, 2023[149].
AltEnergy Acquisition Corp.(AEAEU) - 2023 Q2 - Quarterly Report