IPO and Trust Account - The company completed its initial public offering on November 8, 2021, selling 17,250,000 public units at $10.00 per unit, generating gross proceeds of $172,500,000[109]. - Following the IPO, the company placed $175,950,000 in a trust account, invested in U.S. government securities with a maturity of 180 days or less[105]. Financial Performance - For the three months ended March 31, 2022, the company reported a net loss of $160,730, primarily due to formation and administrative expenses[107]. - As of March 31, 2022, the company had cash of $760,526 available for working capital needs, with the majority of funds held in the trust account[108]. - As of March 31, 2022, the company had $449,765 in outstanding borrowings under a working capital loan[110]. Business Combination and Expenses - The company expects to incur approximately $280,000 in legal and accounting expenses related to business combinations prior to the initial business combination[111]. - If the company does not complete a business combination by May 8, 2023, it will commence automatic winding up and liquidation[113]. - The company has engaged EarlyBirdCapital as an advisor for the initial business combination, with a fee of 3.5% of the gross proceeds of the IPO payable upon consummation[116]. Liquidity and Financial Position - The company anticipates that its liquidity requirements will include approximately $841,000 for miscellaneous expenses and reserves, including D&O insurance[111]. - The company has no long-term debt or capital lease obligations as of March 31, 2022[115]. Regulatory and Accounting Standards - The company is assessing the impact of ASU No. 2020-06 on its financial position, results of operations, or cash flows, effective for smaller reporting companies for fiscal years beginning after December 15, 2023[123]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[125]. - The company may not be required to provide an independent registered public accounting firm's attestation report on internal controls over financial reporting for five years following its initial public offering[126]. Risks and Market Conditions - Various factors such as economic downturns, inflation, and geopolitical instability could adversely affect the company's results of operations and ability to complete an initial business combination[127]. - As of March 31, 2022, the company was not subject to any market or interest rate risk, with IPO proceeds invested in U.S. government treasury obligations[128]. - The company has not engaged in any hedging activities since inception and does not expect to do so in the future[130].
Finnovate Acquisition Corp.(FNVTU) - 2022 Q1 - Quarterly Report