Finnovate Acquisition Corp.(FNVTU) - 2022 Q2 - Quarterly Report

Initial Public Offering - 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[111]. - The trust account held $176,216,362 of the initial public offering proceeds and interest earned as of June 30, 2022[111]. - The company has engaged EarlyBirdCapital as an advisor for the initial business combination, with a cash fee of 3.5% of the gross proceeds of the initial public offering payable upon consummation[119]. Financial Performance - As of June 30, 2022, the company reported a net income of $37,357 for the three months ended June 30, 2022, and a net loss of $123,193 for the six months ended June 30, 2022[108]. - The company incurred $387,757 in formation, general, and administrative expenses for the six months ended June 30, 2022[108]. - The company reported a net loss per ordinary share, calculated by dividing net loss by the weighted average number of ordinary shares outstanding during the period[124]. - Diluted loss per share is the same as basic loss per share for the period presented, as the effect of warrants is considered anti-dilutive[125]. Cash and Working Capital - The company had cash outside the trust account of $604,188 available for working capital needs as of June 30, 2022[110]. - The company has outstanding borrowings of $449,765 under a working capital loan as of June 30, 2022[112]. - The company expects to incur approximately $280,000 for legal, accounting, and other expenses associated with structuring and negotiating business combinations prior to the initial business combination[113]. Business Combination and Risks - If the company does not consummate a business combination before May 8, 2023, it will commence automatic winding up, dissolution, and liquidation[116]. - Various factors, including economic uncertainty and geopolitical instability, may adversely affect the company's results of operations and ability to complete an initial business combination[131]. Debt and Obligations - The company has no long-term debt or capital lease obligations as of June 30, 2022[118]. Accounting Standards and Regulations - 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 after December 15, 2023[126]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[128]. - The company may not be required to provide certain disclosures or independent attestation reports for a period of five years following its initial public offering[130]. Market and Interest Rate Risk - As of June 30, 2022, the company was not subject to any market or interest rate risk, with net proceeds from the IPO invested in U.S. government treasury obligations[132]. - The company has not engaged in any hedging activities since inception and does not expect to do so in the future[133].