Financial Performance - As of June 30, 2023, the company reported a net income of $798,325 for the three months ended June 30, 2023, and $2,406,359 for the six months ended June 30, 2023, driven by $1,342,192 and $3,252,490 in interest income, respectively[134]. - As of June 30, 2023, the company had cash outside the Trust Account of only $84, indicating limited working capital availability[137]. - As of June 30, 2023, $49,464,956 of the IPO proceeds and interest earned were held in the Trust Account[138]. - As of June 30, 2023, the company had no outstanding borrowings under the Working Capital Loan, down from $449,765 as of December 31, 2022[139]. - The company has no off-balance sheet arrangements as of June 30, 2023, and no long-term debt or lease obligations[144]. IPO and Fundraising - The company completed its IPO on November 8, 2021, raising gross proceeds of $172,500,000, with $175,950,000 placed in a Trust Account for future business combinations[118][119]. - The company raised gross proceeds of $172,500,000 from the sale of 17,250,000 Units at $10.00 per Unit during the IPO[138]. Business Combinations and Agreements - The company entered into an Investment Agreement with Sunorange on April 27, 2023, which included the acquisition of 3,557,813 Class B ordinary shares and 6,160,000 Private Placement Warrants[120]. - The company announced a Business Combination Agreement with Scage on August 21, 2023, with a post-combination valuation of $1.0 billion[130]. - The company has until May 8, 2024, to complete a Business Combination, or it will commence automatic winding up and liquidation[142][143]. - The company issued an Extension Note of up to $1,200,000 to the Sponsor, with a monthly payment of $100,000 until the completion of an initial Business Combination[126]. - Following the conversion of shares, the Sponsor and certain designees of Sunorange hold approximately 47.4% of the outstanding Class A ordinary shares[129]. - A third-party consultant was engaged on August 29, 2023, with a contingent fee of 0.5% of the implied enterprise value of the target if a Business Combination is consummated[147]. - The company engaged EarlyBirdCapital to assist with the initial Business Combination, agreeing to pay a fee of 1.75% of the gross proceeds of the IPO upon consummation[145]. Compliance and Regulatory Matters - The company received a deficiency notice from Nasdaq on September 12, 2023, regarding non-compliance with listing standards due to a late filing of its Quarterly Report[131]. - The company has not commenced any operations and will not generate operating revenues until after completing an initial Business Combination[133]. Accounting and Financial Standards - The company is assessing the impact of new accounting standards, including ASU 2020-06 and ASU 2022-03, which may affect its financial position[155][156]. - The company has recognized the accretion from initial book value to redemption amount for Class A ordinary shares immediately upon the closing of the IPO[150]. - The company does not expect to engage in any hedging activities regarding market risk[163].
Finnovate Acquisition Corp.(FNVTU) - 2023 Q2 - Quarterly Report