Financial Performance - For the three months ended June 30, 2024, the company reported a net loss of $49,619, with operating expenses of $455,763 and interest income of $406,144[164]. - For the six months ended June 30, 2024, the company had a net income of $192,476, consisting of $969,442 in interest income offset by $776,966 in operating expenses[169]. - The net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of Ordinary Shares outstanding during the period[191]. - The diluted income (loss) per share is the same as basic income (loss) per share for the period presented due to the exclusion of Warrants from the calculation[193]. Business Combination and Agreements - The company entered into a Business Combination Agreement with Scage on August 21, 2023, which was unanimously approved by the Board of Directors[162]. - The aggregate consideration to shareholders in the Scage Business Combination was reduced from $1,000,000,000 to $800,000,000[142]. - 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[183]. - The company has until November 8, 2024, to complete a Business Combination, or it will commence automatic liquidation[179]. Shareholder Activity - Shareholders redeemed 2,374,826 Class A Ordinary Shares for approximately $11.33 per share, totaling a redemption value of approximately $26,907,976[152]. - The 2024 Extension was approved with 7,997,433 Ordinary Shares present, representing approximately 88.02% of the total shares outstanding[151]. Cash and Trust Account - As of June 30, 2024, the Trust Account held $25,736,479 from the Initial Public Offering proceeds and interest earned[171]. - The company had cash outside the Trust Account of $35,523 available for working capital needs as of June 30, 2024[168]. - As of June 30, 2024, a total of $1,275,000 has been deposited into the Trust Account to support the 2023 and 2024 Extensions[150]. Debt and Promissory Notes - The company issued a May 2024 Promissory Note for up to $225,000 to the Sponsor, with monthly payments of $37,500 until the completion of an initial Business Combination[149]. - The company issued a November 2023 Promissory Note for up to $1,500,000, with an outstanding balance of $974,210 as of June 30, 2024[175]. - As of June 30, 2024, the outstanding balance of the June 2023 Promissory Note was $800,000, with no interest accrued[158]. - The company had no outstanding borrowings under the Working Capital Loan as of June 30, 2024[173]. Regulatory and Accounting Standards - The SEC adopted new rules for SPACs effective July 1, 2024, which may materially affect the company's ability to negotiate and complete its initial Business Combination[140]. - The company adopted ASU 2020-06 on January 1, 2024, with no material impact on financial position, results of operations, or cash flows[194]. - ASU 2022-03, effective for the company in fiscal years beginning after December 15, 2023, introduces new disclosure requirements for equity securities subject to contractual sale restrictions[195]. - The company is evaluating the impact of ASU 2023-09, which enhances income tax disclosures, effective for annual periods beginning after December 15, 2024[196]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[197]. - The company may rely on reduced reporting requirements provided by the JOBS Act for a period of five years following the completion of its Initial Public Offering[199]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[200]. IPO and Proceeds - The company completed the sale of 15,000,000 Units at $10.00 per Unit during its Initial Public Offering, generating gross proceeds of $150,000,000[137]. - The company completed the sale of 7,900,000 Private Placement Warrants at $1.00 per Warrant, generating gross proceeds of $7,900,000[137]. - The company recognizes the accretion from initial book value to redemption amount immediately upon the closing of the Initial Public Offering[190].
Finnovate Acquisition Corp.(FNVTU) - 2024 Q2 - Quarterly Report