Mountain Crest Acquisition Corp. V(MCAGU) - 2022 Q1 - Quarterly Report

Part I. Financial Information Item 1. Financial Statements Presents unaudited condensed financial statements for Mountain Crest Acquisition Corp. V, reflecting its status as a blank check company with no operations and a net loss Condensed Balance Sheets Total assets were $69.45 million, primarily trust investments, with $2.18 million liabilities and a $1.72 million stockholders' deficit Condensed Balance Sheet Summary (as of March 31, 2022 vs. December 31, 2021) | Metric | March 31, 2022 (Unaudited) ($) | December 31, 2021 ($) | | :--- | :--- | :--- | | Assets | | | | Cash | $347,243 | $474,538 | | Investments held in Trust Account | $69,006,649 | $69,000,843 | | Total Assets | $69,453,453 | $69,572,800 | | Liabilities & Stockholders' Deficit | | | | Total Liabilities | $2,177,832 | $2,175,299 | | Common stock subject to possible redemption | $69,000,000 | $69,000,000 | | Total Stockholders' Deficit | ($1,724,379) | ($1,602,499) | | Total Liabilities and Stockholders' Deficit | $69,453,453 | $69,572,800 | Condensed Statement of Operations The company reported a net loss of $121,880 for the three months ended March 31, 2022, primarily due to administrative expenses Statement of Operations (Three Months Ended March 31, 2022) | Item | Amount ($) | | :--- | :--- | | General and administrative expenses | $105,728 | | Franchise tax | $23,100 | | Loss from operations | ($128,828) | | Interest earned on investments held in Trust Account | $6,948 | | Net loss | ($121,880) | Condensed Statement of Changes in Stockholders' Deficit Stockholders' deficit increased from $1.60 million to $1.72 million due to the $121,880 net loss for the period - The stockholders' deficit increased from ($1,602,499) on January 1, 2022, to ($1,724,379) on March 31, 2022, with the change entirely attributable to the net loss of $121,880[16] Condensed Statement of Cash Flows Net cash used in operating activities was $128,437, resulting in a $127,295 decrease in cash, ending at $347,243 Cash Flow Summary (Three Months Ended March 31, 2022) | Activity | Amount ($) | | :--- | :--- | | Net cash used in operating activities | ($128,437) | | Net cash provided by investing activities | $1,142 | | Net Change in Cash | ($127,295) | | Cash – Beginning of period | $474,538 | | Cash – End of period | $347,243 | Notes to Condensed Financial Statements Detailed notes explain the company's SPAC formation, $69 million IPO proceeds in trust, related party transactions, deferred fees, and going concern uncertainty - The company is a blank check company formed to effect a business combination and has not commenced any operations, with all activity related to its formation and IPO[22][23] - Following its IPO and the full exercise of the over-allotment option, the company placed a total of $69,000,000 into a trust account[27] - Management has determined that the mandatory liquidation if a business combination is not consummated by the deadline (November 16, 2022, with possible extensions) raises substantial doubt about the Company's ability to continue as a going concern[42] - The company has a deferred underwriting fee of $2,070,000 payable from the Trust Account only upon completion of a Business Combination[84] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial condition, reporting a $121,880 net loss and acknowledging going concern risk due to the business combination deadline - The company's only activities since inception have been organizational and preparing for its Initial Public Offering, with no operating revenues generated to date[100] Q1 2022 Financial Results | Metric | Amount ($) | | :--- | :--- | | Net Loss | $121,880 | | General and administrative expenses | $128,828 | | Interest earned on Trust Account | $6,948 | - As of March 31, 2022, the company had $347,243 in cash held outside the Trust Account for working capital purposes[108] - A mandatory liquidation will occur if a Business Combination is not consummated by November 16, 2022, which raises substantial doubt about the company's ability to continue as a going concern[111] Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk The company faces minimal market or interest rate risk due to short-term investments in U.S. government treasury obligations - The company is not subject to any material market or interest rate risk as of March 31, 2022[122] - Funds in the Trust Account are invested in short-term U.S. government treasury obligations or money market funds, minimizing exposure to interest rate fluctuations[122] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - The company's CEO and CFO concluded that disclosure controls and procedures were effective as of December 31, 2021[125] - There were no material changes to the company's internal control over financial reporting during the most recent fiscal quarter[126] Part II. Other Information Item 1. Legal Proceedings The company reports no legal proceedings - The company has no legal proceedings to report[128] Item 1A. Risk Factors No material changes to previously disclosed risk factors in the Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K[128] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Details IPO and private placement proceeds, with $69 million placed into a trust account from unit sales - The company consummated its IPO of 6,000,000 units at $10.00 per unit on November 16, 2021[129] - The underwriters fully exercised their over-allotment option for 900,000 additional units, and with associated private placements, a total of $69,000,000 was placed in the trust account[130][131] - Total offering costs included $1,380,000 in underwriting discounts, $1,640,361 in other expenses, and a deferred underwriting commission of $2,070,000[132] Item 3. Defaults Upon Senior Securities The company reports no defaults upon senior securities - None[133] Item 4. Mine Safety Disclosures The company reports no mine safety disclosures - None[133] Item 5. Other Information The company reports no other information - None[133] Item 6. Exhibits Lists exhibits filed, including CEO and CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and XBRL Instance Documents[135] Part III. Signatures