Financial Performance - The company had an income of $9,460,263 from April 19, 2021, to December 31, 2021, primarily due to a gain on the change in fair value of warrant liabilities amounting to $10,944,240[329]. - As of December 31, 2021, the company had $1,323,903 in cash and a working capital of $1,267,382[330]. - The company anticipates that cash held outside the trust account will not be sufficient to operate for at least the next 12 months if a Business Combination is not consummated[343]. Initial Public Offering (IPO) - Transaction costs for the initial public offering totaled $16,138,202, with $5,520,000 in underwriting commissions and $9,660,000 in deferred underwriting commissions[324]. - Following the initial public offering, $281,520,000 was deposited in a trust account, which will be invested in U.S. government securities or money market funds[325]. - The underwriters earned a total underwriting discount of $5,520,000, which is 2% of the gross proceeds from the initial public offering[336]. - The company has 15 months from the closing of the initial public offering to complete the initial Business Combination, or it will cease operations and redeem public shares[327]. Financial Obligations and Arrangements - As of December 31, 2021, the company had no off-balance sheet arrangements or long-term debt obligations[333]. - The company incurred $24,193 for office space and administrative services, which was accrued as "Due to related party" as of December 31, 2021[338]. - As of December 31, 2021, 27,600,000 Class A ordinary shares were subject to possible redemption, presented at redemption value as temporary equity[348]. Accounting Standards - The Financial Accounting Standards Board issued ASU 2020-06 to simplify accounting for certain financial instruments, effective January 1, 2022[352]. - ASU 2020-06 eliminates the separation of beneficial conversion and cash conversion features from convertible instruments[352]. - The new standard introduces additional disclosures for convertible debt and freestanding instruments indexed to an entity's own equity[352]. - ASU 2020-06 amends diluted earnings per share guidance, requiring the use of the if-converted method for all convertible instruments[352]. - The company is currently assessing the impact of ASU 2020-06 on its financial position, results of operations, or cash flows[352]. - The company does not believe that any other recently issued accounting standards would have a material effect on its financial statements[353]. Market Risk Disclosures - As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk[354].
Zeo Energy Corporation(ZEO) - 2021 Q4 - Annual Report