Financial Performance - As of June 30, 2023, the company reported a net income of $1,673,563, primarily from interest on marketable securities held in the Trust Account, totaling $3,899,411[120]. - The company incurred operating costs and franchise taxes totaling $1,452,265 for the six months ended June 30, 2023[120]. - The company had $69,886,159 in investments held in the Trust Account as of June 30, 2023, with a working capital deficit of $3,567,923[123]. - As of June 30, 2023, the company had $1,267,928 in its operating bank accounts[123]. Capital Structure and Financing - The company completed its IPO on December 15, 2021, raising approximately $287.5 million by issuing 28,750,000 units at $10.00 per unit[114]. - Following a stockholder vote on March 10, 2023, approximately $227.8 million was removed from the trust account for redemptions, leaving 6,630,703 shares of Class A common stock outstanding[115]. - The company expects to need additional capital to meet liquidity needs and may face challenges in obtaining financing on commercially acceptable terms[125]. - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2023[128]. Liquidity and Going Concern - The company has identified substantial doubt about its ability to continue as a going concern due to liquidity issues and the approaching mandatory liquidation[126]. - The company has extended its liquidation date from March 15, 2023, to December 15, 2023, allowing more time to complete a business combination[116]. Regulatory and Compliance - The Company adopted ASU 2016-13 on January 1, 2023, which did not have a material impact on its financial statements[139]. - The Company may be subject to a 1% excise tax on stock repurchases occurring after December 31, 2022, as per the Inflation Reduction Act of 2022[148]. - The excise tax is calculated based on the fair market value of shares repurchased, potentially affecting cash available for business combinations[149]. - The Company does not believe that any recently issued accounting standards would materially affect its financial statements[140]. - The Company has filed various certifications as part of its quarterly report, ensuring compliance with the Sarbanes-Oxley Act[151]. Internal Controls - There were no changes in internal control over financial reporting during the most recent fiscal quarter that materially affected internal control[145]. - The management evaluated the effectiveness of disclosure controls and procedures as of June 30, 2023, concluding they were effective[143]. Legal and Market Risk - There are no legal proceedings currently affecting the Company[147]. - The Company is classified as a smaller reporting company and is not required to disclose certain market risk information[141].
Burtech Acquisition Corp.(BRKHU) - 2023 Q2 - Quarterly Report