Financial Performance - For the three months ended June 30, 2023, the company reported a net income of $1,727,575, driven by interest income of $3,052,686 from investments in the Trust Account, offset by formation and operating costs of $694,546 and income tax provision of $630,565 [86]. - For the six months ended June 30, 2023, the company achieved a net income of $2,995,434, with interest income of $5,749,212, against formation and operating costs of $1,567,443 and income tax provision of $1,186,335 [87]. - The diluted net income (loss) per share of common stock is the same as the basic net income (loss) per share, as the accretion associated with redeemable shares is excluded from earnings per share calculations [112]. Trust Account and Business Combination - As of June 30, 2023, the company held cash, investments, and marketable securities in the Trust Account totaling $258,300,436, which will be primarily used to complete a Business Combination [96]. - The company has until September 20, 2023, to consummate a Business Combination, after which a mandatory liquidation will occur if not completed [99]. - The company generated non-operating income solely from interest on marketable securities held in the Trust Account, with no operating revenues expected until after a Business Combination [85]. - The company plans to use funds held outside the Trust Account for identifying and evaluating target businesses, performing due diligence, and related operational expenses [97]. - The company has outstanding Working Capital Loans of $1,275,000 as of June 30, 2023, which may be repaid from the Trust Account proceeds upon completion of a Business Combination [95]. IPO and Transaction Costs - The company incurred $14,181,568 in IPO transaction costs, including $4,973,868 in underwriting fees and $8,704,270 in deferred underwriting fees [92]. Working Capital and Financial Position - The company has a working capital deficit of $1,221,589 as of June 30, 2023, excluding franchise tax and income tax payable [94]. Shareholder Equity and Redemption - As of June 30, 2023, 24,869,342 shares of Class A common stock are presented at redemption value as temporary equity, reflecting the potential for mandatory redemption [110]. - The company recognizes changes in redemption value immediately, adjusting the carrying value of Class A common stock to equal the redemption value at the end of each reporting period [111]. - The company has two classes of shares, Class A and Class B, with earnings and losses shared pro rata between them [112]. - The company has not considered the effect of warrants in the calculation of diluted net income (loss) per share, as their exercise is contingent upon future events [112]. Accounting Standards and Internal Controls - The FASB issued ASU No. 2020-06, effective for fiscal years beginning after December 15, 2023, which simplifies accounting for convertible instruments and may impact the company's financial position [113]. - Management does not anticipate that any recently issued accounting standards will have a material effect on the condensed financial statements [114]. - As of June 30, 2023, the company's disclosure controls and procedures were evaluated as effective by the Certifying Officers [116]. - There were no changes in internal control over financial reporting during the most recent fiscal quarter that materially affected the company's internal control [118]. - The company does not expect its disclosure controls and procedures to prevent all errors and instances of fraud, acknowledging inherent limitations [117]. Administrative Expenses - The company incurred $180,000 in administrative support service fees for the six months ended June 30, 2023, with $90,000 accrued as of June 30, 2023 [103].
FTAC Emerald Acquisition Corp.(FLDDU) - 2023 Q2 - Quarterly Report