Financial Performance - For the three months ended June 30, 2024, the company reported a net loss of $95,272, primarily due to operating expenses of $277,662 and franchise taxes of $50,000, offset by interest income of $258,639 [152]. - For the six months ended June 30, 2024, the company had a net loss of $165,432, with operating expenses totaling $549,654 and interest income of $519,320 [153]. - The company incurred cash used in operating activities of $568,316 for the six months ended June 30, 2024 [161]. Cash and Investments - As of June 30, 2024, the company had cash held in the trust account amounting to $24,269,376, intended for completing a business combination [163]. - The company had a net cash used in investing activities of $42,037,434 for the six months ended June 30, 2023, primarily due to redemptions of common stock [162]. - The company has withdrawn a total of $760,186 from the trust account for taxes, with $592,174 utilized for franchise and income taxes [164]. Debt and Financing - The company issued a promissory note in the principal amount of $373,737 to the Sponsor on March 20, 2024, in exchange for cash [150]. - As of June 30, 2024, the Company had $2,296,371 outstanding under Convertible Promissory Notes [179]. - As of June 30, 2024, the Company had $1,100,610 outstanding under Working Capital Notes, an increase from $549,100 as of December 31, 2023 [190]. - The Company issued Working Capital Notes totaling $1,500,000, with the latest being $177,773 on June 28, 2024 [177]. - The Company has no long-term debt, capital lease obligations, or operating lease obligations [182]. IPO and Underwriting - The company generated gross proceeds of $75,000,000 from its IPO of 7,500,000 units on December 30, 2021 [156]. - The underwriters received a cash underwriting discount of $1,545,537 at the closing of the IPO [182]. Business Viability and Concerns - Management has raised substantial doubt about the company's ability to continue as a going concern through August 30, 2023, if a business combination is not completed [168]. - The company has significant ongoing costs related to its acquisition plans and may need additional financing to complete a business combination [149]. Accounting and Compliance - The Company does not have any off-balance sheet arrangements as of June 30, 2024 [181]. - The Company has not identified any critical accounting estimates that could materially differ from actual results [198]. - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [192]. - The Company does not believe that the adoption of ASU 2023-09 will have a material impact on its financial statements [199]. Agreements - The Company has entered into a Backstop Agreement with Welsbach Holdings Pte Ltd to guarantee any deficiency of restricted cash as of June 30, 2024 [180].
Welsbach Technology Metals Acquisition Corp.(WTMAU) - 2024 Q2 - Quarterly Report