Atlantic Coastal Acquisition Corp. II(ACABU) - 2023 Q3 - Quarterly Report

Financial Performance - The Company had a net loss of $44,630 for the three months ended September 30, 2023, primarily due to operating and formation costs of $315,247 and tax obligations of $127,646, partially offset by interest income of $468,307 from marketable securities [115]. - For the nine months ended September 30, 2023, the Company reported a net income of $2,828,701, driven by interest earned on marketable securities of $5,279,395, despite incurring operating costs of $1,273,146 and tax provisions of $1,093,646 [117]. Marketable Securities - As of September 30, 2023, the Company held marketable securities in the Trust Account amounting to $36,466,121, primarily invested in money market funds and U.S. Treasuries [126]. - The Company raised gross proceeds of $300,000,000 from its Initial Public Offering, with an additional $13,850,000 from the sale of Private Placement Warrants [119]. Transaction Costs - The Company incurred transaction costs of $17,204,107 related to the Initial Public Offering, including $5,760,000 in underwriting discounts and $10,500,000 in deferred underwriting fees [120]. Business Combination - The Company has until December 19, 2023, to complete a Business Combination, after which a mandatory liquidation will occur if not completed [135]. - The Company plans to use substantially all funds in the Trust Account to complete its Business Combination, with remaining proceeds allocated for working capital [128]. - The Sponsor has committed to provide $1,750,000 to fund expenses related to identifying and evaluating target businesses [130]. - The Company extended the Business Combination period from October 19, 2023, to December 19, 2023, to allow more time for completion [132]. Cash and Operational Expenses - As of September 30, 2023, the Company had cash of $948,153 available for operational expenses and due diligence activities [129]. Accounting Standards - The company adopted ASU 2016-13 on January 1, 2023, which did not have a material impact on its financial statements [144]. - The company is currently assessing the impact of ASU 2020-06, effective for fiscal years beginning after December 15, 2023, on its financial position and results of operations [143]. Equity and Stock - Common stock subject to possible redemption is presented at redemption value as temporary equity outside of the stockholders' equity section [140]. - The company accounts for warrants as equity-classified instruments based on specific terms and applicable guidance, meeting criteria for equity classification [141]. - Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common stock outstanding for the period [142].