Atlantic Coastal Acquisition Corp. II(ACABU) - 2024 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2024, the company reported a net loss of $338,851, with operating and formation costs of $393,674 and provision for income taxes of $26,173, partially offset by interest income of $80,957 [140]. - For the six months ended June 30, 2024, the company had a net loss of $1,387,575, consisting of operating and formation costs of $1,534,742 and provision for income taxes of $30,313, offset by interest income of $176,594 [142]. Initial Public Offering - The company generated gross proceeds of $300,000,000 from its Initial Public Offering of 30,000,000 Units at $10.00 per Unit, along with an additional $13,850,000 from the sale of Private Placement Warrants [144]. - The company incurred transaction costs of $17,204,107 related to the Initial Public Offering, including $5,760,000 in underwriting fees and $10,500,000 in deferred underwriting fees [145]. Cash and Liquidity - As of June 30, 2024, the company had cash held in the Trust Account of $7,619,044, with $29,728,990 redeemed and withdrawn in January 2024 [149]. - As of June 30, 2024, the company had cash of $236,779 available outside the Trust Account for operational expenses and target business evaluations [152]. - The company expects to continue incurring significant costs in pursuit of its acquisition plans and may need to raise additional capital through loans or investments [159]. Business Combination - The company has until September 19, 2024, to consummate a Business Combination, after which a mandatory liquidation will occur if not completed [161]. - The company has committed to provide $1,750,000 from its Sponsor to fund expenses related to investigating and selecting a target business [153]. Accounting and Financial Reporting - The company has no off-balance sheet financing arrangements or long-term liabilities other than the deferred underwriting fees contingent on the completion of a Business Combination [162]. - The company accounts for common stock subject to possible redemption as temporary equity, presenting it at redemption value outside of stockholders' equity [166]. - Warrants are classified as equity instruments based on specific terms and are recorded within stockholders' deficit [167]. - Net (loss) income per common share is calculated by dividing net (loss) income by the weighted average number of common stock outstanding for the period [168]. - The FASB issued ASU No. 2023-09, which will require additional disclosures in income tax rate reconciliation effective for annual periods beginning after December 15, 2024 [169]. - Management believes that no recently issued accounting standards will have a material effect on the financial statements [170].