Financial Performance - The company reported a net loss of $824,042 for the three months ended March 31, 2024, compared to a net income of $1,267,859 for the same period in 2023[113][114]. - The company has not generated any operating revenues to date and only earns non-operating income from interest on marketable securities[112]. Cash and Investments - As of March 31, 2024, the company had cash, investments, and marketable securities held in the Trust Account totaling $51,171,024[121]. - The company has a working capital deficit of $4,958,974 as of March 31, 2024[119]. - The company has outstanding Working Capital Loans totaling $2,425,000 as of March 31, 2024, increased from $1,500,000 to $3,000,000[120]. - The company intends to use substantially all funds in the Trust Account, including interest earned, to complete its Business Combination, having withdrawn $13,170 for taxes during the period ended March 31, 2024[126]. Shareholder Activity - On September 19, 2023, shareholders redeemed 9,239,192 shares of redeemable Class A common stock for approximately $96,791,644 at a redemption price of $10.4762 per share[107]. - On January 19, 2024, shareholders redeemed 10,872,266 shares of redeemable Class A common stock for approximately $115,489,643 at a redemption price of $10.6224 per share[110]. - As of March 31, 2024, the company has 4,757,884 shares of Class A common stock presented at redemption value as temporary equity, compared to 15,630,150 shares as of December 31, 2023[139]. Business Combination - The company plans to extend the deadline for consummating its initial business combination to December 20, 2024[110]. - The company has until December 20, 2024, to consummate a Business Combination, with substantial doubt raised about its ability to continue as a going concern if not completed by this date[129]. - The company may need additional financing to complete its Business Combination or to meet obligations if cash on hand is insufficient post-transaction[128]. Costs and Expenses - The company incurred $14,181,568 in IPO transaction costs, including $4,973,868 in underwriting fees[117]. - The company incurred $90,000 in administrative support fees for the three months ended March 31, 2024, with $376,451 in accrued expenses as of the same date[132]. - The underwriter earned a cash underwriting discount of $4,973,868 and a deferred underwriting discount of $8,704,270, which was waived on October 18, 2023, resulting in a reclassification to additional paid-in capital[135]. Financial Controls and Reporting - Management evaluated the effectiveness of disclosure controls and procedures as of March 31, 2024, concluding they were effective[144]. - There were no changes in internal control over financial reporting during the most recent fiscal quarter that materially affected the company's internal controls[145]. - The company has no off-balance sheet financing arrangements as of March 31, 2024, and does not participate in transactions that create relationships with unconsolidated entities[130]. - The company has no long-term debt obligations or liabilities other than those specified in its administrative services agreement[131]. Non-Redemption Agreements - The company has entered into non-redemption agreements with third parties, agreeing to issue 1,610,000 Class A Shares in exchange for commitments not to redeem public shares[108][111].
FTAC Emerald Acquisition Corp.(FLD) - 2024 Q1 - Quarterly Report