Financial Performance - The Company had a net income of $129,577 for the three months ended March 31, 2024, compared to a net income of $807,289 for the same period in 2023, reflecting a decrease of approximately 84%[111]. - Investment income for the three months ended March 31, 2024, was $536,343, down from $1,288,498 in 2023, indicating a decline of about 58%[111]. - The Company incurred expenses of $310,934 for the three months ended March 31, 2024, which is an increase of approximately 40% compared to $221,125 in 2023[111]. - For the three months ended March 31, 2024, cash used in operating activities was $282,081, with a net income of $129,577[114]. - For the three months ended March 31, 2023, cash used in operating activities was $112,499, with a net income of $807,289[115]. - Basic and diluted net income per share for the three months ended March 31, 2024, was $0.06, compared to a net loss per share of $(0.03) for the same period in 2023[127]. Business Combination and Compliance - The Company has until May 18, 2024, to complete a Business Combination, raising substantial doubt about its ability to continue as a going concern if not completed by this date[112]. - The Company has extended the period to consummate its initial Business Combination multiple times, with the latest extension allowing until February 18, 2024[100][101]. - The Company received a notice from Nasdaq on October 16, 2023, indicating non-compliance with the Minimum Total Holders Rule, requiring at least 400 total holders for continued listing[103]. - The Company was notified on April 23, 2024, that its Market Value of Listed Securities was below the minimum of $50 million required for continued listing on Nasdaq[106]. - The Company has a compliance period of 180 days from the April 23 notice to regain compliance with the Market Value Standard, or until October 21, 2024[107]. Cash and Investments - As of March 31, 2024, the company had $413 in cash and no cash equivalents[113]. - Cash provided by investing activities for the three months ended March 31, 2024, was $36,273,240, primarily due to cash withdrawn from the Trust Account[116]. - Cash provided by financing activities for the three months ended March 31, 2024, was $36,008,323, mainly from cash paid for redemptions[117]. - The Class A common stock subject to possible redemption decreased by $35,666,479 during the three months ended March 31, 2024, to $24,865,718[123]. Internal Controls and Reporting - As of March 31, 2024, the company's disclosure controls and procedures were deemed not effective due to a material weakness in internal control over financial reporting[129]. - Management does not believe that any recently issued accounting pronouncements would have a material effect on the audited financial statements[128]. - There were no changes in internal control over financial reporting during the quarter that materially affected the company's reporting[130]. Risk Factors - The company is classified as a smaller reporting company and is not required to provide certain risk factor information[130]. - As of the date of the report, there have been no material changes to the risk factors disclosed in previous filings[130].
Futuretech II Acquisition Corp.(FTIIU) - 2024 Q1 - Quarterly Report