Financial Performance - The company experienced a net income of $448,912 for the three months ended June 30, 2024, compared to a net income of $457,709 for the same period in 2023, indicating a slight decrease of about 0.2%[13] - Basic and diluted net income per redeemable ordinary share was $0.13 for the three months ended June 30, 2024, compared to $0.10 for the same period in 2023, showing an increase of 30%[13] - The company reported a loss from operations of $168,186 for the three months ended June 30, 2024, significantly lower than the loss of $563,701 for the same period in 2023, indicating an improvement of approximately 70%[13] - For the six months ended June 30, 2024, the company reported a net income of $713,242 compared to a net loss of $551,393 for the same period in 2023[17] - The net loss for the six months ended June 30, 2024, was $341,245, including an accretion of temporary equity to redemption value of $790,157[79] Liabilities and Shareholder Equity - As of June 30, 2024, the company reported total liabilities of $9,206,623, an increase from $8,491,480 as of December 31, 2023, reflecting a growth of approximately 8.4%[11] - The accumulated deficit increased to $(9,163,097) as of June 30, 2024, from $(8,282,297) as of December 31, 2023, representing a deterioration of approximately 10.6%[12] - The company’s total shareholders' deficit was $(9,162,840) as of June 30, 2024, compared to $(8,282,040) as of December 31, 2023, indicating a decline of about 10.6%[12] - The total current liabilities amounted to $6,319,123 as of June 30, 2024, up from $5,603,980 as of December 31, 2023, marking an increase of about 12.7%[11] Trust Account and Cash Management - The Company has placed a total of $84,150,000 in the Trust Account following the IPO, with $1,515,795 in cash held outside the Trust Account for working capital purposes[42] - As of June 30, 2024, the Trust Account holds $52,072,006 solely in cash in an interest-bearing demand deposit account[43] - The Company liquidated U.S. government securities in the Trust Account and now holds funds in an interest-bearing bank deposit account yielding approximately 4.5% per annum[129] - Approximately $40.5 million was removed from the Trust Account to pay shareholders who redeemed their public shares, resulting in 4,537,829 public shares outstanding[24] - On July 10, 2024, shareholders redeemed approximately $43.4 million (approximately $11.47 per share) from the Trust Account, leaving 751,837 public shares outstanding[27] Business Combination and Operations - The company has not commenced any operations and does not expect to generate operating revenues until after completing a business combination[20] - The company has extended the deadline to consummate a business combination from July 11, 2024, to April 11, 2025, with provisions for monthly extensions[26] - The Merger Agreement with Longevity Biomedical was terminated on June 26, 2024, and the Company is seeking alternative ways to consummate an initial business combination[39] - The Company entered into a letter of intent with Semnur for a potential business combination on July 2, 2024, although no assurance of a definitive agreement exists[123] Capital Structure and Financing - The Company completed its IPO on April 11, 2022, raising gross proceeds of $82.5 million from the sale of 8,250,000 Public Units at $10.00 each[92] - A private placement occurred simultaneously with the IPO, generating gross proceeds of $5.1 million from the sale of 510,000 Private Placement Units at $10.00 each[94] - The Company has outstanding Working Capital Loans totaling $1,128,200 as of June 30, 2024, with an accrued interest expense of $42,638[102] - The Company issued a convertible promissory note totaling up to $180,000 to Scilex, with an initial principal balance of $15,037[28] - The Company issued a FutureTech Convertible Promissory Note totaling $825,000 on July 11, 2023, and as of June 30, 2024, there was an outstanding amount of $1,275,000 under this note[46] Compliance and Regulatory Matters - The Company received a letter from Nasdaq on February 22, 2024, indicating that its Minimum Value of Listed Securities (MVLS) was below the required $50 million, with a compliance deadline of August 20, 2024[51] - On July 26, 2024, the Company regained compliance with Nasdaq Listing Rule 5450(b)(2)(A) and continues to trade on Nasdaq[52] Miscellaneous - The Company recognized no unrecognized tax benefits or accrued interest and penalties related to unrecognized tax benefits as of June 30, 2024[87] - The Company adopted ASU 2020-06 effective January 1, 2024, which simplifies accounting for convertible instruments but does not have a material impact on the financial position[91] - The Company has not experienced losses on its cash account, which may exceed the Federal Depository Insurance Coverage of $250,000[74] - The Company has agreed to registration rights for holders of founder shares and Private Placement securities, allowing them to demand registration of their securities[103]
Denali Capital Acquisition Corp.(DECAU) - 2024 Q2 - Quarterly Report