Financial Performance - The company reported a net loss of $309,776 for the three months ended September 30, 2024, with general and administrative expenses of $801,420 and interest income of $668,748 from investments held in the Trust Account[132]. - For the nine months ended September 30, 2024, the company had a net loss of $1,357,625, which included general and administrative expenses of $2,154,179 and interest income of $2,353,695[133]. - The company generated a net income of $1,206,590 for the three months ended September 30, 2023, primarily from interest income of $3,278,712, offset by formation and operating costs[134]. - For the nine months ended September 30, 2023, the company reported a net income of $4,202,024, with interest income of $9,027,924 and total expenses of $4,825,900[135]. Cash and Investments - As of September 30, 2024, the company had cash, investments, and marketable securities held in the Trust Account totaling $51,996,271[142]. - The Company intends to use substantially all funds held in the Trust Account to complete its Business Combination, having withdrawn $520,930 of interest income for taxes as of September 30, 2024[147]. Business Combination and Extensions - The company held a special meeting on September 19, 2023, where stockholders approved an extension of the business combination deadline to January 19, 2024, with 9,239,192 shares redeemed for approximately $96,791,644[124]. - At the January 19, 2024 meeting, stockholders approved another extension to December 20, 2024, with 10,872,266 shares redeemed for approximately $115,489,643[128]. - The Company has until December 20, 2024, to consummate a Business Combination, with substantial doubt about its ability to continue as a going concern if not completed by this date[151]. Shareholder Agreements and Redemptions - The company 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[126]. - As of September 30, 2024, 4,757,884 shares of Class A common stock are presented at redemption value as temporary equity, reflecting the potential for mandatory redemption[161]. Expenses and Liabilities - The company incurred $14,181,568 in IPO transaction costs, including $4,973,868 in underwriting fees[138]. - The Company has a working capital deficit of $6,159,733 as of September 30, 2024, and has outstanding Working Capital Loans of $3,000,000[140]. - The Company incurred $270,000 for administrative support services for the nine months ended September 30, 2024, with $556,452 in accrued expenses[154]. - 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[157]. - The Company may need additional financing to complete its Business Combination or to meet obligations if a significant number of public shares are redeemed[149]. Financial Advisory and Obligations - The Company has engaged Cohen & Company Capital Markets for financial advisory services, with fees based on a percentage of the proceeds from the Public Offering[159]. - The Company has a contractual obligation to pay a monthly fee of $30,000 for administrative services until the completion of the Business Combination or liquidation[154]. - The Company has no off-balance sheet financing arrangements as of September 30, 2024, and does not participate in transactions with unconsolidated entities[152]. Accounting Policies - The Company recognizes changes in the redemption value of Class A common stock immediately, adjusting the carrying value to equal the redemption value at the end of each reporting period[162].
FTAC Emerald Acquisition (EMLD) - 2024 Q3 - Quarterly Report