Thunder Bridge Capital Partners IV Inc.(THCPU) - 2024 Q3 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Financial Statements. Presents unaudited condensed financial statements, including balance sheets, operations, equity, cash flows, and notes on business and combination efforts Condensed Balance Sheets | Metric | Sep 30, 2024 (Unaudited) | Dec 31, 2023 (Unaudited) | Change | | :------------------------------------ | :----------------------- | :----------------------- | :----------------------- | | Total assets | $31,495,755 | $37,291,388 | $(5,795,633) | | Cash held in Trust Account | $31,467,808 | $37,273,384 | $(5,805,576) | | Total liabilities | $7,171,588 | $14,646,199 | $(7,474,611) | | Deferred underwriting fee payable | $0 | $8,278,474 | $(8,278,474) | | Total stockholders' equity (deficit) | $(7,023,641) | $(14,380,741) | $7,357,100 | Condensed Statements of Operations | Metric | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Formation costs and other operating expenses | $308,884 | $134,002 | $880,026 | $849,809 | | Interest income | $325,781 | $376,608 | $1,100,321 | $5,769,361 | | Change in fair value of warrant liability | $195,703 | $390,110 | $(243,008) | $390,110 | | Provision for income taxes | $90,341 | $426,917 | $205,857 | $1,177,975 | | Net (loss) income | $122,259 | $205,799 | $(228,570) | $4,131,687 | | Basic and diluted net income per share, redeemable Class A Common Stock | $0.06 | $0.09 | $0.12 | $0.29 | | Basic and diluted net income (loss) per share, non-redeemable Class A and Class B Common Stock | $(0.01) | $(0.02) | $(0.09) | $(0.11) | Condensed Statements of Changes in Stockholders' Deficit | Metric | Dec 31, 2023 | Sep 30, 2024 | Change | | :------------------------------------ | :----------- | :----------- | :----------- | | Total Stockholders' Equity (Deficit) | $(14,380,741) | $(7,023,641) | $7,357,100 | | Additional Paid in Capital | $0 | $8,278,474 | $8,278,474 | | Accumulated Deficit | $(14,381,397) | $(15,302,771) | $(921,374) | - Settlement of deferred underwriting fee payable contributed $8,278,474 to additional paid-in capital[13] Condensed Statements of Cash Flows | Metric | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | Change | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | | Net cash used in operating activities | $(1,857,384) | $(1,187,954) | $(669,430) | | Net cash provided by investing activities | $6,905,896 | $208,655,007 | $(201,749,111) | | Net cash used in financing activities | $(5,061,318) | $(207,295,563) | $202,234,245 | | Net change in cash | $(12,806) | $171,490 | $(184,296) | | Cash at the end of the period | $196 | $203,512 | $(203,316) | - Proceeds from redemption of Trust Account decreased significantly from $208.6 million in 2023 to $6.9 million in 2024[15] - Redemption of common stock decreased from $207.1 million in 2023 to $6.3 million in 2024[15] Notes to Condensed Financial Statements These notes provide detailed explanations of the company's organization, significant accounting policies, financial instruments, related party transactions, commitments, and the status of its business combination efforts, including liquidity and going concern considerations NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS - The company is a blank check company (SPAC) formed to complete a Business Combination, specifically with Coincheck[16][17] - Initial Public Offering (IPO) consummated on July 2, 2021, raising $225,000,000[18] - The Combination Period was extended to January 2, 2025, following stockholder approvals in June 2023 and June 2024[31][33] | Event | Public Shares Redeemed | Aggregate Redemption Amount | Redemption Price per Share | Date Effected | | :-------------------- | :--------------------- | :-------------------------- | :------------------------- | :------------ | | 2023 Redemptions | 20,135,697 | ~$207.1 million | ~$10.28 | July 3, 2023 | | 2024 Redemptions | 592,601 | ~$6.3 million | ~$10.64 | July 2, 2024 | - The company recorded an Excise Tax liability of $2,133,974 as of September 30, 2024, due to the 1% excise tax on stock repurchases under the Inflation Reduction Act of 2022[43] - Nasdaq granted the company's request to continue listing, subject to completing the Coincheck Business Combination and demonstrating compliance with the 36-Month Rule by January 14, 2025[48] NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Liquidity, Capital Resources and Going Concern - As of September 30, 2024, the company had a working capital deficit of approximately $6,510,523 and only $196 in its operating bank account[52][62] - The company has determined that the uncertainty surrounding its liquidity condition raises substantial doubt about its ability to continue as a going concern[54] - The Sponsor has advised the company it is prepared to honor advances to meet income tax obligations[55] Emerging Growth Company - The company is an "emerging growth company" and benefits from reduced reporting requirements[57] - The company has elected not to opt out of the extended transition period for new accounting standards, which may impact financial statement comparability[59] Use of Estimates - Financial statements rely on management's estimates and assumptions, which may differ from actual results[60][61] Cash and Cash Equivalents | Metric | Sep 30, 2024 | Dec 31, 2023 | | :---- | :----------- | :----------- | | Cash | $196 | $13,002 | Income Taxes - The company uses the asset and liability approach for income taxes (ASC 740)[63] - No unrecognized tax benefits or accrued interest/penalties were reported as of September 30,