Real Estate Acquisition and Lease Agreement - CONX Corp completed the acquisition of a commercial real estate property in Littleton, Colorado for $26.75 million on May 1, 2024[149] - The company entered into a 10-year triple-net lease agreement with the seller, with a base rent of $228,500 per month, escalating at 2% annually[151] - For Q2 2024, the company reported rental income of $500,402, a significant increase from $0 in Q2 2023[164] Stock Transactions and Equity Issuance - CONX Corp purchased 1,941,684 shares of its Class A Common Stock at $10.60 per share, totaling $20.58 million[153] - The company issued and sold 17,391,300 shares of Preferred Stock at $11.50 per share, raising approximately $200 million[154] - The company determined the issue price of $11.50 per share as the fair value of the Preferred Stock at issuance, with subsequent measurement at the same per share amount[184] Debt Repayment and Borrowing - CONX Corp repaid $900,000, $1,168,773.76, and $539,652.40 to nXgen under various notes[155][156] - The company borrowed $900,000 under the Second Restated Note from nXgen, which was fully repaid by the Closing Date[172] Financial Performance and Income - Net income for Q2 2024 was $4,213,277, a $5,133,483 increase from Q2 2023, driven by changes in fair market value of derivative warrant liabilities and increased interest income[167] - The company generated $1,671,542 in interest income for Q2 2024, primarily from cash and cash equivalents held in an investment account[165] Cash Flow and Trust Account Activities - Total of $750.0 million was placed in the Trust Account after the IPO and sale of Private Placement Warrants, with $103,135 cash held outside the Trust Account as of June 30, 2024[171] - Net cash used in operating activities for the six months ended June 30, 2024 was $83,279, compared to $1,516,657 for the same period in 2023[173] - Net cash used in investing activities for the six months ended June 30, 2024 was $4,463,792, while cash provided by financing activities was $177,311,864[174] - Operating cash as of June 30, 2024 was $172,772,954, with $0 in the Trust Account, compared to $8,162 operating cash and $21,966,104 in the Trust Account as of December 31, 2023[175] - Approximately $20.58 million from the Trust Account was used to redeem 1,941,684 shares of Class A common stock, and $1,503,969 remaining funds were released to the company[176] Business Combination and Equity Forward Transaction - The company completed its Business Combination and Equity Forward Transaction on May 1, 2024, resulting in $200 million cash proceeds and $3 million annual rental revenue[177] - CONX Corp and other PIPE investors agreed to purchase 14.265 million shares of EchoStar's Class A common stock for approximately $400 million[158] Securities and Warrants - The company's securities were delisted from Nasdaq effective July 29, 2024, and now trade over-the-counter[157] - The company's Public and Private Placement Warrants are classified as liability-classified derivative instruments and recorded at fair value, with changes reported in the Unaudited Condensed Statements of Operations[182] Off-Balance Sheet Arrangements - As of June 30, 2024, the company had no off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K[186]
CONX (CONX) - 2024 Q2 - Quarterly Report