Financial Performance - Net loss for the three months ended September 30, 2024, was $123,127, compared to a net income of $661,226 for the same period in 2023[17]. - For the nine months ended September 30, 2024, the company reported a net loss of $38,005 compared to a net income of $2,304,899 for the same period in 2023[22]. - Basic and diluted net income (loss) per share of redeemable common stock for the three months ended September 30, 2024, was $(0.23), compared to $0.10 for the same period in 2023[17]. - The basic and diluted net loss per share for the three months ended September 30, 2024, is $(0.23), compared to $(0.07) for the same period in 2023, indicating a significant decline in performance[72]. - For the nine months ended September 30, 2024, the basic and diluted net loss per share is $(0.02), compared to a profit of $0.26 for the same period in 2023, highlighting a substantial decrease in profitability[72]. Assets and Liabilities - Total current assets as of September 30, 2024, are $1,563,117, a decrease from $1,385,762 as of December 31, 2023[15]. - Total liabilities increased to $9,651,445 as of September 30, 2024, compared to $8,497,201 as of December 31, 2023[15]. - The accumulated deficit increased to $(7,762,739) as of September 30, 2024, from $(6,499,430) as of December 31, 2023[15]. - As of September 30, 2024, the company had cash of $1,883 and a working capital deficit of $4,638,328, compared to cash of $17,578 and a deficit of $3,661,439 as of December 31, 2023[41][42]. - The company has a working capital deficit that may require additional capital raising efforts to meet operational needs[43]. Cash Flow and Investments - Cash flows from operating activities resulted in a net cash used of $834,803, an improvement from $966,279 in the prior year[22]. - The company generated net cash provided by investing activities of $36,138,640, a decrease from $62,196,521 in the previous year[22]. - Interest earned on the interest-bearing bank demand deposit held in the trust account for the three months ended September 30, 2024, was $287,584, a significant decrease from $1,232,507 in the same period of 2023[17]. Business Combination and Future Outlook - The company is in the process of a proposed business combination with Longevity Biomedical, Inc., which may impact future financial performance[12]. - The company faces risks related to ongoing geopolitical conflicts and economic conditions that could affect its ability to complete the business combination[13]. - The company has until August 18, 2025, to consummate a business combination, or it will be required to redeem public shares and liquidate[33]. - The company is required to complete a business combination by February 14, 2025, or face immediate suspension and delisting from Nasdaq[80]. - The company has raised substantial doubt about its ability to continue as a going concern through August 18, 2025, if a Business Combination is not consummated by that date[44]. Stock and Shareholder Information - The Class A common stock subject to possible redemption decreased by $34,620,208 during the nine months ended September 30, 2024, due to a redemption of $36,281,990[67]. - As of September 30, 2024, the ending balance of common stock is $26,606,595, a decrease from $61,226,803 as of December 31, 2023, reflecting a redemption of Class A common stock totaling $36,281,990[69]. - There were 2,319,435 shares of Class A common stock subject to possible redemption as of September 30, 2024, compared to 5,556,350 shares as of December 31, 2023[110]. - The Company has authorized 100,000,000 shares of Class A common stock, with 635,075 shares issued and outstanding as of September 30, 2024[110]. Tax and Regulatory Compliance - The company is subject to a new U.S. federal 1% excise tax on stock repurchases, which may impact its ability to complete a Business Combination[49]. - The Company has recorded a liability to comply with the 1% excise tax on stock buybacks imposed by the Inflation Reduction Act, effective from 2023[79]. - The Company has no unrecognized tax benefits as of September 30, 2024, and December 31, 2023, indicating compliance with tax regulations[76]. Operational Costs and Expenses - The company reported total expenses of $367,118 for the three months ended September 30, 2024, an increase from $329,254 in the same period of 2023[17]. - The Company has incurred $1,540,984 in expenses to be reimbursed by the Sponsor as of September 30, 2024, up from $1,179,141 as of December 31, 2023[101]. - The Company has agreed to pay the Sponsor $10,000 per month for administrative support, totaling $90,000 for the nine months ended September 30, 2024[102]. Merger Agreement and Extensions - On September 16, 2024, the company entered into a merger agreement with Longevity Biomedical, Inc., which is expected to change the company's name to "Longevity Biomedical, Inc." upon closing[36][37]. - The Company extended the deadline for the Business Combination period from November 18, 2024, to August 18, 2025, contingent upon a deposit of $0.05 per public share not redeemed[123]. - The Company has deposited a total of $162,232 into the Trust Account to extend the Business Combination period multiple times, with the latest extension to February 18, 2025[126].
Futuretech II Acquisition Corp.(FTIIU) - 2024 Q3 - Quarterly Report