FTAC EMERALD ACQ(EMLDU) - 2022 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2022, the company reported a net income of $1,115,764, driven by interest income of $3,619,061 from investments in the Trust Account, offset by operating costs of $1,776,887 and income tax provision of $726,410[289]. - The company raised gross proceeds of $220,000,000 from its Initial Public Offering (IPO) by selling 22,000,000 units, with an additional $28,693,420 from the partial exercise of the over-allotment option[290]. - The company incurred $14,181,568 in IPO transaction costs, including $4,973,868 in underwriting fees and $8,704,270 in deferred underwriting fees[292]. Assets and Liabilities - As of December 31, 2022, the company had cash, investments, and marketable securities in the Trust Account totaling $254,251,750, which will be primarily used to complete a Business Combination[295]. - The company had working capital of $203,453 as of December 31, 2022, and expects to incur significant expenses related to the consummation of a Business Combination[298]. - The company has no off-balance sheet financing arrangements as of December 31, 2022, and does not participate in transactions that create relationships with unconsolidated entities[299]. Business Combination - The company has until September 20, 2023, to complete a Business Combination, after which mandatory liquidation will occur if not completed[298]. - The company plans to use funds held outside the Trust Account for identifying and evaluating target businesses, performing due diligence, and completing a Business Combination[296]. Administrative Expenses - The company has entered into an administrative services agreement, incurring $30,000 monthly fees for office space and administrative support, totaling $360,000 for the year ended December 31, 2022[301]. Accounting Standards - The company recognizes changes in the redemption value of Class A common stock immediately, with 24,869,342 shares presented at redemption value as temporary equity as of December 31, 2022[308]. - ASU 2020-06, effective for fiscal years beginning after December 15, 2023, simplifies accounting for convertible instruments and diluted earnings per share calculations[311]. - Management believes that no recently issued accounting standards will materially affect the financial statements if adopted[312]. - As a smaller reporting company, the company is not required to disclose quantitative and qualitative market risk information[313].