Financial Performance - The company reported a net loss of $824,042 for the three months ended March 31, 2024, compared to a net income of $1,267,859 for the same period in 2023[130][131]. - The company has not generated any operating revenues to date and does not expect to do so until after the completion of its Business Combination[129]. Cash and Investments - As of March 31, 2024, the company had cash, investments, and marketable securities held in the Trust Account totaling $51,171,024[138]. - The company generated non-operating income of $1,020,688 from interest on investments held in the Trust Account for the three months ended March 31, 2024[130]. IPO and Transaction Costs - The company incurred $14,181,568 in IPO transaction costs, including $4,973,868 in underwriting fees[134]. - 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[151]. Business Combination and Shareholder Actions - On January 19, 2024, stockholders approved an extension of the deadline for the initial business combination to December 20, 2024, with 10,872,266 shares redeemed at approximately $10.6224 per share, totaling about $115,489,643[127][138]. - 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[145]. Working Capital and Liabilities - The company has a working capital deficit of $4,958,974 as of March 31, 2024[136]. - The company has outstanding Working Capital Loans of $2,425,000 as of March 31, 2024, increased from $2,025,000 at the end of 2023[137]. - The company recorded an excise tax liability of $967,916, calculated as 1% of the shares redeemed on September 19, 2023[124]. - The Company may need additional financing to complete the Business Combination or to meet obligations if a significant number of public shares are redeemed[144]. Equity and Shares - As of March 31, 2024, the Company has 4,757,884 shares of Class A common stock presented at redemption value as temporary equity, compared to 15,630,150 shares as of December 31, 2023[155]. - The company entered into non-redemption agreements with third parties, agreeing to issue 1,112,500 Class A Shares at the time of the initial business combination[128]. Administrative Expenses - The Company incurred $90,000 in administrative support fees for both the three months ended March 31, 2024, and 2023, with $376,451 in accrued expenses as of March 31, 2024[148]. Financing and Advisory Services - 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[152]. - The Company has no long-term debt obligations or capital lease obligations as of the reporting date[147]. - The Company has no off-balance sheet financing arrangements as of March 31, 2024, and does not participate in transactions that create relationships with unconsolidated entities[146]. Redemption Value Adjustments - 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[156].
FTAC EMERALD ACQ(EMLDU) - 2024 Q1 - Quarterly Report