Financial Performance - The company reported a net loss of $223,807 for the three months ended June 30, 2024, with general and administrative expenses of $626,004 and interest income of $664,259 [140]. - For the six months ended June 30, 2024, the company had a net loss of $1,047,849, which included general and administrative expenses of $1,352,759 and interest income of $1,684,947 [141]. - As of June 30, 2024, the company reported a working capital deficit of $5,365,129 [148]. - The Company incurred $180,000 in administrative support services fees for the six months ended June 30, 2024, with $466,452 in accrued expenses as of the same date [160]. Cash and Investments - As of June 30, 2024, the company had cash, investments, and marketable securities held in the Trust Account amounting to $51,511,443 [150]. - As of June 30, 2024, the Company withdrew $337,010 from the Trust Account to pay taxes, indicating ongoing operational expenses [154]. Capital Raising and Financing - The company raised gross proceeds of $220,000,000 from its Public Offering of 22,000,000 units, with each unit consisting of one share of Class A common stock and one-half of one redeemable warrant [144]. - The company incurred $14,181,568 in IPO transaction costs, including $4,973,868 in underwriting fees [146]. - The Company may need additional financing to complete its Business Combination or to redeem public shares, which could involve issuing additional securities or incurring debt [156]. - The advisory fee for financial services related to the Business Combination is set at 0.525% of the proceeds, with a deferred advisory fee of $1,155,000 recognized as of December 31, 2023 [165]. Shareholder Actions and Agreements - On January 19, 2024, the company held a special meeting where stockholders approved an extension of the deadline for the initial business combination to December 20, 2024, with 10,872,266 shares redeemed for approximately $115,489,643 [137]. - The company entered into non-redemption agreements with third parties, agreeing to issue 1,610,000 Class A Shares in exchange for commitments not to redeem public shares [135]. - As of June 30, 2024, 4,757,884 shares of Class A common stock are presented at redemption value as temporary equity, reflecting the potential for mandatory redemption [168]. Tax and Liabilities - The company recorded an excise tax liability of $2,122,813 calculated as 1% of the shares redeemed on September 19, 2023, and January 19, 2024 [134]. - The Company has no long-term debt obligations or liabilities other than those specified, indicating a low leverage position [159]. - The Company has no off-balance sheet financing arrangements as of June 30, 2024, indicating a straightforward financial structure [158]. Business Continuity - 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 [157]. - The company has a total of $2,675,000 in outstanding Working Capital Loans as of June 30, 2024, increased from an original amount of $1,500,000 [149].
FTAC EMERALD ACQ(EMLDU) - 2024 Q2 - Quarterly Report