AEON Biopharma(AEON) - 2021 Q4 - Annual Report

Financial Performance - The company generated net income of $8,200,831 for the year ended December 31, 2021, primarily due to unrealized gains of $10,712,133 on warrants and $79,687 in interest income[235] - The company incurred formation and operating costs of $1,935,943 and warrant issue costs of $655,046 during the year ended December 31, 2021[235] - The company has not generated any operating revenues to date and will only do so after completing its initial Business Combination[234] Initial Public Offering (IPO) - The company raised gross proceeds of $276,000,000 from the Initial Public Offering (IPO) by issuing 27,600,000 Units at $10.00 per Unit[225] - The company paid an underwriting discount of approximately $5,520,000 at the closing of the IPO and agreed to pay additional deferred underwriting fees of approximately $9,660,000 upon completion of the Business Combination[241] Business Combination and Liquidation - The company has until February 11, 2023, to complete its initial Business Combination, or it will face mandatory liquidation[229] Financial Position - As of December 31, 2021, the company had approximately $497,000 in cash and $835,000 in current liabilities, raising concerns about its ability to continue as a going concern[232] Administrative Agreements - The company has entered into an Administrative Services Agreement to pay the Sponsor up to $25,000 per month for administrative services[237] Warrant Classification - The company issued 5,213,333 Private Placement Warrants at $1.50 each, generating gross proceeds of approximately $7,820,000[226] - The company has determined that the warrants are classified as derivative instruments and are recorded at fair value[243] Regulatory Compliance - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[252] - The company may not be required to provide an auditor's attestation report on internal controls over financial reporting for five years post-IPO[253] - The company is evaluating the benefits of relying on reduced reporting requirements provided by the JOBS Act[253] - As a smaller reporting company, the company is not required to provide certain market risk disclosures[254]