Financial Performance - For the three months ended June 30, 2022, the company reported a net income of $4.9 million, driven by a change in fair value of warrant liability of $5.1 million [94]. - For the six months ended June 30, 2022, the company achieved a net income of $5.2 million, with general and administrative expenses totaling $1.0 million [95]. Cash and Liquidity - As of June 30, 2022, the company had approximately $0.6 million in cash available for working capital needs and $232.5 million in cash and liquid marketable securities held in trust [99]. - The company has determined that it will not be able to sustain operations for the next twelve months without obtaining additional financing, raising substantial doubt about its ability to continue as a going concern [100]. - The company plans to request Working Capital Loans of up to $1.5 million from its Sponsor to alleviate concerns about its ability to continue operations [100]. Transaction Costs and Financing - The company incurred transaction costs of $22,407,388 during its initial public offering, which included $12,650,000 in underwriters' fees and discounts [90]. - The company issued 6,400,000 Private Placement Warrants at a price of $1.50 per warrant, generating proceeds of $9,600,000 [103]. - The underwriters are entitled to a deferred fee of $8,050,000, which will be payable only if the company completes a Business Combination [106]. Debt and Obligations - The company has no long-term debt or capital lease obligations as of June 30, 2022, other than a monthly fee of $15,000 for administrative support [105]. Accounting Policies - The company has not made any material changes to its critical accounting policies and estimates since the Annual Report [113]. - Significant accounting policies include estimates for fair value of warrant liability and measurement of marketable debt securities [113]. - Management does not anticipate that recently issued accounting pronouncements will materially affect the financial statements [114]. - The company qualifies as a smaller reporting company and is not required to provide additional market risk disclosures [115].
Crixus BH3 Acquisition pany(BHAC) - 2022 Q2 - Quarterly Report