Clover Leaf Capital (CLOE) - 2022 Q2 - Quarterly Report

Financial Performance - The company had a net loss of $122,189 for the three months ended June 30, 2022, consisting of formation and operating costs of $336,756, offset by interest earned on investments of $219,232 [124]. - For the six months ended June 30, 2022, the company reported a net loss of $43,706, with formation and operating costs totaling $652,958 [125]. - The company has not generated any operating revenues since its inception and will not do so until the completion of its initial business combination [123]. Cash and Working Capital - As of June 30, 2022, the company had $288,958 in cash and working capital of $305,192, down from $680,302 and $418,498, respectively, as of December 31, 2021 [127]. - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2022 [140]. Business Combination and Financing - The company issued a promissory note of $1,383,123 to the Sponsor to extend the deadline for completing its initial business combination from July 22, 2022, to October 22, 2022 [120]. - The company has until October 22, 2022, to complete its initial business combination, with the possibility of extending this deadline by three additional three-month periods [119]. - The company plans to use funds not held in the trust account for identifying and evaluating prospective acquisition candidates and related expenses [129]. Transaction Costs - The company incurred transaction costs of $9,562,126 related to its initial public offering, including $2,766,246 in underwriting commissions [118]. Accounting Standards - The FASB issued ASU 2020-06, effective January 1, 2024, simplifying accounting for convertible instruments and impacting diluted earnings per share calculations [143]. - Early adoption of ASU 2020-06 is permitted starting January 1, 2021, and the company is assessing its potential impact on financial position and cash flows [143]. - Management believes that other recently issued accounting standards will not materially affect the company's unaudited condensed financial statements [144]. Stock Redemption - The company has a redemption feature for its Class A common stock, allowing for redemption in connection with liquidation or certain corporate actions [136].