Financial Position - As of March 31, 2022, total assets amounted to $304,449, with total current assets at $92,140[14] - As of March 31, 2022, the Company had a working capital deficiency of $(187,860) but has since completed its IPO, alleviating substantial doubt about its ability to continue as a going concern[40] - The company had cash of $92,140 and a working capital deficit of $187,860 (excluding deferred offering costs) as of March 31, 2022[110] - The Company has no long-term debt or off-balance sheet financing arrangements as of March 31, 2022[116][117] IPO and Financing Activities - The company completed an IPO of 9,775,000 units, generating gross proceeds of $97,750,000 at an offering price of $10.00 per unit[26] - Transaction costs related to the IPO amounted to $6,411,757, including $5,376,250 in underwriting fees[29] - The Company completed the sale of 498,875 Private Placement Units at a price of $10.00 per unit, resulting in aggregate proceeds of $4,988,750[62] - A total of $99.22 million (or $10.15 per share) was placed in a trust account for the benefit of public stockholders following the IPO[102] - The net proceeds of $99,216,250 from the IPO and Private Placement were placed in a Trust Account for the benefit of public stockholders[139] Business Operations and Strategy - The company has not yet commenced any operations and will not generate operating revenues until after completing a business combination[25] - The company is actively searching for suitable business combination targets but has not selected any as of the reporting date[24] - The company has until December 21, 2023, to complete its initial business combination, with the option to extend this period[32] - The company intends to use substantially all funds in the trust account to complete its Business Combination, with potential interest withdrawals for tax payments[111] - The company expects to incur significant costs in pursuing acquisition plans and does not guarantee the success of completing a Business Combination[103] - The company may need additional financing to complete its Business Combination or to cover redemptions of public shares[114] Financial Performance - The company reported a net loss of $551 for the period from January 19, 2022, through March 31, 2022[16] - The Company has identified critical accounting policies related to offering costs and warrants, which will impact financial reporting[120][121] Shareholder Information - The Company has issued 2,443,750 Class B common shares, with an additional paid-in capital of $24,756[14] - The Company is authorized to issue 25,000,000 shares of Class A Common Stock, with none issued or outstanding as of March 31, 2022[79] - The Company issued 2,443,750 shares of Class B Common Stock as of March 31, 2022, with a total authorization of 4,500,000 shares[80] - Each Warrant allows the holder to purchase one share of Class A Common Stock at an exercise price of $11.50, with no Warrants outstanding as of March 31, 2022[83][84] - The Company has not issued any Rights as of March 31, 2022, which would convert into shares upon the initial Business Combination[86] Regulatory and Compliance - The Company has identified the United States as its only major tax jurisdiction and reported a tax provision of zero for the period from January 19, 2022, through March 31, 2022[56][59] - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[42] - The Company has established disclosure controls and procedures, which were deemed effective as of March 31, 2022[128] - No changes in internal control over financial reporting during the fiscal quarter that materially affected internal controls[131] - The company is not a party to any material legal proceedings, nor have any been threatened against it[134] - There have been no material changes to the risk factors disclosed in the final prospectus dated June 17, 2022[135] Risks and Uncertainties - Management is evaluating the impact of the COVID-19 pandemic on the Company's financial position, with potential negative effects not yet determinable[73] - The Company has not experienced losses on its cash account and believes it is not exposed to significant credit risks[51] - The Company has not asked the Sponsor to reserve for indemnification obligations, raising concerns about the Sponsor's ability to satisfy those obligations[38] Shareholder Commitments - The founders have agreed to vote their Founder Shares and Private Shares in favor of any proposed business combination and not to redeem any shares in connection with such a vote[63]
Feutune Light Acquisition (FLFV) - 2022 Q1 - Quarterly Report