Financial Performance - Net income for the six months ended June 30, 2023, was $1,213,094, compared to a net loss of $73,622 for the same period in 2022[30]. - Basic and diluted net income per share attributable to Feutune Light Acquisition Corporation was $0.16 for the six months ended June 30, 2023, compared to a loss of $3.57 in 2022[30]. - Loss from operations for the six months ended June 30, 2023, was $(391,673), compared to $(96,307) in 2022, indicating increased operational challenges[30]. - The company reported a basic and diluted net loss per share of $(0.10) for the six months ended June 30, 2023, compared to $(3.57) in 2022, showing improvement in loss per share[30]. - For the six months ended June 30, 2023, the net income (loss) was $(73,622), compared to a net income of $1,213,094 for the same period in 2022[34]. - The income tax provision for the three months ended June 30, 2023, was $349,023, with no income tax expense for the same period in 2022[155]. - The income tax provision for the six months ended June 30, 2023, was $669,632, with no income tax expense from inception through June 30, 2022[157]. Assets and Liabilities - Total current assets decreased from $715,123 in 2022 to $481,530 in 2023, a decline of approximately 32.7%[28]. - Total assets decreased significantly from $101,240,621 in 2022 to $53,035,196 in 2023, representing a reduction of about 47.7%[28]. - Current liabilities increased from $544,947 in 2022 to $1,351,492 in 2023, an increase of approximately 148.5%[28]. - Total liabilities rose from $3,966,197 in 2022 to $4,772,742 in 2023, an increase of approximately 20.3%[28]. - Accumulated deficit increased from $(2,798,202) in 2022 to $(4,063,774) in 2023, indicating a worsening financial position[32]. - As of June 30, 2023, the Company had cash of $410,947 and a working capital deficit of $869,962[63]. - The Trust Account held $52,553,666 in money market funds as of June 30, 2023, compared to $100,525,498 as of December 31, 2022[101]. IPO and Financing - The company generated gross proceeds of $97,750,000 from its IPO, which consisted of 9,775,000 units sold at an offering price of $10.00 per unit[38]. - Transaction costs related to the IPO amounted to $5,966,117, including $5,376,250 in underwriting fees[41]. - The company issued 60,000 representative shares as part of the IPO transaction, valued at $72,175[40]. - The Company issued 498,875 Private Placement Units at a price of $10.00 per unit, generating total proceeds of $4,988,750[118]. - The Company issued 9,775,000 Warrants in connection with the IPO, each entitling the holder to purchase one share of Class A Common Stock at $11.50 per share[146]. Business Combination Plans - The company is actively searching for a suitable business combination target and is not limited to a specific industry or geographic region[36]. - The company will not undertake its initial business combination with any company based in or having the majority of operations in China[36]. - The Company has until September 21, 2023, to complete its initial Business Combination, with the possibility of extending this period up to March 21, 2024, by depositing $100,000 or $0.04 per Public Share for each one-month extension[48]. - The Company has made three Monthly Extension Payments of $100,000 each, allowing extensions from June 21, 2023, to September 21, 2023[49][53][56]. - The Company has not entered into any definitive agreements for a Business Combination as of the date of the report[66]. - The Company is focused on identifying a target business for its Business Combination since its IPO[224]. Trust Account and Cash Management - As of June 30, 2023, the company held $99,216,250 in a trust account, which is designated for use in a future business combination[44]. - The Company intends to use funds held in the Trust Account primarily to complete its Business Combination and may withdraw interest to pay taxes[70]. - The Company will not use funds from the Trust Account to pay any excise tax that may arise[218]. - The Company has not maintained any cash management policies and must comply with applicable laws regarding transfers and distributions[176]. Risks and Concerns - The Company has determined that liquidity concerns raise substantial doubt about its ability to continue as a going concern[75]. - Management has raised substantial doubt about the Company's ability to continue as a going concern due to potential inability to complete the Business Combination[195]. - The Company expects to incur significant costs in pursuing its acquisition plans and cannot assure that its plans to complete a Business Combination will be successful[166]. - The Company may face foreign ownership restrictions and CFIUS review for potential Business Combinations with U.S. businesses, which could limit its options[178]. - The Company is not currently involved in any material legal proceedings[215]. - There have been no material changes to the risk factors disclosed in the Prospectus and Annual Report as of the date of the Quarterly Report[216]. Accounting and Tax Matters - The Company has a full valuation allowance against its deferred tax assets, indicating significant uncertainty regarding future realization[157]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[78]. - The Company has not recognized any unrecognized tax benefits or accrued interest and penalties as of June 30, 2023[91]. - A new 1% U.S. federal excise tax may be imposed on the Company in connection with share redemptions during a Business Combination or Redemption Event[221]. - The excise tax is calculated as 1% of the fair market value of shares repurchased, with certain exceptions and netting provisions applicable[217]. - The Treasury has the authority to provide regulations regarding the excise tax, which could impact the Company's cash available for its Business Combination[218].
Feutune Light Acquisition (FLFV) - 2023 Q2 - Quarterly Report