Finnovate Acquisition (FNVT) - 2021 Q3 - Quarterly Report

Part I - Financial Information Item 1. Financial Statements This section presents the unaudited condensed financial statements for Finnovate Acquisition Corp. as of September 30, 2021, detailing its pre-IPO financial position and initial formation expenses Condensed Financial Statements As of September 30, 2021, prior to its IPO, the company had total assets of $419,153, entirely comprising deferred offering costs, with total liabilities of $404,985 and a net loss of $10,832 from inception Condensed Balance Sheet as of September 30, 2021 (Unaudited) | Category | Amount ($) | | :--- | :--- | | Assets | | | Deferred offering costs | 419,153 | | Total Assets | 419,153 | | Liabilities | | | Accrued offering costs | 321,304 | | Promissory note – related party | 83,681 | | Total Liabilities | 404,985 | | Shareholder's Equity | | | Total Shareholder's Equity | 14,168 | | Total Liabilities and Shareholder's Equity | 419,153 | Condensed Statement of Operations (Unaudited) | Period | Net Loss ($) | | :--- | :--- | | Three Months Ended Sep 30, 2021 | 0 | | March 15, 2021 (Inception) to Sep 30, 2021 | (10,832) | - As of the end of the period, the company had no cash or cash equivalents[21][52] Notes to Condensed Financial Statements The notes clarify the company's status as a blank-check company, detailing its November 2021 IPO which raised $150 million, and the subsequent funding of its Trust Account with $175.95 million - The company is a blank-check company incorporated on March 15, 2021, for the purpose of effecting a business combination. It has 18 months from its IPO closing to complete such a transaction[24][33] - Subsequent to the reporting period, the company completed its IPO on November 8, 2021, selling 15,000,000 units at $10.00 per unit, generating gross proceeds of $150 million[26][63][92] - Following the exercise of the over-allotment option and sale of additional private placement warrants, a total of $175.95 million was held in the Trust Account[66][95] - Initial liquidity was provided by a $250,000 promissory note from the Sponsor. As of September 30, 2021, $83,681 was drawn down. The note was fully repaid on November 8, 2021[37][73] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management confirms the company is a blank-check entity with no operations or revenue to date, attributing the $10,832 net loss to formation costs and detailing post-IPO liquidity - The company is a blank check company formed to enter into a business combination and has not yet selected a target[99] Financial Summary | Metric | As of/For the period ended Sep 30, 2021 | | :--- | :--- | | Net Loss | $10,832 | | Cash in operating account | $0 | | Working Capital Deficit | $404,985 | - Post-IPO (as of November 12, 2021), the company had $175.95 million in its Trust Account and approximately $1.37 million available for working capital[108] - To fund potential working capital deficiencies, the Sponsor may provide interest-free Working Capital Loans, up to $1.5 million of which may be convertible into warrants. On November 12, 2021, the company borrowed $449,765 under this arrangement[111][96] Item 3. Quantitative and Qualitative Disclosures About Market Risk The company states it is not subject to material market or interest rate risk as of September 30, 2021, due to Trust Account investments in short-term U.S. government obligations - The company had no market or interest rate risk as of September 30, 2021[122] - Funds held in the Trust Account are invested in U.S. government treasury obligations with maturities of 185 days or less, which is believed to present no material exposure to interest rate risk[122] Item 4. Controls and Procedures Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes in internal control over financial reporting - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2021[124] - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[127] Part II - Other Information Item 1. Legal Proceedings The company reports that there are no legal proceedings - The company has no legal proceedings[129] Item 1A. Risk Factors The company incorporates risk factors by reference from its final IPO prospectus, stating no material changes have occurred since its filing - Risk factors are incorporated by reference from the company's final IPO prospectus. No material changes have occurred since its filing[130] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section details the November 2021 IPO and private placements, which resulted in $175.95 million net proceeds placed in the Trust Account, with private warrant sales exempt from registration - On November 8, 2021, the company consummated its IPO of 15,000,000 units at $10.00 per unit[131] - Simultaneously with the IPO, the company sold 7,900,000 Private Placement Warrants at $1.00 each in a private placement, raising $7.9 million[132] - Following the IPO and the exercise of the over-allotment option, net proceeds of $175.95 million were placed in the Trust Account[134] Item 3. Defaults Upon Senior Securities The company reports no defaults upon senior securities - None[137] Item 4. Mine Safety Disclosures This item is not applicable to the company - Not applicable[138] Item 5. Other Information The company reports no other information - None[139] Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - The report includes certifications from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act[141]