Financial Performance - As of June 30, 2023, the company reported a net income of $798,325 for the three months ended June 30, 2023, and $2,406,359 for the six months ended June 30, 2023, primarily from interest income[135]. - As of June 30, 2023, the company had cash outside the Trust Account of only $84 available for working capital needs[138]. - As of June 30, 2023, $49,464,956 of the IPO proceeds and interest earned were held in the Trust Account[139]. - As of June 30, 2023, the company had no long-term debt or capital lease obligations[146]. - The company had $0 outstanding borrowings under the Working Capital Loan as of June 30, 2023[140]. IPO and Capital Structure - The company completed its IPO on November 8, 2021, raising gross proceeds of $172,500,000, with $175,950,000 placed in a Trust Account[117][118]. - The company raised gross proceeds of $172,500,000 from the sale of 17,250,000 Units at $10.00 per Unit during its IPO[139]. - The company had a total of 21,712,500 ordinary shares issued and outstanding as of April 14, 2023, with approximately 66.33% present at the Extension Meeting[124]. - Shareholders redeemed 12,626,668 Class A ordinary shares for approximately $132,616,922 at a redemption value of about $10.50 per share[125]. Business Combinations and Investments - The company entered into an Investment Agreement with Sunorange on April 27, 2023, which included the acquisition of 3,557,813 Class B ordinary shares and 6,160,000 Private Placement Warrants[119]. - Following the Sunorange Investment, the company issued 4,237,499 Sponsor Shares and 75,000 Class A ordinary shares upon conversion of Class B ordinary shares[128][129]. - The company announced a Business Combination Agreement with Scage on August 21, 2023, with a post-combination valuation of $1.0 billion[131]. - The company has not commenced any operations and will not generate operating revenues until after completing an initial Business Combination[134]. - The company has until May 8, 2024, to complete a Business Combination, or it will commence automatic winding up and liquidation[143][144]. Compliance and Regulatory Matters - The company received deficiency notices from Nasdaq regarding compliance with listing standards, with deadlines to submit plans for regaining compliance[132][133]. Consulting and Fees - The company engaged EarlyBirdCapital to assist with its initial Business Combination, agreeing to pay a fee of 1.75% of the gross proceeds of the IPO upon consummation[147]. - A third-party consultant was engaged on August 29, 2023, with a contingent fee of 0.5% of the implied enterprise value of the target if a Business Combination is consummated[149]. Risk Management and Accounting - The company does not expect to engage in any hedging activities regarding market risk[163]. - The company has not had any off-balance sheet arrangements as of June 30, 2023[145]. - The company is currently assessing the impact of new accounting standards effective after December 15, 2023, on its financial position[156][157].
Finnovate Acquisition (FNVT) - 2023 Q2 - Quarterly Report