Initial Public Offering (IPO) - The company completed its Initial Public Offering on February 18, 2022, raising gross proceeds of $115 million from the sale of 11,500,000 units at $10.00 per unit[25]. - A total of $117.3 million was deposited into a trust account for the benefit of public stockholders, net of underwriting commissions and offering expenses[27]. - The company completed its Initial Public Offering on February 18, 2022, selling 11,500,000 units at an offering price of $10.00 per unit, generating gross proceeds of $115,000,000[73]. - The underwriter is entitled to a deferred fee of 3% of the gross proceeds of the Offering, amounting to $3,450,000, payable upon closing of a Business Combination[84]. - The Company incurred offering costs of $513,352 related to the Initial Public Offering, which were charged to additional paid-in capital[195]. - The Company sold 11,500,000 Units at a purchase price of $10.00 per Unit during the Initial Public Offering, totaling $115,000,000[210]. - The Sponsor purchased 520,075 Private Placement Units for an aggregate of $5,200,750, contributing to the Trust Account[211]. Financial Performance - For the year ended December 31, 2022, the company reported a net income of $700,015, driven by investment income of $1,676,585, offset by expenses of $666,311 and tax expense of $310,259[80]. - Net income for the year ended December 31, 2022, was $700,015 compared to a net loss of $438 in 2021, reflecting a significant turnaround[160]. - Income earned on investments held in the Trust Account amounted to $1,676,585 for the year ended December 31, 2022[160]. - Basic and diluted net income per share for Class A common stock was $0.05 for the year ended December 31, 2022[199]. Cash and Assets - As of December 31, 2022, the company had $262,756 in cash and no cash equivalents[82]. - Cash at the end of the period was $262,756, up from $5,000 at the beginning of the period[165]. - Total current assets increased to $420,370 from $5,000 in 2021, primarily due to cash and marketable securities[158]. - The Trust Account held $118,976,585 in marketable securities as of December 31, 2022[194]. Liabilities and Capital Structure - Total liabilities increased to $4,237,635 from $115,893 in 2021, largely due to accounts payable and accrued expenses[158]. - The company has a working capital deficit of $367,265 as of December 31, 2022[173]. - The Company has no long-term debt, capital lease obligations, or long-term liabilities as of December 31, 2022[83]. - The Company has not reported any amounts outstanding under Working Capital Loans as of December 31, 2022[135]. - The Company has no working capital loans outstanding as of December 31, 2022, and December 31, 2021[216]. Business Strategy and Focus - The company intends to focus on acquiring U.S. companies in the disruptive technology sector, particularly in AI and robotics, while avoiding entities with principal operations in China[23]. - The management team aims to leverage its experience to improve operational efficiency and drive revenue growth through acquisitions[33]. - The company has not yet selected a specific business combination target and has not initiated substantive discussions with any potential targets[42]. - The company expects to incur significant costs in pursuing its acquisition plans and cannot assure that its plans to raise capital or complete the initial business combination will be successful[78]. Corporate Governance - The company has established an audit committee consisting of independent directors, with Aroop Zutshi serving as the chair[110]. - The audit committee is required to have at least three independent members, all of whom meet the Nasdaq listing standards[111]. - The compensation committee is also composed of independent directors, with Jeffrey Moseley as the chair[112]. - The board of directors has determined that three members are independent directors as per Nasdaq listing standards[137]. Regulatory and Compliance Risks - The company may face foreign ownership restrictions and CFIUS review, which could limit the pool of potential targets for business combinations[59]. - The Company faces risks related to the military action in Ukraine, which may adversely affect its ability to consummate a Business Combination[183]. - Management is evaluating the impact of the COVID-19 pandemic, which may negatively affect the Company's financial position and operations[182]. - The Inflation Reduction Act imposes a 1% excise tax on stock buybacks starting in 2023, which the Company is currently assessing[205]. Future Outlook - The company has until May 18, 2023, to complete a Business Combination, after which failure to do so will result in mandatory liquidation[81]. - The Company has the option to extend the period to consummate a Business Combination by up to 18 months, requiring a total payment of $2,300,000[218]. - The Company has agreed not to transfer Class B common stock until certain conditions are met, including a closing price of $12.00 per share for 20 trading days[133].
FutureTech II Acquisition (FTII) - 2022 Q4 - Annual Report