Financial Position - As of September 30, 2023, the company had cash of $638,736 and marketable securities in the Trust Account totaling $48,974,196[156]. - As of September 30, 2023, the Company had $638,736 in cash and a working capital deficit of $4,606,920[162]. - The Company has incurred significant costs in pursuit of its financing and acquisition plans, with a total of $3,584,000 in unsecured promissory notes issued to existing investors[174]. Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of $5,358, with operating costs of $658,742 and interest income of $627,932 from marketable securities[152]. - For the nine months ended September 30, 2023, the company had a net loss of $415,775, which included operating costs of $1,927,221 and interest income of $2,417,604 from marketable securities[153]. - The company has not generated any revenues to date and does not expect to do so until after completing a business combination[151]. - The Company’s net loss per share is calculated without considering the effect of warrants, resulting in diluted loss per share being the same as basic loss per share[179]. Capital Raising and Costs - The company raised gross proceeds of $86,250,000 from its Initial Public Offering on February 15, 2022, with an additional $5,050,000 from the sale of private placement Units[154]. - The company incurred offering costs of $4,793,698, which included $1,725,000 in underwriting discounts and $2,587,500 in deferred underwriting fees[155]. - The Company may need to raise additional funds to meet operational expenditures and complete its business combination[165]. Shareholder Actions - A total of 4,115,597 Public Shares were redeemed for an aggregate amount of $43,318,207 from the Trust Account on May 11, 2023[156]. - The Company is obligated to redeem public shares if a Business Combination is not completed by November 15, 2023[163]. Business Strategy and Management - The management team has an average of over 40 years of experience in the energy industry, positioning the company to identify attractive acquisition opportunities[146]. - The Sponsor has extended the Combination period multiple times, with the latest extension to November 15, 2023, involving deposits of $120,000 each time[162]. - The Company has entered into a Common Stock Purchase Agreement with White Lion Capital, allowing for the purchase of up to $150,000,000 in common stock[166]. - The purchase price for shares sold to White Lion will be 96% of the lowest daily volume-weighted average price during a two-day period following the notice date[169]. Administrative Expenses - The Company has paid $169,250 to the Sponsor for administrative support services through September 30, 2023, and owes an additional $50,000[173]. - The Company has not had any off-balance sheet arrangements as of September 30, 2023[172].
HNR Acquisition p(HNRA) - 2023 Q3 - Quarterly Report