Financial Position - As of March 31, 2023, the company had cash of $109,287 and marketable securities held in the Trust Account amounting to $91,052,778, consisting of U.S. Treasury Bills with a maturity of 180 days or less [115]. - As of March 31, 2023, the Company had $109,287 in cash and a working capital deficit of $1,074,617 [121]. - The Company has incurred significant costs related to financing and acquisition plans, raising doubts about its ability to continue as a going concern within one year [122]. - The Company may need to raise additional funds to meet operational expenditures and complete its business combination [123]. Operating Results - For the three months ended March 31, 2023, the company reported a net loss of $177,614, which included $653,731 in operating costs and $946,916 in interest income from marketable securities held in the Trust Account [112]. - The Company has a net loss per share of common stock, with diluted loss per share being the same as basic loss per share due to contingent warrant exercises [137]. - The company has not engaged in any operations or generated any revenues to date, with all activities focused on organizational efforts and identifying a target company for a business combination [111]. Cash Flows - During the three months ended March 31, 2023, cash flows used in investing activities totaled $862,500 related to the deposit of the SPAC extension payment into the Trust [117]. - The company had cash flows provided by financing activities of $1,168,000 during the three months ended March 31, 2023, related to the sale of unsecured promissory notes and the issuance of warrants [118]. Business Combination Plans - The company intends to use substantially all funds held in the trust account to complete its business combination, with remaining proceeds to be used for working capital and growth strategies [119]. - The Company received a deposit of $862,500 from the Sponsor on February 8, 2023, to extend the Combination period by three months until May 15, 2023 [121]. - On May 11, 2023, the stockholders approved an amendment to extend the initial Business Combination deadline to November 15, 2023, with a required deposit of $120,000 for each one-month extension [121]. Capital Structure - The company generated 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 [113]. - The Company recorded $4,793,698 of offering costs as a reduction of equity in connection with the shares of Common Stock included in the Units prior to their separation [114]. - The Company entered into a Common Stock Purchase Agreement with White Lion Capital, allowing for the purchase of up to $150,000,000 in common stock [124]. - The Company has issued working capital unsecured promissory notes totaling $1,297,000, maturing at the five-year anniversary of the MIPA [132]. - The Company pays its Sponsor $5,000 per month for administrative services, with an additional $5,000 deferred until the closing of the MIPA [131]. Management and Experience - The management team has an average of over 40 years of experience in the energy industry, positioning the company to identify attractive acquisition opportunities [106]. Shareholder Activity - A total of 4,115,597 Public Shares were redeemed from the Trust Account for an aggregate amount of $43,318,207 subsequent to March 31, 2023 [115]. Off-Balance Sheet Arrangements - The Company has no off-balance sheet arrangements as of March 31, 2023 [130].
HNR Acquisition p(HNRA) - 2023 Q1 - Quarterly Report