Financial Position - As of December 31, 2022, the trust account held a total of $57,501,914, consisting of $57,500,000 from the IPO and Private Placement, and $1,914 in interest income[104]. - As of December 31, 2022, the Company reported a net loss of $111,447, with operating and formation costs totaling $749,746, offset by interest income of $774,918 from marketable securities held in the Trust Account[125]. - As of December 31, 2022, the Company had investments in the Trust Account amounting to $34,084,917, including $776,832 of interest income[130]. - The Company has no long-term debt obligations or off-balance sheet financing arrangements as of December 31, 2022[139]. - The net proceeds from the IPO have been invested in U.S. government treasury obligations with a maturity of 185 days or less[151]. - The company believes there will be no associated material exposure to interest rate risk due to the short-term nature of these investments[151]. Business Combination - The company entered into a merger agreement with CH AUTO Inc. and its subsidiaries, intending to complete the merger by November 15, 2022[109]. - The company extended the period to complete its initial business combination from January 2, 2023, to April 2, 2023, by depositing $581,000 into the trust account[115]. - The amended merger agreement requires the company to acquire at least 71.2184% of CH AUTO to consummate the closing[119]. - The company received a loan of $350,000 from CH Auto Technology Corporation Ltd. to fund an extension payment for its business combination deadline[120]. - The company plans to issue CH AUTO Merger Consideration to stockholders based on an Equityholder Allocation Schedule[111]. - The company will change its name to CH Autotech USA, Inc. following the merger[109]. - The company has the option to further extend the business combination period beyond July 2, 2023, pending stockholder approval[115]. - The company plans to conduct a reverse stock split of its shares as part of the merger process[110]. - The Company intends to use substantially all funds in the Trust Account to complete its Business Combination, with remaining proceeds allocated for working capital and growth strategies[131]. - The Company has until July 2, 2023, to consummate a Business Combination, after which liquidation and dissolution may occur if unsuccessful[138]. IPO Details - The Company completed its Initial Public Offering on July 2, 2021, raising gross proceeds of $50,000,000 from the sale of 5,000,000 units at $10.00 per unit[126]. - Following the full exercise of the underwriters' over-allotment option, a total of $57,500,000 was placed in the Trust Account[128]. - Offering costs related to the Initial Public Offering totaled $4,773,824, which included $1,150,000 in underwriting fees and $2,012,500 in deferred underwriting fees[147]. - The underwriters are entitled to a deferred fee of $0.35 per unit, totaling $2,012,500, payable only if the Company completes a Business Combination[141]. Accounting and Risk Assessment - ASU 2020-06, effective December 15, 2023, simplifies accounting for certain financial instruments and introduces additional disclosures for convertible debt[149]. - The company is currently assessing the impact of ASU 2020-06 on its financial position, results of operations, or cash flows[149]. - As of December 31, 2022, the company was not subject to any market or interest rate risk[151]. - The Company issued a Convertible Promissory Note to the Sponsor for up to $100,000, which is non-interest bearing and payable upon completion of a Business Combination or liquidation[134].
Mountain Crest Acquisition IV(MCAF) - 2022 Q4 - Annual Report