Financial Performance - For the three months ended March 31, 2023, the Company reported a net loss of $585,537, primarily due to $809,927 in general and administrative costs and $214,510 in income tax expense [167]. - The Company has a working capital deficit of $2,365,146 as of March 31, 2023, excluding income and franchise tax liabilities [159]. - The Company has not generated any operating revenues to date and does not expect to do so until after the completion of its business combination [160]. - The Company recognized a loss of $560,000 on the change in fair value of the Forward Purchase Agreement liability for the three months ended March 31, 2023 [177]. - The estimated fair value of the put option liability related to the Forward Purchase Agreement was $3,330,000 as of March 31, 2023, compared to $2,770,000 at December 31, 2022 [177]. Initial Public Offering (IPO) - The Company raised gross proceeds of $92 million from its Initial Public Offering (IPO) by selling 9,200,000 units at $10.00 per unit, incurring offering costs of approximately $8.7 million [152]. - The Company issued 9,200,000 shares of Class A Common Stock in the Initial Public Offering, which contain a redemption feature [182]. Business Combination - The Company entered into a Merger Agreement with ConnectM Technology Solutions, Inc. on December 31, 2022, to effect a business combination [158]. - The Company extended the deadline to consummate its business combination from May 13, 2023, to August 13, 2023, by depositing $920,000 into the Trust Account [157]. Cash and Financing - As of March 31, 2023, the Company had cash in the Trust Account amounting to $95,008,704, intended for completing its initial business combination [162]. - The Company has received $400,000 in Working Capital Loans to finance operations as of March 31, 2023 [161]. - During the three months ended March 31, 2023, the Sponsor loaned the Company $243,000 in Working Capital Loans, which are to be repaid upon consummation of a Business Combination [193]. - The Company had $400,000 borrowed under the Working Capital Loans from the Sponsor included in Convertible note – related party as of March 31, 2023 [193]. Administrative Costs - The Company has incurred $30,000 in administrative support fees under an agreement with the Sponsor during the three months ended March 31, 2023 [171]. Shareholder Information - The Sponsor paid $25,000 for 2,875,000 shares of Class B common stock, resulting in a cost of approximately $0.009 per share [189]. - The Sponsor surrendered 575,000 Founder Shares on May 10, 2022, leaving 2,300,000 Founder Shares held by the Sponsor and directors [189]. - The Company’s Public Warrants and Private Warrants could potentially be exercised or converted into common stock, but were excluded from the diluted loss per share calculation due to being anti-dilutive [181]. - The Company complies with ASC Topic 260 for calculating net loss per share, with the weighted average shares for the period from September 23, 2021, through May 13, 2022, reduced by 300,000 Class B Common Stock subject to forfeiture [179]. Accounting Standards - The Company does not expect any recently issued accounting standards to have a material impact on its unaudited condensed consolidated financial statements [184].
Monterey Capital Acquisition (MCAC) - 2023 Q1 - Quarterly Report