Financial Performance - The Company had a net loss of $5,165,243 for the three months ended June 30, 2023, compared to a net loss of $461,079 for the same period in 2022, reflecting an increase in general and administrative costs and losses on the change in fair value of the Forward Purchase Agreement liability[163]. - For the six months ended June 30, 2023, the Company reported a net loss of $5,750,780, which includes $1,352,965 in general and administrative costs and $6,100,000 in losses on the change in fair value of the Forward Purchase Agreement liability[164]. - 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[156]. Cash and Working Capital - As of June 30, 2023, the Company had cash in the Trust Account amounting to $96,758,886, intended for completing its initial business combination[159]. - The Company has a working capital deficit of $3,774,322 as of June 30, 2023, excluding certain tax liabilities[155]. - The Company has received $579,000 in Working Capital Loans to finance operations and transaction costs related to the initial business combination[158]. - During the three and six months ended June 30, 2023, the Sponsor loaned the Company $179,000 and $422,000, respectively, in Working Capital Loans[188]. - As of June 30, 2023, the Company had $579,000 borrowed under the Working Capital Loans from the Sponsor included in Convertible note – related party[188]. Initial Public Offering (IPO) - The Company incurred offering costs of approximately $8.7 million during its Initial Public Offering, which included underwriting fees and fair value of shares issued to underwriters[148]. - The Initial Public Offering generated gross proceeds of $92 million from the sale of 9,200,000 units at $10.00 per unit, including 1,200,000 Over-Allotment Units[148]. - The Company will pay the underwriter $3,680,000 in deferred underwriting commissions upon completion of an initial business combination[167]. - The Company recognized the accretion from initial book value to redemption amount of the redeemable Class A Common Stock immediately upon the closing of the Initial Public Offering[180]. - The Company has 9,200,000 shares of Class A Common Stock sold as part of the Units in the Initial Public Offering, which contain a redemption feature[179]. Business Combination - The Company extended the deadline to consummate its business combination to November 13, 2023, through a Second Extension Payment[153]. - The Company entered into a Merger Agreement with ConnectM Technology Solutions, Inc. on December 31, 2022, to effect a business combination[154]. Administrative Costs - The Company incurred $30,000 and $60,000 under the administrative support agreement during the three and six months ended June 30, 2023, respectively[168]. - The Company pays the Sponsor a total of $10,000 per month for administrative services for up to 12 months[168]. Fair Value and Liabilities - The Company recognized a $5,540,000 and $6,100,000 loss on the change in fair value of the Forward Purchase Agreement liability for the three and six months ended June 30, 2023, respectively[175]. - The fair value of the put option liability related to the Forward Purchase Agreement was estimated at $8,870,000 at June 30, 2023[175]. - 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[184].
Monterey Capital Acquisition (MCAC) - 2023 Q2 - Quarterly Report