Financial Performance - For the year ended December 31, 2023, the company reported a net loss of $14,943,203, compared to a net loss of $3,763,638 for the year ended December 31, 2022, representing an increase in net loss of approximately 297%[383]. - General and administrative costs increased to $2,980,863 in 2023 from $2,098,401 in 2022, reflecting a rise of about 42% due to increased activities in preparation for the proposed Business Combination[383]. - The company recognized a loss of $15,600,000 on the change in fair value of the Forward Purchase Agreement liability for the year ended December 31, 2023, compared to a loss of $2,770,000 in 2022, indicating a significant increase in loss of approximately 463%[392]. - Dividend and interest income earned in the Trust Account increased to $4,551,468 in 2023 from $1,289,804 in 2022, marking an increase of approximately 253% due to higher interest rates and a larger average principal balance[383]. Capital Structure and Funding - The Initial Public Offering (IPO) generated gross proceeds of $92 million from the sale of 9,200,000 units at $10.00 per unit, with offering costs of approximately $8.7 million[358]. - As of December 31, 2023, the Company had cash in the Trust Account amounting to $78,702,824, intended for the completion of its initial business combination[377]. - Stockholders redeemed 1,961,875 shares of Class A Common Stock for approximately $20,961,169, leaving approximately $77,333,961 in the Trust Account after the redemption[370]. - The Company has a working capital deficit of $6,843,119 as of December 31, 2023[374]. - The Company has received $739,457 in Working Capital Loans, with an additional $445,000 in loans from ConnectM during the year ended December 31, 2023[376]. - As of December 31, 2023, the company had $739,457 in Working Capital Loans from the Sponsor, up from $157,000 in 2022, reflecting an increase of approximately 370%[406]. - The company has committed to pay $3,680,000 in deferred underwriting commissions to the underwriter, contingent upon the completion of an initial business combination[385]. Business Combination and Future Outlook - The Company extended the deadline to consummate its Business Combination to May 13, 2024, with provisions for additional one-month extensions[363]. - The Merger Agreement with ConnectM Technology Solutions, Inc. was amended to extend the termination date from November 13, 2023, to May 13, 2024[373]. - The Company may be required to dissolve as early as April 13, 2024, if the business combination is not consummated[378]. - The company has not generated any revenues to date and does not expect to do so until after the completion of its business combination[375]. Liabilities and Commitments - The company incurred deferred underwriting commissions of $3,680,000 from the IPO[377]. - The fair value of the put option liability related to the Forward Purchase Agreement was estimated at $18,370,000 as of December 31, 2023, compared to $2,770,000 in 2022, representing a substantial increase of approximately 563%[392]. - The company incurred $120,000 in administrative support fees in 2023, up from $75,000 in 2022, which is an increase of 60%[386]. Stock Information - The company has 9,200,000 shares of Class A Common Stock with a redemption feature, which allows for redemption in connection with liquidation or business combination events[396]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[399].
Monterey Capital Acquisition (MCAC) - 2023 Q4 - Annual Report