Presto Automation (PRST) - 2021 Q4 - Annual Report

Financial Position - As of June 30, 2021, the company had cash and marketable securities in the Trust Account totaling $174,259,906, including approximately $34,906 of interest income[139]. - The company has no long-term debt or off-balance sheet arrangements as of June 30, 2021[145]. - Proceeds from the Initial Public Offering have been invested in U.S. government treasury obligations with a maturity of 183 days or less[155]. - The company believes there will be no material exposure to interest rate risk due to the short-term nature of these investments[155]. Income and Earnings - For the three months ended June 30, 2021, the company reported a net income of $1,443,756, driven by a change in fair value of warrant liabilities of $1,668,750 and interest earned on marketable securities of $8,731[129]. - For the six months ended June 30, 2021, the company achieved a net income of $4,904,863, which included a change in fair value of warrant liabilities of $5,487,000 and interest income of $34,906[130]. - Cash used in operating activities for the six months ended June 30, 2021, was $415,254, with net income affected by interest earned and changes in fair value of warrant liabilities[135]. Initial Public Offering - The company completed its Initial Public Offering on December 30, 2020, raising gross proceeds of $150,000,000 from the sale of 15,000,000 Units at $10.00 per Unit[132]. - Following the over-allotment option exercise on January 5, 2021, the company generated an additional $22,500,000 from the sale of 2,250,000 Units[133]. - The company incurred $3,993,017 in costs related to the Initial Public Offering, including $3,450,000 in underwriting fees[134]. - The company intends to use substantially all funds in the Trust Account to complete its Business Combination, with remaining proceeds allocated for working capital[140]. Accounting Standards - The Financial Accounting Standards Board issued ASU 2020-06 to simplify accounting for certain financial instruments, effective January 1, 2022[153]. - ASU 2020-06 eliminates the separation of beneficial conversion and cash conversion features from convertible instruments[153]. - The new standard introduces additional disclosures for convertible debt and freestanding instruments indexed to an entity's own equity[153]. - Management does not anticipate that recently issued accounting standards will materially affect the unaudited condensed financial statements[154]. Business Combination - The company has engaged Chardan Capital Markets, LLC as an advisor for the Business Combination, with a marketing fee of 3.5% of gross proceeds payable upon completion[147].