Financial Performance - The Company reported a net income of $2,373,957 for the three months ended March 31, 2024, primarily due to a change in fair value of derivative warrant liabilities of $3,191,842 [224]. - The Company incurred general and administrative expenses of $1,072,033 during the three months ended March 31, 2024 [224]. Real Estate Acquisition - The Company completed the purchase of a commercial real estate property in Littleton, Colorado, for a purchase price of $26.75 million [217]. - The Company issued 17,391,300 shares of Preferred Stock at an aggregate purchase price of approximately $200 million, or $11.50 per share, to fund the property purchase [220]. - The Seller Lease Agreement for the purchased property includes an initial monthly rent of $228,500, escalating at 2% annually [212]. Financing Activities - As of March 31, 2024, the Company had borrowed $900,000 under a promissory note from its Sponsor, which was fully repaid on the Closing Date [227][213]. - The Company used approximately $20.58 million from its Trust Account to pay the redemption of 1,941,684 shares of Class A common stock [229]. Compliance and Operations - The Company experienced a suspension of trading on Nasdaq due to non-compliance with initial listing requirements following the Business Combination [222][214]. - The Company had no operating revenues prior to the Business Combination, with activities focused on searching for a target company [223]. Internal Controls - The Company plans to enhance its internal controls related to accounting for complex financial instruments following a material weakness identified [207].
CONX (CONX) - 2024 Q1 - Quarterly Report