IPO and Financial Proceeds - The company completed the sale of 15,000,000 Units at $10.00 per Unit, generating gross proceeds of $150,000,000 from the Initial Public Offering on November 8, 2021[130]. - An additional 2,250,000 Units were sold through the underwriters' over-allotment option, resulting in gross proceeds of $22,500,000, bringing total IPO and over-allotment gross proceeds to $172,500,000[132]. - As of November 2, 2023, $175,950,000 was placed in the Trust Account, invested only in U.S. government securities or money market funds[133]. - The Trust Account held an aggregate of $175,900,000 as of November 12, 2021, with funds primarily invested in U.S. government securities[158]. Shareholder Activity - Shareholders redeemed 2,374,826 Class A Ordinary Shares for approximately $11.33 per share, totaling a redemption value of approximately $26,907,976[136]. - Shareholders redeemed 12,626,668 Class A Ordinary Shares for approximately $10.50 per share, totaling a redemption value of approximately $132,616,922[145]. Business Combination and Operations - The company has until November 8, 2024, to complete a Business Combination, or it will commence automatic liquidation[165][166]. - The company has entered into a Business Combination Agreement with Scage, which was unanimously approved by the Board of Directors[151]. - The company has not commenced any operations and will not generate operating revenues until after completing an initial Business Combination[153]. Financial Performance - As of March 31, 2024, the company reported a net income of $242,095, down from $1,608,034 for the same period in 2023, primarily due to a decrease in interest earned[154]. - The company incurred $261,957 in operating activities for the three months ended March 31, 2024, driven by interest earned and net income[156]. - The company has cash of $5,436 available for working capital needs as of March 31, 2024, with $52,063,473 held in the Trust Account[156][158]. Debt and Financial Obligations - The company has no long-term debt or capital lease obligations as of March 31, 2024[168]. - The company issued a June 2023 Promissory Note for up to $1,200,000, with the Sponsor agreeing to pay $100,000 per month until the completion of an initial Business Combination[147]. - The company issued a November 2023 Promissory Note for up to $1,500,000, with $709,859 outstanding as of March 31, 2024[162]. Regulatory and Accounting Standards - The company received a Notice from Nasdaq regarding non-compliance with the Minimum Total Holders Requirement, which requires a minimum of 400 total shareholders[139]. - The company adopted ASU 2020-06 on January 1, 2024, with no material impact on financial position, results of operations, or cash flows[179]. - ASU 2022-03, effective for the company in fiscal years beginning after December 15, 2023, introduces new disclosure requirements for equity securities subject to contractual sale restrictions[180]. - ASU 2023-09, effective for annual periods beginning after December 15, 2024, will enhance transparency and usefulness of income tax disclosures[181]. - The company is evaluating the impact of pending adoption of ASU 2023-09 on its financial position and disclosures[181]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[183]. - The company is assessing the benefits of relying on reduced reporting requirements provided by the JOBS Act[184]. - As a smaller reporting company, the company is not required to provide certain market risk disclosures[185]. Shareholder Meetings - The company held a 2024 EGM where approximately 88.02% of total Ordinary Shares were present, constituting a quorum[135]. - The company issued 4,237,499 Founder Shares to the Sponsor upon the Founder Share Conversion on May 8, 2023[148]. Income Per Share - The diluted income per share is the same as the basic income per share for the period presented due to the anti-dilutive effect of Warrants[178].
Finnovate Acquisition (FNVT) - 2024 Q1 - Quarterly Report