Financial Performance - For the three months ended March 31, 2024, the company reported a net loss of $22,015,739, primarily due to a loss of $21,132,500 in the fair value of warrant liabilities and operating costs of $1,047,041 [168]. - For the three months ended March 31, 2023, the net loss was $654,261, with cash used in operating activities amounting to $586,560 [197]. Cash Flow and Liquidity - Cash used in operating activities for the same period was $629,741, with cash provided by investing activities amounting to $121,724 and financing activities generating $751,724 [172]. - As of March 31, 2024, the company had cash held in an interest-bearing trust account totaling $13,268,833 [194]. - As of March 31, 2024, the cash held in the trust account was $13,268,833, including $169,580 of interest income [196]. - The company has withdrawn a total of $440,897 from the trust account for tax payments between May 2022 and September 2023 [196]. Working Capital and Obligations - The company has a working capital deficit of $8,985,992 as of March 31, 2024, compared to $7,849,292 as of December 31, 2023 [191]. - The outstanding amount under the Promissory Note as of March 31, 2024, was $6,087,658, which includes $5,242,109 for direct working capital [201]. - The company has a total obligation of $8,584,375 owed to the Sponsor as of March 31, 2024, including loans and expenses paid on behalf of the company [202]. Business Combination and Extensions - The company executed multiple one-month extensions for its business combination deadline, with the latest extension valid until September 26, 2023 [171]. - The company executed a total of six one-month extensions for its business combination deadline, with the first extension costing $59,157 [195]. - The company intends to use funds in the trust account to complete its business combination and finance operations of the target business [173]. - The company signed a Merger Proxy/Business Combination Rate Agreement with a $50,000 success fee upon completion of the merger with TV Ammo [203]. Revenue and Operations - The company has not generated any revenues to date and only incurs expenses related to being a public company and due diligence activities [192]. - The company may use up to $1,000,000 of loans from initial stockholders, convertible into warrants at $1.00 each, but the Sponsor has elected not to convert [198]. Internal Controls and Going Concern - The company has a material weakness in its internal control over financial reporting, affecting the accuracy of its income tax provision for the year ended December 31, 2023 [209]. - The company’s business plan is contingent on completing a business combination, raising substantial doubt about its ability to continue as a going concern [200].
Breeze Acquisition (BREZ) - 2024 Q1 - Quarterly Report