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Breeze Acquisition (BREZ) - 2024 Q2 - Quarterly Report
BREZBreeze Acquisition (BREZ)2024-08-19 19:47

Financial Performance - For the three months ended June 30, 2024, the company reported a net income of 17,103,566,primarilyduetoagainof17,103,566, primarily due to a gain of 17,476,250 in the fair value of warrant liabilities[121]. - For the six months ended June 30, 2024, the company incurred a net loss of 4,912,173,whichincludedalossof4,912,173, which included a loss of 3,656,250 in the fair value of warrant liabilities[121]. - For the six months ended June 30, 2023, cash used in operating activities was 1,053,129,withanetlossof1,053,129, with a net loss of 2,164,561[131]. Cash and Working Capital - As of June 30, 2024, the company had cash of 39,970andaworkingcapitaldeficitof39,970 and a working capital deficit of 9,523,707, compared to cash of 4,228andaworkingcapitaldeficitof4,228 and a working capital deficit of 7,849,292 as of December 31, 2023[119]. - As of June 30, 2024, cash used in operating activities was 1,222,258,resultingfromanetlossof1,222,258, resulting from a net loss of 4,912,173[130]. - The company had cash held in the trust account of 10,380,257asofJune30,2024,including10,380,257 as of June 30, 2024, including 340,567 of interest[129]. - As of June 30, 2024, the Company had 39,970incashheldoutsideoftheTrustAccountandnegativeworkingcapitalof39,970 in cash held outside of the Trust Account and negative working capital of 9,523,707[138]. Business Combination and Acquisition Plans - The merger agreement with TV Ammo was terminated on August 5, 2024, and the company is no longer pursuing this business combination[117]. - The company intends to use substantially all funds held in the trust account to complete its business combination[132]. - The company has the option to extend the deadline for completing a business combination up to six additional months, potentially until December 26, 2024[127]. - The Company expects to need additional funds to meet expenditures required for operating its business prior to a business combination[140]. Debt and Financial Obligations - The total amount owed to the Sponsor as of June 30, 2024 is 9,240,428,whichincludes9,240,428, which includes 202,621 for expenses paid by the Sponsor on behalf of the Company[144]. - The Company signed multiple Amended Promissory Notes with the Sponsor, with the total amount increasing from 1,500,000inFebruary2022to1,500,000 in February 2022 to 7,500,000 by July 2024[143]. - As of June 30, 2024, the amount outstanding under the Promissory Note was 6,737,807,whichincludes6,737,807, which includes 5,811,109 for direct working capital[143]. - The underwriters are entitled to a deferred fee of 3,162,500basedon11,500,000sharesissuedintheIPO,payableonlyuponcompletionofabusinesscombination[145].−TheCompanydoesnothaveanylong−termdebtorcapitalleaseobligations,otherthanamonthlyfeeof3,162,500 based on 11,500,000 shares issued in the IPO, payable only upon completion of a business combination[145]. - The Company does not have any long-term debt or capital lease obligations, other than a monthly fee of 5,000 for office space and support services[144]. Going Concern and Liquidity - The Company has incurred significant costs in pursuit of its acquisition plans, raising substantial doubt about its ability to continue as a going concern[139]. - The Company plans to address its liquidity needs through potential Working Capital Loans from the Sponsor or its affiliates[139]. - The financial statements do not include any adjustments that might result from the uncertainty regarding the Company's ability to continue as a going concern[141].